Property Owners have their own unique requirement when it comes to arranging insurance cover and as such we look at protection of assets and rental income in close detail.

Building Insurance

Without doubt, for any Property Owner insuring their building is the most important cover to consider. It is usually the first policy to be taken out and care should be exercised to ensure that this is carried out correctly and that all the relevant facts have been disclosed to the Broker/Insurer. Examples of facts that should be disclosed include the condition of the Property and Electrics, the method of Heating, and Occupation particularly if this changes during the course of a year. In some instances accurate disclosure can lead to reductions in premiums. Care should be taken to ensure that cover includes Property Owners Liability and Subsidence as some standard policies especially for commercial properties do not provide cover automatically for these area

Terrorism

Cover for terrorism is normally provided automatically for up to £100,000 for any Commercial Property and up to £2.5 million for any Residential Property. Consideration should be made for every property above these limits particularly if the property is in a "high risk" area such as near a Railway Station, Bridge or Public Office.

Business Interruption

In the event of severe damage it can be months or years before the building is re-inhabitable. The main cover under this section therefore, for a Property Owner is for Loss of Rent for a commercial landlord, or alternative accommodation for a residents association. An important issue for Commercial Property Owners to consider is, does the cover cease when the property has been rebuilt or re-let, and on premises being developed does cover include Advance Rents?

Engineering

Plant and Machinery such as Lifts and Air Receivers or other similar equipment have a statutory requirement for the plant to be inspected. Insurance cover for the equipment, the damage that is caused on failure and the statutory inspection is available under a single policy.

Latent Defects

Owners or Developers can insure against damage to their property by Latent Defects*. Cover is normally available for up to 12-years following completion. It is best arranged before the construction programme has started in order to secure the best terms from insurers. Most people are familiar with NHBC Guarantees which are given on new domestic properties, similar cover is also available for most New Commercial Properties, and this can provide up to a 12-years guarantee for the Owner/Developer. If any building damage occurs as a result of latent defects, the Insurer would cover the costs to rectify the problem.


* Latent Defects, are defects which have originally occurred at the time of construction but do not manifest themselves until some substantial time afterwards.

Contract Works/J.C.T.21.2.1 Cover

New developments or even alterations to an existing building can take several months or even years to complete. A Contract Works (or Contractors All Risks) policy will provide insurance for the structure and unfixed materials on site during this period. Depending on the terms of the contract with the developers this cover can be taken out by the property Owner, the Builder or both. In addition Contract Works insurance covers the tools and materials on site as well as the property in the course of construction or alteration but any existing structures are normally automatically excluded as they are often already insured by the Property Owner. Cover can be extended as necessary if this is not the case. Other extensions available include Hired plant, Temporary Buildings, Show Houses, Materials in Transit and Terrorism.

Legal Indemnity

There are a considerable number of different Legal Indemnities available, which can cover Restrictive Covenants, Missing Beneficiaries, Tenant Performance bonds to name a few, all of which in the appropriate circumstances can provide financial peace of mind to any Property Owner.

Directors & Officers Insurance

The Companies Act 1985 alone sets out more than 200 offences for which a director can be personally liable. Add to this the numerous other offences under Health & Safety, Environmental and Financial Services Acts and it can be seen how important it is to consider this type of insurance cover. The Insurance cover protects the personal assets of company directors and officials.

Legal Expenses

Commercial Legal Expenses Protection is becoming increasingly important to small and medium size businesses. This policy provides access to expert advice and assistance in resolving a number of different areas and if necessary will pay for the cost of legal fees and/or accountancy fees to conclude the dispute. Typical areas of cover, which often can be bought as a package include, Contract, Employment, Data Protection, Criminal Prosecution Defence, Property Protection and VAT Disputes. For larger companies wide cover is available for each specific area.


Cover can also be obtained for "After the Event" Litigation. A range of solutions is available for those who wish to pursue their legal rights through litigation