There are a numer of things one needs to remember and to enquire about on this subject.
First: what should it cover ?
- From an owner's [freeholder or leasholder] perspective:
- Cost of REBUILDING - that is NOT the same as the value of the property when bought or sold.
- Costs you incur because your property is untenable - it might be your costs or those of a tenant if it is let out - principally the costs of temporary accomodation.
- Cover for THIRD PARTIES - or Public Liability. For example if a Care Worker falls down the stairs and makes a claim.
Second: CHECK the terms and conditions of the policy. Typically:
- Water - what type of leak is covered and what isn't?
- Subsidence - very often an exclusion exists for "made up ground".
- Making sure your building meets the "Building Regulations". This is a general exclusion - much of the repair and replacement work that Peverel undertakes does NOT meet the appropriate regulations. It is a very common clause, and is a very reasonble one. If you have a car you have to have it INDEPENDENTLY tested and certified before it is allowed on the road - the same is NOT true of your property.
Note: you will find all sorts of other cover which is to protect Peverel and other interested parties.
Question: WHY should an owner be paying to protect someone else's interests ?
If you are in any doubt, get a copy of the following documents:
- The Insurance Policy - may be 20 or 30 pages long
- Any "Attaching Endorsements" which alter the terms of the policy - such as what may be meant by the word "Unoccupied"
- The Certificate of Insurance, or Specification. This will give the details that you may need:
- the name of the insurer,
- policy number,
- the insured parties,
- the name of the building covered,
- the period of cover,
- a summary of the cover: but READ the policy for the EXCLUSIONS,
- the excesses, etc.
- The title deeds for your property which may specify the scope of the insurance that you have an obligation to provide.
Having got this information take it to someone who knows what they are talking about for their opinion: your solicitor or an insurance agent for example.