Image: Courtney Adamo
The benefits of having one point of contact for all your insurance needs allows for a more streamlined and stress-free process.
Michael was introduced to us when he purchased a home and wanted to re-model.
When undertaking anything other than re-decoration you need to insure. However, insurers don’t like to cover building works. Most homeowners are surprised to hear this. Contractors cause damage both accidental and through negligence.
Front page examples are Notre Dame Cathedral which burned down. And St. George’s chapel Windsor which was undergoing work when it caught fire. Fire is the main risk when construction is under way.
Have you ever walked past a demolition site and wondered why they are spraying water even when the building is being demolished? – Sparks can fly.
So, Insurers are fully aware of increased risk of fire. They are the first point of contact when something suffers significant damage. That is after the emergency services have finished. They also investigate what causes the damage, who has been around and when they start.
We, ourselves, have dealt with a number of incidents when construction workers are slap dash at best and negligent at worst.
A Crazy Example
One crazy example is a contractor who hit a cable whilst digging outside a property. When they were asked why they didn’t use the cable finder (which alerts the presence of underground cables) before they started digging, the answer was “the cable shouldn’t have been there”.
The contractor followed that up with a claim against his employer alleging his burns were caused by the employer’s negligence. Southern Electric issued a bill of around £20k for repairing the cable.
So insurers treat renovations and building works as high risk because fire is catastrophic. Which means there are few insurers willing to take on the risk of catastrophic damage. Those that will cover construction require a high level of detail and scrutinise the Building Contractors.
Michael was delighted when we were able to find him a willing underwriter. We advised him, his architect and contractor with what they needed to do to get the insurance to work. And we arranged a policy that gave him the financial protection he needed and the re-assurance he desired in order to sleep at night.
A New Beginning
After spending some years in London the Adamo family embarked on a round the world trip. This took them across continents and via their homeland in the USA eventually arriving in Australia where they settled. We were able to help Michael with travel insurance; because, as you can imagine, cheap off the shelf travel insurance wouldn’t have provided the assistance a family needs when the worst happens.
Whilst the family had a gap year (here’s their travel blog) Michael wanted to protect his assets and his income from sweating (or in this case “letting his assets”). He was again delighted (here’s Michael’s testimonial) when we were able to provide recommendations because not all insurers will cover the rental income on a luxury property. The insurers don’t make it clear, they hide this in the small print. Many property owners are staggered when they find out that the rent isn’t covered for the full amount.
Others are amazed that insurers don’t cover absconding tenants and the associated rent.
Michael wasn’t one of these because we gave him clear advice and he travelled the world knowing that he would still receive rent even if the property was uninhabitable.
We’re here for all your journeys – take us with you.
Top Tip
Construction is high risk whether builders like it or not – don’t let them near your property without getting advice from your insurance broker.
Wrap Up
Like most busy people Michael wanted a single point of contact for all his insurance queries. We’re delighted to offer this service.
