Home Insurance with Subsidence History
Trying to get home insurance for properties with previous subsidence history or underpinned houses can be a difficulty challenge for the home owner. Most standard house insurance companies will not provide quotes for subsidence insurance.
Tenants Insurance | Why Rent
Cheap tenants insurance for those living in rented accommodation.
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Tenant insurance policy holders will include prospective first-time buyers trying to save a deposit, but could also include people who have sold a property but have not found the dream home they are seeking.
In such a situation, renting makes a lot of sense: it gives the tenants content insurance customer the chance to see what it is like living in an area where they may buy and to see what facilities and schools are like. They can then make an offer on a property as a cash buyer, rather than someone with a property chain dragging along behind them.
Another trend is for older people who choose to rent in the later part of their lives so that their outgoings are predictable and they can live within a set budget, possibly having sold the house that they owned.
There will, of course, also be some free spirits who choose to rent, preferring the flexibility it offers compared to that or living as an owner-occupier. They benefit from not being responsible for the maintenance of the property, so they can plan their finances very well because all the other costs related to accommodation (rent, tenants contents insurance and bills) are predictable.
TEMPORARY ACCOMMODATION
Another reason why tenant insurance policy holders rent is if your job moves to a different part of the country, perhaps temporarily, or that you are not confident will be a permanent arrangement. It makes sense to take a room or a small flat rather than go through the financial and emotional hassle of buying a property that you may need to sell in the near future. If you are considering moving to a new area, renting for six months to see what it is really like is an investment in your quality of life: if you find out that you don’t like the area, you can move to another one far more easily than if you had bought property.
Two other groups of people that require temporary accommodation are students who are unlikely to be able to afford a property, often go to college away from home, returning for holidays.
Many people don’t think about taking a holiday cottage as rental accommodation, but it is, in its truest form, going away for a few weeks and staying in a property by the sea or a remote area of the country, or abroad.
The advantage of renting temporarily is that it can be a safer bet in times of economic uncertainty. If you invest in a property when prices were high, a fall in the market – as happened in the early 1 990s – can mean you lose money on your investment, whereas rental prices are typically less volatile.
However, the disadvantage of renting in a rising property market is that you are not getting any return for your money apart from a roof over your head. Rent payments are ‘dead’ money, while the price of the property you might eventually want to buy will go up, possibly out of your range.
It is important to decide from the start whether you are just looking for accommodation for yourself or with others. Some people thrive on living on their own, others find it lonely. If you don’t have a live-in partner, you could still look for two-bedroom properties with a friend or relative.
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Timber Frame Construction
In recent years, there has been resurgence in the use of timber frames in the construction of new buildings. This has obviously posed some interesting challenges for home insurance companies. Most traditional insurers will usually shy away from this type of risk but however there are some providers that excel in non standard home insurance policies including timber framed house insurance.
This has coincided with a number of high profile fires relating to timber frame buildings which has led to concerns surrounding the risks relating to such construction.
The resurgence in the use of timber frame construction has been driven by a combination of factors. Its green credentials mean the government is increasingly keen for it to be used in both private and municipal builds such as new affordable housing, university accommodation and hotels. Time efficiency is also a factor as timber frames are believed to be significantly faster to use on site and cheaper than conventional methods of construction.
The rapid increase in the use of timber frames has gone hand in hand with its use in a wider variety of builds, especially in multi-storey buildings. As a consequence, the cost of such fires can be considerable. Given the clear advantages in using timber frame, its popularity is likely to continue to rise and claims costs will continue to escalate unless measures are taken to control the associated risks.
The major risks lie in the construction phase and if fire gets hold at this point, damage is likely to be extensive. While the focus is largely around the major fire potential, there are also wider liabilities to consider. Burning embers can spread from the contract site to neighbouring properties and the potential liability exposure can vary significantly dependent upon the site location which in turn will have a strong influence on the level of exposure and underwriting approach required.
A number of high profile fires have brought the issue to the fore with the Health and Safety Executive estimating that there are approximately 11 construction fires a day. Concerns are also being expressed within government, by the Chief Fire Officers Association and the Fire Protection Association.
For any type of non standard home insurance cover, at Active Insurance we have the products and expert knowledge to satisfy the demands of most home owners.
Commercial Property Insurance
Many commercial property owners are not only looking to save on their insurance but also require comprehensive buildings insurance cover that will provide protection against the many risks that commercial premises are exposed to. We, at Active have a vast knowledge of commercial property insurance and can cater for the needs of landlords with a single shop thats rented and to commercial landlords with a portfolio of commercial and residential buildings.
Typical commercial buildings insurance policies available:
- Shops and Office – let or owner occupied
- Shops and Offices – with residential accommodations / flat above
- Unocupied commercial property – such as a vacant pub, shop, office, warehouse and industrial units
- Office blocks with multiple tenants
- Warehouses, factory, distribution and processing plants
- Shopping centres and commercial shop parades
- Function halls such as weddings, party’s and conference centres
- We can cater for almost any type of commercial premises insurance
Vacant Home Insurance Cover
Many home owners realise that buildings and contents insurance cover is essential for their financial protection. What home owners are not aware of is the fact that most home insurance policies will not provide any cover if the home is vacant or if they do provide cover then this if often very limited. Typical home insurance policies will allow full cover whilst the property is vacant for up to thirty days. However this is not the case with all home insurance providers, so do check your documents if you home is going to be vacant for any length of time. There are specialist vacant home insurance providers who will provide cover for unoccupied buildings and the contents within the premises.
So why do most conventional home insurance providers do not offer any cover on houses that are vacant. The main reason is that vacant homes pose a greater risk for claims resulting from theft, malicious damage, escape of water and vandalism. Most home insurance providers only specialise in standard risks and as such offer no cover on vacant homes. They still offer a certain number of days of cover whilst your home is vacant but each insurer have their own limits on the number of days the property can remain unoccupied for. Some will restrict the level of cover to a very basic cover whilst the home remains vacant.
Insurers that specialise in vacant property insurance will normally provide an annual policy but there are some unoccupied property insurance policies available for shorter terms such as 3, 6 or 9 months. Most of the vacant home insurance policies will have some conditions which the policy holder has to adhere to. These can include for the vacant home to be inspected at least once a week by yourself or an authorised representative. You will be informed of all the conditions that apply to a vacant home insurance policy during the initial quote stage. If you obtaining the unoccupied home insurance quote online then you must read the documents and make sure you understand exactly what the policy provides cover for and what your duties are.
Numerous reasons exist as to why a vacant home insurance cover is required. A long holiday or a temporary job employment overseas could result in the property being empty for an extended length of time. Perhaps the property is on the market to be sold or you are a landlord and are looking for new tenants. Whatever the reason maybe, you must make sure that you have adequate buildings insurance cover in place and that the insurance policy will offer protection in the event of a disaster occurring such as fire.
As with most types of insurance, increasing the policy excess can reduce the premium of the vacant property insurance. Underwriters will also provide favourable terms for empty homes that meet their full security requirements such as a working intruder alarm system and key operated window locks fitted on all accessible windows.
An important point to note is that you must provide accurate information to the insurers when getting a quote for your vacant home. Any material fact that is withheld and not disclosed could lead to a claim or part of a claim not being paid.
Active Insurance (Agents) is a UK leading specialist vacant home insurance broker for both residential and commercial unoccupied properties. Compare, quote and buy online.
