Property Owners and Asset Insurance

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Felicia Quinn
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1 Property Owners and Asset Insurance

Introduction Vantage are a broker with a great deal of experience in providing insurance services and advice for property owners and High Net Worth clients.

2 Introduction Vantage are a broker with a great deal of experience in providing insurance services and advice for property owners and High Net Worth clients. Many such clients deal directly with us but we also work closely with trust companies and corporate service providers whose clients require a high level of attention with their insurance arrangements. We act as a trusted partner for an increasing number of leading firms, undertaking their insurance placements across the full spectrum of risk - from the most elementary to the most complex. Our prime objective is to protect the interest of Trustees and to reduce their exposure to risk for the fiduciary responsibilities they undertake. This is achieved by a close working relationship with the trust company to understand the insurance needs, obligations and exposures for the client asset insurances. This brochure presents the range of services that we offer to trust companies for their client insurance requirements. 2

3 Property Owners Insurance For many years property has provided a solid asset and investment base for offshore trusts and companies. The majority of insurance enquiries we receive from trust companies are for UK based property insurance - both residential and commercial premises. For overseas or international properties we have access to international insurers, Lloyds of London and global broker networks to place such risks. The fiduciary position and responsibility of the offshore service provider ensures it is paramount that a property portfolio has adequate insurance protection. Failure to confirm this can leave the trustees (or company directors) open to allegations of negligence should an insurance claim be refused by underwriters. Property owners insurance is often purchased purely on price, and whilst the level of premium paid is important, experience has shown that extent of cover is often overlooked. There are many areas that need to be carefully examined when insurance cover is being arranged. Vantage have a great deal of experience in this respect and are able to guide the trustees to the most cost effective and comprehensive insurance solution. Property owners risks: UK based properties - residential and commercial Overseas properties / holiday homes In-house scheme facilities Vantage operate a number of in-house schemes for UK property owners risks. Under these facilities we have full delegated authority (up to pre-agreed limits) to provide quotations and to arrange insurance coverage on a wide range of properties. For those risks that fall outside this pre-set facility (for example, increased sums insured or for certain hazardous risk exposures) we have direct access to individual underwriters within these insurance companies who are committed to providing us with an efficient and prompt response. Underwriting (i.e. pricing) such risks ourselves ensures we can provide competitive premium levels at all times. We pride ourselves in providing clear and concise quotations and presentations clearly explaining the scope of policy cover and premiums. Under these schemes we issue all policy documentation ourselves, thus ensuring we can continue to provide an excellent service to trust companies from the first point of contact through to policy issue. This ensures that management and staff do not incur the unnecessary delay, or expense, in continually chasing insurance providers for quotations or policy documentation. This facility is particularly useful, for example, when mortgagors require their interest to be noted on the policy schedule and require a copy of the policy for their own records. Unoccupied properties Building Contents Property Owners Liability Loss of Rent / Alternative Accommodation 3

4 Points to consider when arranging property insurance 1. Ensure the rebuilding costs are accurate. If this is incorrect then the property owners insurance will be subject to the Average condition in the policy and the policy holder could be faced with a reduced claim settlement and having to pay out to reinstate some of the property at their own expense. 2. Listed or heritage properties. Make sure that insurers are aware of this fact and check the sums insured. Listed properties can be particularly expensive to rebuild and the length of time involved in reconstruction can be significant. If there are tenants make sure that an adequate Loss of Rent period is insured. 3. Day One provision. Insurers will normally provide a Day One uplift (typically 15%, 25% or 30%) to provide protection against inflation. In the event of a claim the sum insured is effectively uplifted to cater for any inflation and increased rebuilding costs. Please note that the policy will still require you to ascertain and insure for an accurate building reinstatement cost at the policy inception or at the time of loss (i.e. Day One ) otherwise the Average condition may apply. 4. Ensure that the policy provides for loss of rental income if tenants occupy the premises. The selected indemnity period should represent the maximum time that it would take to rebuild the property and then to re let the premises. 5. Seek to negotiate a non-invalidation clause. Trustees can have their position prejudiced by the actions of others and the inclusion of this clause can avoid the situation of insurers treating the policy as null and void in the event of a claim if the cause of a loss is due to a tenant invalidating the policy, for example non adherence to a policy condition or warranty. Additional property insurances Contract works / contractors all risks Should a property undergo any alterations or extensions then contract works insurance should be arranged. This is a complex area and care needs to be taken to ensure that the correct responsibilities for arranging any insurance cover are identified (e.g.; sometimes it is the property owner, sometimes it is the contractor) as well as any liability insurance covers This is a specific extension under a Contract Works insurance and covers any non-negligent damage to surrounding property causes by the contractors. Latent defects This can be an important insurance cover for any property developers and provides first party insurance cover for any defects in the design or build of a property. The existence of this insurance removes the need of having to seek recourse through the courts against any negligent party (for example the architect or developer) who may be difficult to trace or may have ceased trading completely. Pollution / environmental risks UK environmental legislation imposes strict liabilities on property owners where polluted land is identified. If the original pollutant cannot be found then the responsibility will rest with the current freehold owner along with the large costs incurred for measures to be taken to remedy the pollution of the site as well as any clean-up costs for neighbouring third party sites. 4

5 Additional Insurance Covers For insurance risks other than Property Owners and which fall outside our scheme facilities we have developed access to a wide ranging network of local, national and international insurers. This extensive database of insurance providers ensures we are able to secure cover on any insurable risk or problem that you, or your clients may require. This may Home contents, personal effects & jewellery Vantage have many year s experience of arranging insurance cover for clients with high value properties and their contents. Policies can be arranged to worldwide all risks cover agreed values access to specialist valuers and restorers Fine art and antiques This can be arranged as part of a household policy or as a stand-alone cover for collections. Cover can all risks cover - either restricted to the premises (at home, a gallery or in storage) or on a worldwide basis agreed valuations transit risks new acquisitions - an automatic uplift in the sum insured for newly acquired items death of the artist extension Marine Our experience ranges from small craft up to super yachts in UK waters, the Mediterranean or on a worldwide basis. Policy cover can hull and machinery third party liability, crew liability, charterer s liability boat contents (including crew personal effects) cover for launches and jet skis crew personal accident / medical insurance Aviation We can arrange cover for private light aircraft, executive jets and helicopters. Policy cover can aviation hull third party liability war risks Collectors cars From vintage and veteran vehicles up to modern super cars, cover can be arranged on a traditional comprehensive motor policy basis or pure off road collector s risks only. Policy cover can agreed valuations track day cover Kidnap and ransom Kidnap and ransom demands can now be a common occurrence across the world. This insurance protection should be carefully considered for any private client family members - not just the principal but also the wider family members - for example a son or daughter in full time education away from home. This insurance can also provide peace of mind for employers who send employees abroad and by offshore service providers who are responsible for visiting clients and their families in overseas territories. Policy cover can the ransom fee access to specialist consultants and negotiators medical and repatriation costs 5

Follow Vantage Vantage Insurance Brokers Limited, PO Box 420, Vantage House, Anley Street, St. Helier, Jersey JE4 0WQ T: +44 (0)1534 758875 E: info@vantage.je www.

6 Follow Vantage Vantage Insurance Brokers Limited, PO Box 420, Vantage House, Anley Street, St. Helier, Jersey JE4 0WQ T: +44 (0) E: Vantage Insurance Brokers Limited is regulated by the Jersey Financial Services Commission for the conduct of General Insurance Mediation Business. Version: 7 (January 2019)

Personal Pension Plan. Key Features

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