REAL ESTATE EXPERTISE SECURITY DELIVERY REAL ESTATE REAL ESTATE APPETITE WHY ZURICH FOR REAL ESTATE EMERGING RISKS COVER LEGAL INDEMNITIES

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1 1 EXPERTISE SECURITY DELIVERY APPETITE WHY ZURICH FOR EMERGING RISKS COVER LEGAL INDEMNITIES ADDING VALUE CLAIMS MAJOR CUSTOMERS & INTERNATIONAL PORTFOLIOS CTRL F Find what you re looking for using Ctrl F to search this guide KEY CONTACTS

2 APPETITE 2 APPETITE EXPERTISE SECURITY DELIVERY COMMERCIAL RESIDENTIAL MIXED (COMMERCIAL & RESIDENTIAL) DEVELOPERS INTERNATIONAL

3 APPETITE COMMERCIAL 3 COMMERCIAL SELF-MANAGED COMMERCIAL PROPERTY PORTFOLIOS Making up a large part of the UK Real Estate sector these are commercial property owners who manage their own properties or use a panel of property professionals to take on management tasks. Portfolios consist of high quality property with excellent maintenance programs and high quality tenants. Customers here understand tenants industry needs and inherent risks. ASSET FOCUSED REAL ESTATE INVESTORS Investors who specialise in a single occupancy type, such as offices or shopping centres, fully understand and identify with the sector in which they operate. Their close alignment with their chosen industry sector brings with it an excellence of management and tenant engagement. The assets themselves tend to be of the very highest standard. MANAGING AGENTS WHO MANAGE PORTFOLIOS FOR SINGLE CLIENTS Commercial property assets comprehensively managed by a Managing Agent (including Estate Agents and Surveyors) for a full range of services are attractive. The management brief will particularly include a consistent approach to managing risk and tenant relationship within the portfolio. MANAGING AGENTS WHO MANAGE PORTFOLIOS FOR MANY CLIENTS Managing agents (including Estate Agents and Surveyors) can be seen as customers in their own right where they are authorised to place the insurance coverage on behalf of their property owning or investing client. A consistent approach to management of properties, a good awareness of risk and compliance with risk improvement actions and a good local knowledge are all positive features. INVESTMENT AND PENSION FUNDS This customer type operates investment vehicles on behalf of third party investors including Pensions funds. This sector will include REITs (Real Estate Investment Trusts) some of the largest property investors in the UK. Investment funds will often be focused upon a particular asset type. Moderate funds would focus upon retail and office. More Aggressive funds demanding higher yields will invest in leisure and warehousing. NEXT: RESIDENTIAL

4 APPETITE RESIDENTIAL 4 RESIDENTIAL PORTFOLIOS OF PROFESSIONALLY MANAGED RESIDENTIAL BUSINESS Customers in this sector are professional owners or managers of portfolios of residential blocks whether flats or houses. The ownership of the blocks can be collective such as in a residents association or as a commercial property owner. It is common in this space for Property Managers and Residential Managing Agents to manage blocks of property on behalf of owners and they would also be responsible for placement of insurances. Managers who are effective at controlling the frequency of water damage losses are the most attractive. PROFESSIONALLY MANAGED SCOTTISH FACTOR PORTFOLIOS Factors are Property Managers for blocks of residential property in Scotland. The ownership model in Scotland differs to England and Wales as individual tenements and flats will be in the ownership of individuals. A factor takes on the role of superintending a property on behalf of its owners. These are large Portfolios to which the Property Factors Act applies minimum standards and a code of practice. Again Managers who are effective at controlling the frequency of water damage losses are the most attractive. CAPTIVE ARRANGEMENTS Property professionals who manage residential portfolios and arrange insurances within a captive program. Whilst complex and demanding of capital and risk management focus this is an expanding market. NEXT: MIXED (COMMERCIAL & RESIDENTIAL)

