Factors affecting property insurance premiums - Revision history

Editor at 15:05, 11 February 2022

2022-02-11T15:05:51Z

← Older revision		Revision as of 15:05, 11 February 2022
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	In the case of a residence, reducing the time it is left empty (e.g vacations) can lead to lower premiums. Some policies require a house or flat to be left empty for no more than 60 days per year.		In the case of a residence, reducing the time it is left empty (e.g vacations) can lead to lower premiums. Some policies require a house or flat to be left empty for no more than 60 days per year.

−	= Related articles on Designing Buildings ~~Wiki~~ =	+	= Related articles on Designing Buildings =

	* 3D animation for insurance risk analysis.		* 3D animation for insurance risk analysis.
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	* Excepted risk.		* Excepted risk.
	* Flood insurance.		* Flood insurance.
		+	* Flood Re.
	* Future of construction insurance.		* Future of construction insurance.
	* Indemnity to principals.		* Indemnity to principals.

Designing Buildings at 07:16, 8 February 2021

2021-02-08T07:16:25Z

← Older revision		Revision as of 07:16, 8 February 2021
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	* Warranty.		* Warranty.

−	[[Category:Construction_management]] [[Category:Contracts_/_payment]] [[Category:Cost_/_business_planning]]	+	[[Category:DCN_Commentary]] [[Category:DCN_Guidance]] [[Category:Construction_management]] [[Category:Contracts_/_payment]] [[Category:Cost_/_business_planning]]

Designing Buildings at 09:40, 2 August 2019

2019-08-02T09:40:15Z

← Older revision		Revision as of 09:40, 2 August 2019
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	= Introduction =		= Introduction =

−	Buildings and contents insurance can provide owners with a level of security and remuneration following ~~various~~ adverse events~~. These may include~~ fire, flooding, settlement, structural collapse and public liability.	+	Buildings and contents insurance can provide owners with a level of security, and potentially, remuneration following adverse events such as fire, flooding, settlement, structural collapse and public liability.

−	However, buildings insurance can be costly and ~~an annual~~ drain on financial resources. It may therefore be in the interests of owners to select and adapt ~~the policy~~ to ensure the best cover at the most affordable cost.	+	However, buildings insurance can be costly and a drain on financial resources. It may therefore be in the interests of owners to select and adapt their policies to ensure the best cover at the most affordable cost.

−	~~= Factors~~ that can affect ~~premiums =~~	+	There are several factors that can affect the ‘premium’ – the annual cost of the insurance policy. These include:

−	~~There are several factors that can affect the ‘premium’ – the annual cost of the insurance policy. These are:~~	+	= Multi-year cover =

−	~~=== Multi-year~~ cover ~~===~~	+	This is the insurance equivalent of buying in bulk. At the outset, it may be possible to arrange a longer period of cover, e.g three years as opposed to annual renewal. This could bring a discount in the region of 5-10% off the premium.

−	This is the insurance equivalent of buying in bulk. At the outset, it may be possible to arrange with the insurer to have a longer period of cover, e.g three years as opposed to annual renewal. This could bring a discount in the region of 5-10% off the premium.	+	= Selecting the perils covered =
−		+
−	=== Selecting the perils covered ===	+

	Adjusting the extent of the perils covered may also reduce premiums. For example, some policies offer cover against vandalism, but a farmhouse on a remote hillside, or a townhouse in a gated development may be at far less risk of vandalism than other properties. It may therefore be possible to exclude vandalism from the policy and thereby reduce the cost of the premium. The same may apply to perils such as riot and malicious damage, impact by aircraft and falling trees.		Adjusting the extent of the perils covered may also reduce premiums. For example, some policies offer cover against vandalism, but a farmhouse on a remote hillside, or a townhouse in a gated development may be at far less risk of vandalism than other properties. It may therefore be possible to exclude vandalism from the policy and thereby reduce the cost of the premium. The same may apply to perils such as riot and malicious damage, impact by aircraft and falling trees.

−	=== Adjusting the extent of cover ===	+	= Adjusting the extent of cover =

	If the property contains expensive jewellery, fine furniture or works of art, it may be possible to reduce the premium by moving these to another location e.g a bank vault or storage facility.		If the property contains expensive jewellery, fine furniture or works of art, it may be possible to reduce the premium by moving these to another location e.g a bank vault or storage facility.

−	=== Reducing the excess ===	+	= Reducing the excess =

−	Generally, insurance policies have an ‘excess’ to be paid in the event of a claim. The excess is ~~what~~ the insured has to ~~pay~~ before the policy pays out. If the policy has an excess of £500, and water leakage causes £1,000 of damage, the insured will only get £500 from the policy as they have to ~~first~~ bear the £500 excess. If on the other hand the damage amounts to £400, it would not be worth making a claim (although the insurer should be notified of the event). The higher the excess the insured is willing to bear, the lower the premium will be~~. This is as true for car policies as it is for buildings insurance~~.	+	Generally, insurance policies have an ‘excess’ to be paid in the event of a claim. The excess is the amount the insured has to cover themselves before the policy pays out. If the policy has an excess of £500, and water leakage causes £1,000 of damage, the insured will only get £500 from the policy as they have to bear the £500 excess. If on the other hand the damage amounts to £400, it would not be worth making a claim (although the insurer should be notified of the event). The higher the excess the insured is willing to bear, the lower the premium will be.

−	=== Group policies ===	+	= Group policies =

−	People over the age of 50 may get reduced premiums through Saga, a specialist insurer for older people. Other group policies exist for owners of historic buildings: churches may get lower premiums through the Ecclesiastical Insurance Group.	+	People over the age of 50 may get reduced premiums through organisations such as Saga, a specialist insurer for older people. Other group policies exist, for example, for owners of historic buildings: churches may get lower premiums through the Ecclesiastical Insurance Group.

