Let me give you an example the question is asked “Is it in an area that has flooded or is likely to flood?”  Now, there is no history of it ever flooding despite the stream, at the bottom of the garden so the question is answered “no” in all honesty.  There are subsequently heavy rain storms, the fields all get saturated and the excess water runs into the already over burdened stream which then bursts its banks and floods the property.  There is every chance the insurer may not pay the claim due to a non-disclosed material fact.  This is an easily avoided problem.  If you are ever unsure about whether the insurer needs to know something, tell them.  I for one would prefer to be given too much information than not enough.  If the information truly doesn’t affect the policy then it will also not affect the price.  If it does turn out to be relevant, you may have to pay a bit more, have a higher excess or other terms applied but at least you will have the right cover when you actually need it should a claim occur.

There is no better expression for this than it’s better to be safe than sorry.

This particular subject matter is very contentious, in fact we deal wih over 10 insurers for let property and some of our panel will honour the claim and some will not.

Why?

The reasons vary based upon the individual insurers contract and their own experiences, but cannabis factories is a relatively new problem and these cases are still being tested in the courts, if your property was damaged by fire from the heating used to cultivate your tenants cannabis farm how would you feel?

What I would like to know from you is: -

Did you have any idea this eventuality may not be covered?

Would you expect this eventuality to be covered?

Should the property not have been visited by you or your manageing agent?

Subject to your feedback we will get on and do something about it.

Richard

You would have heard of Energy Performance Certificates but did you know these have been extended to commercial properties from October? If you are the owner of a non-domestic building that is to be sold or let, you will, from the 1^st October, require a valid energy certificate. Previously these certificates have only been required for residential properties.

This means that in order for you to move quickly in the event of selling or letting any of your property portfolio, you will need to have the appropriate certificates in place.

The certificates provide information on the energy and carbon efficiency of your building to a prospective tenant or purchaser and range from ‘A’ to ‘G’ where ‘A’ is the most efficient with the average to date of domestic properties being ‘D’.

The government has put together some guides for both owners of non-dwellings (link to http://www.communities.gov.uk/publications/planningandbuilding/nondwelling) and domestic landlords (link to http://www.communities.gov.uk/publications/planningandbuilding/epcsforlandlords)

Here at cover4letproperty we would suggest using a specialist supplier such as bureau veritas (link to http://www.bureauveritas.co.uk/index.html) to carry out a site-survey of work prior to EPCs being required.

Nick Blunden

Director Cover4letproperty