5 APPETITE MIXED (COMMERCIAL & RESIDENTIAL) 5 MIXED (COMMERCIAL & RESIDENTIAL) PROPERTY OWNERS INVESTING IN PORTFOLIOS OF BOTH COMMERCIAL AND RESIDENTIAL This is a large part of the UK Real Estate sector and includes more traditional property owners investing in a mixed portfolio of property. Here portfolios are well spread geographically, are often long established and enjoy a loyal tenant base. ORGANISATIONS WHICH OWN AND MANAGE NON RURAL ESTATES These are customers that own large mixed use property estates often arising out of historic family structures. They are usually confined geographically to prestigious areas of our major cities and comprise high quality property that are well managed and maintained and attract high quality tenants. NEXT: DEVELOPERS

6 APPETITE DEVELOPERS 6 DEVELOPERS PROPERTY DEVELOPERS BUILDING COMMERCIAL AND RESIDENTIAL PROPERTY Customers in this sector are Property Developers building Commercial and Residential Property who retain property post completion. Good standard of build and swift letting of units along with risk awareness and supportive local teams of maintenance surveyors. Customers will either manage and maintain their assets or appoint local property managers to manage them on their behalf. Developers that immediately sell on completion are less attractive but could be considered where they are a Zurich Construction customer. NEXT: INTERNATIONAL

7 APPETITE INTERNATIONAL 7 INTERNATIONAL UK DOMICILED INVESTORS WITH AN INTERNATIONAL PORTFOLIO Our appetite focusses on professionally managed portfolios, predominately in Europe with a growing and active business strategy. We provide our customers with fully compliant insurance solutions and local representation in 200 territories. Buildings will have low levels of unoccupancy being occupied as office, retail and industrial, with a wide geographic spread and low exposure to natural catastrophic risk. Customers are sizeable with potentially complex needs, so they require a bespoke solution. NEXT: WHY ZURICH FOR

8 WHY ZURICH FOR 8 WHY ZURICH FOR EXPERTISE SECURITY DELIVERY As an insurer with a respected brand, global reach, local presence and expert underwriting knowledge, we understand how the sector works and what you need from us. We know the risks faced, how to identify customers and prospects exhibiting the best risk management practices and where the most profitable opportunities are for you. Our Real Estate team is empowered to deliver a fast and tailored response to individual and complex risks and has the capacity and focus to help you maximise your opportunities. REAL EXPERTISE DELIVERED LOCALLY LOCAL MARKET KNOWLEDGE & PRIORITY HANDLING: Our dedicated expert underwriters deliver a fast, tailored response to brokers. Together they form a UK-wide real estate business with a consistent appetite and rating approach. Our extensive overseas networks also cover UK property investors expanding their portfolio internationally. Zurich s in-house Legal Indemnities team offers insurance solutions to a wide range of title, lease and planning problems such as defective title, restrictive covenant, rights of light, chancel repair liability and judicial review risks. REAL CUSTOMER UNDERSTANDING Because we know Real Estate so well, we have been able to identify and focus on specific customer types and their attitudes towards risk. So you can clearly see where our appetite lies and understand just what triggers customer engagement. REAL RISK INSIGHT In today s complex world, the scope of risk management has moved beyond pure insurance and into other important areas such as preventative practice, compliance, risk strategies and further issues such as legality and the environment. Even the insurance claims process now requires far more business critical expertise and sensitivity. That s where Zurich s range of specialist risk management and trusted third-party expert services can add real value, offering a wider view of how customers can protect themselves and their assets securely and completely. Speak to your local Zurich Real Estate contact about the solutions available. NEXT: EMERGING RISKS