−	=== Risk management ===	+	= Risk management =

−	Insurers like to see owners instigate risk management measures aimed at safeguarding a property ~~on various levels~~. Where these are in place there could be lower premiums. Measures can include:	+	Insurers like to see owners instigate risk management measures aimed at safeguarding a property. Where these are in place there could be lower premiums. Measures can include:

	* Smoke and fire detectors;		* Smoke and fire detectors;
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	* Secure approved locks.		* Secure approved locks.

−	=== Managed occupation ===	+	= Managed occupation =

	In the case of a residence, reducing the time it is left empty (e.g vacations) can lead to lower premiums. Some policies require a house or flat to be left empty for no more than 60 days per year.		In the case of a residence, reducing the time it is left empty (e.g vacations) can lead to lower premiums. Some policies require a house or flat to be left empty for no more than 60 days per year.

Editor at 15:23, 26 July 2019

2019-07-26T15:23:26Z

← Older revision		Revision as of 15:23, 26 July 2019
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		+	= Introduction =
		+
	Buildings and contents insurance can provide owners with a level of security and remuneration following various adverse events. These may include fire, flooding, settlement, structural collapse and public liability.		Buildings and contents insurance can provide owners with a level of security and remuneration following various adverse events. These may include fire, flooding, settlement, structural collapse and public liability.

	However, buildings insurance can be costly and an annual drain on financial resources. It may therefore be in the interests of owners to select and adapt the policy to ensure the best cover at the most affordable cost.		However, buildings insurance can be costly and an annual drain on financial resources. It may therefore be in the interests of owners to select and adapt the policy to ensure the best cover at the most affordable cost.
		+
		+	= Factors that can affect premiums =

	There are several factors that can affect the ‘premium’ – the annual cost of the insurance policy. These are:		There are several factors that can affect the ‘premium’ – the annual cost of the insurance policy. These are:

Editor: Created page with "Buildings and contents insurance can provide owners with a level of security and remuneration following various adverse events. These may include fire, flooding, settlement, stru..."

2019-07-26T15:22:17Z

Created page with "Buildings and contents insurance can provide owners with a level of security and remuneration following various adverse events. These may include fire, flooding, settlement, stru..."

New page

Buildings and contents insurance can provide owners with a level of security and remuneration following various adverse events. These may include fire, flooding, settlement, structural collapse and public liability.

However, buildings insurance can be costly and an annual drain on financial resources. It may therefore be in the interests of owners to select and adapt the policy to ensure the best cover at the most affordable cost.

There are several factors that can affect the ‘premium’ – the annual cost of the insurance policy. These are:

=== Multi-year cover ===

This is the insurance equivalent of buying in bulk. At the outset, it may be possible to arrange with the insurer to have a longer period of cover, e.g three years as opposed to annual renewal. This could bring a discount in the region of 5-10% off the premium.

=== Selecting the perils covered ===

Adjusting the extent of the perils covered may also reduce premiums. For example, some policies offer cover against vandalism, but a farmhouse on a remote hillside, or a townhouse in a gated development may be at far less risk of vandalism than other properties. It may therefore be possible to exclude vandalism from the policy and thereby reduce the cost of the premium. The same may apply to perils such as riot and malicious damage, impact by aircraft and falling trees.

=== Adjusting the extent of cover ===

If the property contains expensive jewellery, fine furniture or works of art, it may be possible to reduce the premium by moving these to another location e.g a bank vault or storage facility.

=== Reducing the excess ===

Generally, insurance policies have an ‘excess’ to be paid in the event of a claim. The excess is what the insured has to pay before the policy pays out. If the policy has an excess of £500, and water leakage causes £1,000 of damage, the insured will only get £500 from the policy as they have to first bear the £500 excess. If on the other hand the damage amounts to £400, it would not be worth making a claim (although the insurer should be notified of the event). The higher the excess the insured is willing to bear, the lower the premium will be. This is as true for car policies as it is for buildings insurance.

=== Group policies ===

People over the age of 50 may get reduced premiums through Saga, a specialist insurer for older people. Other group policies exist for owners of historic buildings: churches may get lower premiums through the Ecclesiastical Insurance Group.

=== Risk management ===

Insurers like to see owners instigate risk management measures aimed at safeguarding a property on various levels. Where these are in place there could be lower premiums. Measures can include:

* Smoke and fire detectors;
* Fire-fighting equipment;
* Smoke venting to minimise smoke damage;
* Burglar alarms;
* Lightening protection and
* Secure approved locks.

=== Managed occupation ===

In the case of a residence, reducing the time it is left empty (e.g vacations) can lead to lower premiums. Some policies require a house or flat to be left empty for no more than 60 days per year.

= Related articles on Designing Buildings Wiki =

* 3D animation for insurance risk analysis.
* Building Users' Insurance Against Latent Defects.
* Collateral warranties.
* Contractors' all-risk insurance.
* Contract works insurance.
* Decennial liability.
* Design liability.
* Directors and officers insurance.
* Employer's liability insurance.
* Excepted risk.
* Flood insurance.
* Future of construction insurance.
* Indemnity to principals.
* Integrated project insurance.
* JCT Clause 6.5.1 Insurance.
* Joint names policy.
* Latent defects insurance.
* Legal indemnities.
* Legal indemnity insurance.
* Non-negligent liability insurance.
* Performance bond.
* Professional Indemnity Insurance.
* Public liability insurance.
* Residual value insurance.
* Reverse premium.
* Specified perils.
* Subcontractor default insurance (SDI).
* Warranty.

[[Category:Construction_management]] [[Category:Contracts_/_payment]] [[Category:Cost_/_business_planning]]