Property
Owners
Insurance

It is possible to get niche insurance for many different perils, but the core covers we would always recommend ensuring that your policy includes are as follows:

FLEA (Fire Lightning, Explosion and Aircraft) – these are the core perils usually covered by a Property Owners Policy, and in the case the property is unoccupied, cover is often restricted to just these covers.
Storm – this peril covers damage resulting from a storm, from heavy rainfall and wind or snow damage. Common examples of this damage would be tiles being blown from roofs following heavy winds and the resultant water ingress caused.
Flood – from an insurance perspective this is considered to be a sudden inundation of water from any external source. This is not just overflowing rivers or tidal surges, but also includes groundwater run-off following heavy downpour which are unfortunately becoming more and more common.
Escape of Water – should there be a leak from within the property (such as from pipework or an appliance), this cover is here to cover the costs of tracing the leak and putting right such damage as well as paying for redecoration or repairs to the building caused by the water damage.
Subsidence, Landslip & Ground Heave – Subsidence covers damage to the property caused by the upwards downwards movement of the foundations of a property. This is commonly caused by trees extracting moisture from subsoils that are susceptible to movement (such as clay). Conversely, heave relates to damage caused by the upwards movement of the foundations, usually when subsoils absorb too much moisture and swell. Landslip refers to movement of slopping soil/ground overtime, usually as a result of erosion from water.
We always recommend obtaining this cover where possible as putting right the damage involves expertise and such claims often take years to settle. Furthermore the total cost of putting right such damage is often the tens of thousands.
Please note that many mortgage lenders will often insist on insurance for these scenarios being in place and the provision of existing subsidence cover often forms part of the conveyancing process for new buyers. Maintaining these covers will therefore assist should you come to sell your property or leasehold in the future.

Insurers will often apply what is called a Day 1 Uplift to the Declared Value of the property. This is in essence an inflationary protection measure taken by the insurers, to account for the sums insured increasing across a policy period. It varies from insurer to insurer, but does not affect the premium.

Some insurers issue terms based on the Building Sum Insured being Index Linking, meaning at the time of the claim the insurers will account for any inflation across the policy period when reviewing the claim payments.

We have a number of tools at our disposal to ensure that you have the correct figure insured for your property:

Desktop Surveys – we use a RICS approved surveying company who can carry out a Desktop Survey of your property. This is a desktop survey using various mapping tools and current RICS rates therefore a visit to your property will not be required, although in some instances a telephone call may be required to confirm some of the specific details.

Site Surveys – for the most accurate rebuild to be obtained, we can arrange for a site visit to the property with a RICS approved surveyor. This is the most accurate way to obtain a rebuild figure for the property as a trained professional will be taking into consideration all aspects of the property.

Underinsurance has become a common issue over the last few years, largely due to the high levels of inflation causing costs to skyrocket, and accordingly the values of properties to have been largely increased.

The Average Clause is applied by the insurers for properties to be deemed to be underinsured. The insurer will only pay out a percentage of the claim proportionally to the amount the property was underinsured by. For example:

If the property is insured for £1,000,000, but the insurers deem it to be valued at £1,500,000, the property is insured for 2/3 of the true value. If there is a claim for £150,000, the Insurers will only pay £100,000.

In order to prevent this unfortunate situation, we always recommend ensuring the property is covered for the correct figure.

Once you are insured, most insurers will take into account inflation at renewal each year, with your sums insured being index linked. This is where the insurers apply a percentage increase to your sums insured for the renewal, and issue terms on this basis.

For example, if your property is insured for £500,00 in January 2023, at renewal in January 2024 the insurers may apply a 5% increase to this figure, and your renewal terms will be issued with a declared value of £525,000.

The figure varies from insurer to insurer, and as such is something we strongly recommend reviewing annually to ensure that it is still sufficient for your requirements.

When you review any terms you receive for an insurance quotation, there are a number of things you should consider, to ensure than you have the correct cover in place, and that the limits are sufficient for your needs.

• Excesses – are there any excessively high excess for any perils that would essentially restrict a cover?
• Endorsements – are you able to comply with all endorsements on the policy? If not, this could result in claims not being paid for certain risks, and in some extreme circumstances, being avoided entirely. If we are advised that an endorsement is not achievable, we can negotiate with insurers to try and get them removed or obtain a suitable alternative.
• Operative Covers – are all the requested covers in place? Is a specified peril such as Flood omitted when it is a cover necessary to you?
• Statement of Fact – are all the answers in the Statement of Fact correct?

We always advise you review all policy documentation sent by ourselves in order to ensure that the risk is presented correctly, as once a policy is live, these amendments can cause additional costs to you, or in severe cases, cause claims not to be paid.