9 EMERGING RISKS 9 EMERGING RISKS Real risk in real estate: With an ever-changing risk landscape, Real Estate customers need your expertise to ensure their assets are properly protected. UNDERINSURANCE Many customers are significantly underinsured leaving them at risk of a shortfall in claims payments. This may occur because a firm s portfolio assets have risen in value without them fully realising or because a firm has underestimated the value of their properties. Our proactive risk-evaluation expertise can help giving peace of mind that cover is sufficient. MORE INFORMATION LONG-TERM UNOCCUPANCY Zurich regularly receives metal theft claims in unoccupied buildings where the damage caused often approaches 20% of the total value of the whole property. MORE INFORMATION FINANCE Banks and lenders require protection against a borrower s actions or failings and may require control of claims settlement money. Lending has become trickier to secure and banks are increasingly attempting to de-risk lending by putting stricter conditions on their customers, who are negatively impacted as a result. Zurich can provide guidance on this. MORE INFORMATION TITLE AND PLANNING ISSUES The upturn in the economy is generating increased activity in terms of buying selling and development of property - lifecycle stages that can require title and planning considerations. Rights to light is an example of an emerging risk at development phase. MORE INFORMATION ENERGY PERFORMANCE AND SUSTAINABILITY Under the Energy Act 2011, from April 2018, it will be unlawful to let properties that fail to achieve a prescribed minimum energy performance standard (MEPS) until qualifying improvements have been carried out. These need to be factored into potential rebuild costs of insured premises. Zurich policy wording covers these and we offer third-party expertise on Energy Performance Certification and Display Energy Certificate compliance. MORE INFORMATION NEXT: COVER

10 COVER 10 COVER Within the Real Estate market, there are clear segments which we want to write business in, and within those, customer behaviours that make for favourable business opportunities for brokers. We have wide policy covers available and can deliver tailored covers for our customers. COMMERCIAL RESIDENTIAL MIXED (COMMERCIAL & RESIDENTIAL) DEVELOPERS INTERNATIONAL

11 COVER COMMERCIAL 11 COMMERCIAL Property Owners or Investment/Pension Funds with a predominant investment strategy e.g. Retail, Office, Industrial/Warehouse, Managing Agents who manage Portfolios for single clients and self-managed commercial property portfolios. TYPICAL RISK TRAITS High level of investment to protect Proactive in protecting their property Keen to protect their reputation Longer term interest in their assets PROPOSITION HIGHLIGHTS Fire Damage: Zurich has broad loss-prevention expertise that can greatly enhance the ability to manage out/minimise exposures pre and post loss Waiver of condition of average: provided the insured undertakes a valuation programme as detailed in the policy Loss of market value: allows for optional payment of a cash settlement Privity of contract: Zurich will cover this unforeseen liability to provide indemnity arising from a building previously sold on Adaptation Cover- energy performance and sustainable buildings: Emerging technologies mean even the newest buildings can be improved. This clause allows improvements to be included in reinstatement works to improve performance. It also covers the increased costs incurred where alternative materials are used due to environmental reasons Newly acquired buildings: Provides cover for new purchases (to an agreed limit) on condition that we are identified as soon as possible Inadvertent omission to insure: This provides cover for buildings and rent inadvertently uninsured Legal contingencies: Zurich offers automatic cover for a wide range of frequently encountered title and lease defects. This protects against associated legal expenses and damages. Speak to your local Zurich Real Estate contact about the solutions available. POLICY BOOKLET POLICY SUMMARY NEXT: RESIDENTIAL

12 COVER RESIDENTIAL 12 RESIDENTIAL The policy is suitable for residential property owners, aimed at both single blocks and portfolios; however we can tailor some covers to suit your customer s needs. We are focussed upon residential portfolios that are professionally and actively managed. The majority of the property should be long leasehold with professional tenants and low levels of vacancy. The portfolio will lend itself to a long-term riskmanagement strategy, mitigating the effects of attritional loss and alleviating the catastrophic perils of flood and subsidence. TYPICAL RISK TRAITS Proactive in respect of property protection in particular in relation to escape of water Long-term interest in their assets Need to uphold their professional reputation and good name FOR CAPTIVES Focus upon risk management and loss frequency Large investment to protect PROPOSITION HIGHLIGHTS Alternative Accommodation & Loss of Rent/ Cash allowance: Many customers have tenants in premier level buildings and accommodation. Following a loss it is often desirable and may be necessary, to minimise disruption for these valuable tenants, to find similar alternative accommodation nearby. We will increase the policy limit for this aspect of cover to reflect the increased costs necessary to meet the expected standards. To be equitable, we will also extend the policy to include a cash payment in lieu for leaseholders who prefer not to take the alternative accommodation offered Illegal Cultivation of Drugs: This policy covers the damage from the cultivation of illegal drugs as long as the landlord takes reasonable precautions to manage and monitor the premises. Speak to your local Zurich Real Estate contact about the solutions available. POLICY BOOKLET NEXT: MIXED (COMMERCIAL & RESIDENTIAL) POLICY SUMMARY

