cover

Underinsurance, don’t get caught short

Posted on by Mike

 

0616-na-underinsurance-box1-31km8hgnobur8prthgbe2o

Underinsurance is very much a taboo topic in the commercial market despite the devastating effects of misunderstanding the requirements. If you or your advisers don’t correctly assess and understand the nature of the policy and associated risks you can easily find yourself underinsured or even worse, in breach of the policy terms.  The fallout is both damaging for the customer and the insurer in terms of their reputation and customer relationships, which explains why this is now a highly monitored area of the insurance industry.

Calculator-Statistics-RHS-Final-V1

Commercial property is claimed to be the most likely affected by underinsurance according to the Building Cost Information Service. They suggest that 80% of commercial properties could be underinsured by a whopping 60% meaning that for a property worth $1 Million, there will be a short fall of around £600,000. Some attribute this to the consistent effort of property owners to cut costs, meaning that valuations and risk assessments become less important… don’t be one of those people.

Property valuations are essential if you are to buy the correct cover as an estimate is needs to reflect the cost of rebuilding the property rather than its market value price. In reality, many make this very mistake by not incorporating features such as gates and car parks as property value, consequently buying much less cover than actually applicable or needed.

shutterstock_128908430-831x548

Here at Regency Insurance we know what’s right for you. We are a local insurance firm which has been operating in the area for many years now, which means we can provide a much more tailored service for you. We can help you review your valuations early on as well as checking sub -limits in package policies are sufficient for your individual situation. Cyber risks are a topic customers often misunderstand and/or the covers will be unfamiliar. Regency Insurance always make sure that our clients are fully informed before proceeding with any insurance package, promoting a fair and honest work practice.

In addition to this, we can also provide advice on arranging Business Interruption Insurance and we will guide you on the appropriate sum and period of indemnity.

We can protect your property and your contents from theft, storms, water damage and much more. Give us a ring for advice or a quote we are always happy to help.

 

 

Regency Insurance Services: Are you covered for winter weather damage?

Posted on by Mike

It’s about time you double checked your home insurance policy terms and cover, if just for the peace of mind. Every year you’ve brushed off the suitably dire warnings from your favourite weather-girl, laughed at The Express foretelling yet another apocalypse and had a good moan about the train being late due to leaves on the line (or some other “reason”)

Now though, it feels different. Bad storms and heavy flooding seem to have become a regular occurrence, and the thought of ringing up your insurers and hearing the words “Sorry, we can’t cover you for the damage” makes you feel nauseous.

 

The Culprits

The main causes of wintertime damage are storms and the cold. Storms can directly damage your house and surrounding trees, causing branches (or even entire trees) to fall onto your – or worse, your neighbours – home. Indirectly they can cause flooding, which will lead to damage of both your home and possessions.

Flooding and storm risk affects insurance

Classically, one always worries about frozen pipes in the winter (burst pipes, no heating and water – never good), but there are other problems you should be aware of. If there’s enough snow you should be wary of collapsing roofs, tree branches and damage to cars. From a legal perspective: if a person slips and falls, whilst on your property, you could be liable.

 

What’s Covered

Apart from the heartache and hassle, the cost of cleaning up damage can be huge. Policies will vary and it’s worth closely reading the clauses, but in the UK, home insurance will generally cover:

  • Natural events such as storms and flooding
  • Fire, smoke damage and explosions
  • Vandalism
  • Subsidence
  • Vehicle collision
  • Falling trees
  • Water damage from leaking or burst pipes
  • Oil leaks from your heating system

Obviously not all of these are relevant to weather damage, but the majority are. In particular, flood insurance is now normally included as a standard part of your house insurance. Unfortunately it also rarely includes the contents of your home, unless you take out a specific home contents insurance policy. So if you live in a high-risk area it could be worth paying a premium.

Depending on your policy, your insurer may also cover structures outside your house (garden, garage, driveway, fences and walls).

 

What’s (probably) not Covered

More insurers won’t cover any damage caused by:

  • Frost (unless it causes damage through a burst pipe)
  • Leaking gutters
  • Replacing damaged belongings.

Again, don’t take my word for it. Check your policy carefully and make a note of what is and what isn’t covered.

 

The Curveball

If there’s one thing likely to scupper your claim, it’s the insurer claiming homeowners negligence – insinuating that you neglected standard care of your home, allowing it to withstand normal winter weather. Common negligence claims in the UK include:

  • Flooding – if you develop your land and it adversely affects the risk of flooding and causes damage to your, or your neighbours house, it’s unlikely to be covered.
  • Pipes – if the insurance company believes that you didn’t take adequate precautions (heating on, pipes drained, etc.) you may be denied coverage.
  • Trees – if you know that a tree or branch is at risk of falling, do something about it! If it’s looking tenuous now, imagine what will happen if a gale hits it.

 

Reduce the Risk

Home insurance is just another arrow in your quiver. If something were to happen, and you didn’t have insurance, you’re either going to have to foot a very large bill or (even worse) you could be liable and potentially lose your home.

If you’ve decided to have a second look over your policy, it’s worth talking to an insurance broker so you fully understand all the terms and conditions. Before you go, here are a few relevant questions you could ask:

  • If my home was damaged by a natural event, what is and what isn’t covered?
  • Are contents covered? Is it “New for Old” or “IndAndrew Dartford Insurance Brokeremnity” cover?
  • Do they cover alternative accommodation?

“And remember, you don’t always have to claim. If the damage is minimal and doesn’t cost much more than the deductible, is it really worth raising your premium over?”

Andrew Dartford – MD at Regency Insurance Services

If there’s anything you’re not sure about, just let us know. We’d be happy to go through the detail with you and advise on policies and claims. Just give us a ring on 0208 690 8667