Buildings insurance typically covers parts of your property that may not necessarily be at the forefront of your mind such as structural issues, water damage caused by burst pipes, storm damage and afflictions caused by flooding, fire, and other factors.
Accidental damage can also be added. Buildings insurance is one of the most claimed-for policies which shows how essential it is for landlords and property owners to have a tailor-made policy that mitigates risk and protects your property for decades to come.
It is essential to insure your buildings for the full rebuilding cost (rather than the market value of the property) to avoid under-insurance, the consequences of which can be disastrous for a property owner.
Stock and Work In Progress Insurance
Items classed as work in progress (WIP) typically hold higher vale than raw materials, but less value than the finished product. It still counts as stock, though, with a number of businesses including WIP products in their inventories.
In the event of a claim the value of the Work in Progress would take into account the cost price of the raw materials plus the additional cost of labour etc up to the point in the production process at which the goods were damaged.
WIP items are still subject to matters beyond your control and can be affected by fire, flood damage, theft, and other situations. A tailored stock and work in progress insurance policy affords cover to WIP products in the event of a disaster.
Property Owners Insurance
Property Owners Insurance to cover the buildings, landlord’s contents, loss of rent, the cost of alternative accommodation and property owner’s liability is available for owners of a wide range of properties such as:
- Residential property owners
- Unoccupied properties
- Commercial properties
- Trading estates
Business Interruption Insurance
A business interruption policy insures the business against any loss of earnings that may occur should premises (such as a factory) have to be closed due to a disaster or other unforeseen circumstances.
Most policies cover interruption caused by flooding, fire, storm damage, or breakdown of essential equipment. A business interruption policy covers profits that the business would have earned during the period the facility is closed and in the following period until the business returns to its previous level of trading and can be applied for all types of businesses.
Business interruption insurance also helps cover fixed costs, moving to a temporary location, extra expense pay-outs, and more. Property insurance only covers physical damage. Business interruption can be added to property insurance and keeps your business going while you rebuild.
Certain extensions can be added to the business interruption cover. For example, if you rely heavily on one or a small number of suppliers or customers, a catastrophic fire at their premises could cause interruption to your business. A customers or suppliers extension would protect you in these circumstances.
Unoccupied Property Insurance
Most insurers consider a property to be unoccupied if it has been vacated for more than 30 consecutive days.
The increased risk of damage from squatters, vandalism, fire and escape of water (not being detected for several days) means that insurers charge a higher rate and frequently restrict cover.
Additional conditions may also be added to the policy to reduce this risk so it is essential that the policyholder is aware of these additional obligations otherwise cover may be invalidated.
When getting an empty house insured, the following steps are recommended and may very well be a requirement of the insurer:
- Inspect the property regularly
- Ensure repairs are done swiftly
- Remove all valuables
- Seal letter boxes to reduce vandalism
- Secure your property with high security window and door locks
- Set the burglar alarm (if there is one)
- Turn the heating on or keep it on a frost alert setting during winter
- Switch off utilities
Contract Works Insurance
Contract Works Insurance covers the property being worked on, i.e the works. (With new builds that would be the building in the course of construction. With extensions to an existing structure, it would cover the extension in the course of construction, but not the existing structure).
The policy can also be arranged to cover:
- Own Plant, scaffolding, site huts or temporary buildings
- Hired in plant and equipment
The policy will provide cover for materials to be incorporated into the building and whilst in transit to the contract site.