13 COVER MIXED (COMMERCIAL & RESIDENTIAL) 13 MIXED (COMMERCIAL & RESIDENTIAL) Property Owners or Investment/Pension Funds with neither residential nor commercial predominating, Managing Agents who manage Portfolios for single clients and Self-managed property portfolios and organisations which own and manage non rural estates. TYPICAL RISK TRAITS Proactive in protecting their property Longer term interest in their assets Need to uphold their professional reputation and good name Focused upon adequate reinstatement cost assessment PROPOSITION HIGHLIGHTS Fire Damage: Zurich has broad loss-prevention expertise that can greatly enhance the ability to manage out/minimise exposures pre and post loss Waiver of condition of average: provided the insured undertakes a valuation programme as detailed in the policy Loss of market value: allows for optional payment of a cash settlement Privity of contract: Zurich will cover this unforeseen liability to provide indemnity arising from a building previously sold on Adaptation Cover- energy performance and sustainable buildings: Emerging technologies mean even the newest buildings can be improved. This clause allows improvements to be included in reinstatement works to improve performance. It also covers the increased costs incurred where alternative materials are used due to environmental reasons Newly acquired buildings: Provides cover for new purchases (to an agreed limit) on condition that we are identified as soon as possible Inadvertent omission to insure: This provides cover for buildings and rent inadvertently uninsured Legal contingencies: Zurich offers automatic cover for a wide range of frequently encountered title and lease defects. This protects against associated legal expenses and damages. Speak to your local Zurich Real Estate contact about the solutions available. NEXT: DEVELOPERS POLICY BOOKLET POLICY SUMMARY

14 COVER DEVELOPERS 14 DEVELOPERS Developers and builders of new properties who can either be described as major or mid-market businesses. These firms may be involved with Commercial and/or Residential property and their activities will tend to fall into at least one of the following categories, that: Retain properties for commercial return/growth by acting as landlords and drawing rental income - e.g. certain larger developers with stronger balance sheets Build and then sell on for short-term realisation of financial benefit -e.g. house builders, smaller commercial units To varying extents, do business in both the above ways - e.g. housing stock sold on completion but blocks of flats retained, or vice versa. Should the customer choose not to reinstate, we can help by identifying a number of alternative options for settlement including reduction in market value Contract Works: If a loss occurs during refurbishment of a property the materials for the refurbishment may not have been covered under the original policy. We provide clear, automatic and free cover for minor refurbishment and extension work Workmen: Zurich allow minor works to be conducted without affecting the cover or increasing the premium during the process. PROPOSITION HIGHLIGHTS: Legal Contingencies: Zurich covers for a wide range of frequently encountered legal problems under the Property Owner s policy. This protects against associated legal expenses, damage and loss in value if a third-party claim is made Loss of Market Value: Following a loss the insured customer may require flexibility in the way they reinstate building or the site, rather than simply replicating the existing structure. Speak to your local Zurich Real Estate contact about the solutions available. POLICY BOOKLET POLICY SUMMARY NEXT: INTERNATIONAL

15 COVER INTERNATIONAL 15 INTERNATIONAL This policy is designed for all UK domiciled property owners and managing agents insuring portfolios of let property both in the UK and overseas and cover can be tailored for the types of property insured. These are sophisticated investors who are able to extend their investment strategy across borders. They have the unique requirement that their insurance protection operates in a fully compliant manner in multiple territorial jurisdictions. Local service and risk management support are often key needs. PROPOSITION HIGHLIGHTS: Global Capability Zurich have the capability to reach over 200 territories, through a global network of owned, licensed facilities and trusted partners. We also use an integrated global network tool to give customers the confidence of a fully compliant solution with local insurance laws and tax regulation- as well as tracking policy and invoice issuance to ensure the efficient delivery and movement of premium According to the territories within which the insured assets are we can duplicate the proposition highlights shown under Commercial. These are delivered via a Global Master policy issued alongside Good Local Standard contracts. Speak to your local Zurich Real Estate contact about the solutions available. POLICY BOOKLET POLICY SUMMARY NEXT: LEGAL INDEMNITIES

