Chapter 5 Flashcards
Does using your home for clerical Administration work class as business use to your home insurance?
No.
You need to declare business use if you have face-to-face client visits, makes or sells goods at home and store these items particularly if valuable or hazardous, you’re offering services from home for example childminding dog grooming, You have modified your home and using an outbuilding as a home office or acquired business equipment belongs to you that is an employers responsibility
List policy covers for a home business policy?
Business equipment and stock limit £5000-£7500. Cover for stock is usually limited to £1000
Portable business equipment outside the home £2500
Business money limit £1000 if kept in a safe if not in a locked safe cover Ltd £500
PO cover £2 million
Employers liability £10 million
What additional levels of cover would you get from a standalone business policy?
Higher levels of cover, legal expenses, products liability, professional indemnity, book debts, full business interruption cover, goods in transit, personal accident
Since year 2000 2nd home ownership has increased by what percentage?
30%
Why are second homes and holiday homes a high risk for insurance companies?
They are often left on occupied for longer periods of time and therefore more vulnerable to damage by theft, arson and malicious damage. There is also a higher chance of burst pipes through freezing and increases where properties are unheated during the winter months
What are some of the additional requirements an insurance company may ask of owners with second homes and holiday homes to make sure they are fully covered?
External doors fitted with minimum security requirements
Weekly inspections of property by responsible person
Exclusion of theft of valuables items and money if I’m occupied for a period in excess of 48 hours
Turning off water supply in winter months (November to March inclusive) draining water and heating systems or leaving heating on low to prevent freezing
Turn off gas and electricity supplies at the mains if no alarm is fitted
What is the commonhold and leasehold reform act 2002
Leaseholders of blocks of flats with a lease that was originally granted for more than 21 years have the right to take over the management of the building, including arranging insurance
Why do insurers prefer to ensure blocks of flats rather than individual flats?
It is often difficult to establish the individual rebuilding cost of a single flat. Also the lessee of a flat may have a responsibility under the terms of the lease for parts of the building which they do not occupy.
If there is damage to the buildings which makes the flats uninhabitable what cover is provided under blocks of flats insurance?
Loss of rental income is covered and this may include the reasonable cost of temporary alternative accommodation for the residents his flats have become uninhabitable
What additional extensions can be included in block of flats insurance?
Cover for contents of communal areas
Loss of rent following an insured event
Glass and locks replacement
PL cover up to £5 million applies but can be increased for additional premium
EL cover £10 million
Engineering cover for lifts and communal boilers
Some tenant groups are more difficult to ensure than others. Which groups are these?
Unemployed people
Students
Those in receipt of housing benefits
Asylum seekers
What is the defective premises act 1972?
This states that the landlord is liable to all tenants and their visitors who might reasonably be expected to be affected by defects in the state of the premises. The Act makes the landlord fully liable to the tenant
What characteristics represents a high net worth household?
A high level of disposable income and or investments
Live in high value properties in the country often listed buildings or of unusual construction
And collections of art, antiques and wine
Own stylish apartment in the city
Drive prestige cars
Where expensive items of jewellery
Take regular holidays abroad
