Prime Purchase is pleased to include guest blogs from our breadth of contacts. Covering many different aspects of the property market, we hope that you will be interested in hearing from our guest contributors.
Risks to be aware of when arranging insurance cover
19 April May 2015
George Seatter is a director of SPF Private Clients. They advise clients on making sure their general insurance needs are adequately covered, competitively priced and structured appropriately.
Renovations and Development Works – Do you have the right cover in place?
Buying a new property is an exciting time but insurance requirements are often overlooked.
Did you know that if you are undertaking building works and renovations you need a specific insurance policy? Most insurers will not cover these and if they are not disclosed your insurance policy is void.
It is important to consider this before purchasing a property to allow enough time to get a fit-for-purpose policy in place. Most standard insurance policies exclude properties that are left empty for more than 30 days at a time. There are insurers who specialise in providing cover for unoccupied properties and properties undergoing works, offering peace of mind that should anything happen during this time you are protected.
They also offer the flexibility for prolonged periods of un-occupancy to make sure the cover is suited to changing circumstances and lifestyle – perhaps the house will be empty before the renovations start or empty while the works take place. Again, this is something conventional insurers cannot accommodate and not declaring so can render your policy void.
Second Properties/ Holiday Lets – Are they protected?
If you are buying a second property or holiday home, you will also need specialist cover. Insurance companies view such properties as a bigger risk than a main residence because they’re typically left empty for longer periods of time. This makes them a higher risk for burglary and squatters as well as weather-related damage. In winter, a frozen pipe could easily burst in an empty property, or tiles could be blown off the roof, with it taking some time before this is realised and measures put in place to prevent further damage.
There are also factors to consider when letting any property to paying guests, as there are additional liability exposures and increased risk of damage. These are all things that can be catered for but it is important you disclose this information so that your insurer can best advise you of the appropriate cover.