16 LEGAL INDEMNITIES 16 LEGAL INDEMNITIES Protect your customers against legal and planning issues that can affect the value and potential development or security use of their assets. This covers known issues that put the customers in control and adds an additional income stream for brokers. Our in-house legal indemnities team provides insurance for a wide range of title, lease and planning challenges, including defective title, restrictive covenant, rights of light and others. Provides cover for the most common legal issues surrounding properties. Peace of mind and a more integrated insurance programme. Protection against third party claims. Policies for all types of properties, both residential and commercial. HIGHLIGHTS Lost title documents, access and services, rights of light, restrictive covenants, defects in titles, chancel repair liability, and leasehold problems Problems that arise during the administration of a deceased s estate or in connection with a trust funds (including trustees potential liability following a winding up) Indemnity in respect of lost documents such as share certificates and life policies. Speak to your local Zurich Real Estate contact about the solutions available. NEXT: ADDING VALUE

17 ADDING VALUE 17 ADDING VALUE Real Estate goes way beyond the remit of insurance. To keep their assets safe, customers increasingly need to fully understand the current and emerging risks they face. Recognising this as an opportunity for brokers to win and retain customers, Zurich provides you with a whole range of wider risk-related products and services, provided either by us or recognised leaders in other fields. So you have all the expertise you need to become a one-stop service for total risk protection and peace of mind. Risk Management Engineering Inspection and Protection Directors & Officers Indemnity (D&O) Global Capability Property Disputes: DAS can provide legal expense solutions to time consuming and potentially damaging dispute situations, such as repossession, property damage, debt recovery and rent and lease issues. Valuation Advice: Gleeds specialises in valuing properties to make sure they re not underinsured and helping property owners save tax on capital allowances. Speak to your local Zurich Real Estate contact about the solutions available. Beyond Zurich, we can harness the expertise of recognised brands in other risk-related fields to assist in the safeguarding of real estate businesses for all customer types. Legal issues: DAC Beachcroft offers a Legal Health Check to help customers understand their legal risks and the impact of legislation on various aspects of a Real Estate business. NEXT: CLAIMS Environmental efficiency: Environmentally4See can help Real Estate customers to adopt best practice in energy and sustainability in ways that improve their risk profile and help future proof their property assets.

18 CLAIMS 18 CLAIMS Because property owners and investors present unique challenges in claims, we have a claims proposition that supports our brokers and customers. We have expert, dedicated UK teams for property and casualty claims, backed up by our specialist technical teams. We make sure we keep it simple for customers and brokers through: Dedicated & specialist claims teams with specific areas of expertise Expertise in handling non-standard property claims and legal indemnity claims A Major Loss team to proactively manage large property claims Defending claims can be a difficult and costly business. That s why we have specialist teams to help by providing: In-house claims inspectors with a particular focus on casualty incidents A Complex Injury team to deal with the worst injury claims A wide and deep technical expertise A market leading Fraud Detection and Prevention team, all backed up by expert legal partners Claims Account Managers (CLAMs) for our larger customers All of this means that overall we aim to minimise disruption and loss to our customers and ensure each and every claim is dealt with proactively at the earliest stage. CLAIMS ARTICLE NEXT: MAJOR CUSTOMERS & INTERNATIONAL PORTFOLIOS

19 MAJOR CUSTOMERS & INTERNATIONAL PORTFOLIOS 19 MAJOR CUSTOMERS & INTERNATIONAL PORTFOLIOS WE DON T JUST OFFER OUR MAJOR CUSTOMERS INSURANCE Understanding how critical major companies are to their customers and shareholders, we build bespoke risk management, and agreed service solutions around them. With a recognised market presence, Zurich has an in-depth understanding of the key issues and relevant risks associated with major companies. We excel in providing solutions for complex risk issues, which complement our comprehensive insurance covers. We re also experts at protecting businesses across a broad section of the corporate environment, helping our Major Customers use risk best practice to reduce costs and increase the likelihood of achieving their business goals. Much of our risk-related expertise goes way beyond insurance, providing comprehensive protection across the many aspects of business risk an organisation may face. UNDERWRITING EXPERTS Evaluating risk, tailoring cover and wordings, addressing new and emerging risk, writing complex risk to ensure the most appropriate insurance protection. RISK MANAGEMENT SUPPORT Identifying risk, guidance on best practice control, developing risk management strategies, reducing total cost of risk. CLAIMS ACCOUNT HANDLER Assisting customers and containing claims cost through promotion of best practice procedures. ADDING VALUE Consultancy & advice from specialists on wider riskrelated issues such as law, litigation, environment, crisis management, loss adjustment, tax efficiency. INTERNATIONAL PORTFOLIO All of the capability that supports the insurance provision of assets in the UK is brought to bear for property abroad owned by UK domiciled investors. International investors require fully compliant insurance solutions with local representation. They are sizeable enterprises with complex needs, so require a bespoke solution. Need fully compliant solution Need multi-national risk knowledge and awareness Need accessibility to risk management expertise We have the capability to reach over 200 territories, through a global network of owned, licensed facilities and trusted partners. We are also able to utilise an integrated global network tool to give customers the confidence of a fully compliant solution with local insurance laws and tax regulation as well as tracking policy and invoice issuance to ensure the efficient delivery and movement of premium. NEXT: KEY CONTACTS

20 KEY CONTACTS 20 KEY CONTACTS LEADERSHIP TEAM LEADERSHIP TEAM & BRANCH KEY CONTACTS BRANCH KEY CONTACTS David Carey ACII Head of Real Estate Insurance Mobile: Alan Thorpe National Trading Manager Mobile: Jonathan Scotcher Underwriting and International Manager Mobile: Colin Prince Deputy Underwriting Manager Mobile: Christina Wesley ACII Real Estate Claims Account Manager Mobile: Ian Parker Strategic Development Manager Mobile: London Brendan Donlon Managing Underwriter International Team Mobile: Dean Sapsford Real Estate Insurance Mobile: Sean Charlton Trading Manager Mobile: Manchester Andrew Kay Regional Manager - North andrew.kay@uk.zurich.com Mobile: Belfast Paulette Bennett Market Underwriter paulette.bennett@uk.zurich.com Mobile: Birmingham Steve Bunning Trading Manager steve.bunning@uk.zurich.com Mobile: Bristol Joanne Drayson Managing Underwriter joanne.drayson@uk.zurich.com Croydon Paul Sampson Trading Manager paul.sampson@uk.zurich.com Mobile: Glasgow Pauline White Managing Underwriter pauline.white@uk.zurich.com Mobile: Leeds Jonathan Craker Managing Underwriter jonathan.craker@uk.zurich.com Mobile: Dave Bushell Regional Development Underwriter - North dave.bushell@uk.zurich.com Mobile: Newcastle Len Curry Development Underwriting Manager len.1.curry@uk.zurich.com Mobile: LEGAL INDEMNITIES Valerie Hosty Legal Indemnities Manager valerie.hosty@uk.zurich.com Mobile: Stuart Burley Senior Market Underwriter Development stuart.burley@uk.zurich.com Mobile:

21 Zurich Insurance PLC A public limited company incorporated in Ireland Registration No Registered Office: Zurich House, Ballsbridge Park, Dublin 4, Ireland. UK Branch registered in England and Wales Registration No. BR7985. UK Branch Head Office: The Zurich Centre, 3000 Parkway, Whiteley, Fareham, Hampshire PO15 7JZ Authorised by the Central Bank of Ireland and subject to limited regulation by the Financial Conduct Authority. Details about the extent of our regulation by the Financial Conduct Authority are available from us on request. These details can be checked on the FCA s Financial Services Register via their website or by contacting them on Our FCA Firm Reference Number is Doc code: UKGI654