FAQs

Index-linking is a percentage that is applied to the Declared Value of the property at each renewal to ensure that the value remains relevant through changes in inflation and rebuild costs. Day One Uplift covers inflation that may occur during the time it take to rebuild your property should the worst happen.

Yes, Insurers use different rates depending on whether the property is concrete or timber floored. Timber floored properties tend to carry a higher rate than concrete, due to the increased risk exposure, for example, water travels faster between floors when they are timber than when they are concrete.

The ‘Declared Value’ is the total cost to rebuild the property (including all fixtures and fittings, car parks and pavements for which you are responsible) at the inception or renewal date of your policy. It should also include an allowance for professional fees and debris removal costs. The ‘Sum Insured’ is this declared value plus an inflation provision (which is 30% under this policy, however this differs depending on the insurer). This is to take into account inflation costs during the time it takes to rebuild your property. For example, if your building costs £100,000 to rebuild on the first day of the policy period (which is the declared value) and suffers a loss, Insurers will cover inflation that occurs in the period it takes to reinstate the building up to 30% of the declared value. It should be pointed out that for this to apply the Declared Value will need to be accurate on the first day of the insurance period.

Alternative Accommodation will cover reasonable and necessary costs to place the leaseholder in accommodation whilst works are being carried out in the property following a loss from an insured peril. Loss of Rent will pay the landlord any rental income they are no longer able to receive following a loss from an insured peril. It will depend how the lease is written as to which of the above can be claimed for. If the lease states that the tenant can break their contract in the event of the property being uninhabitable, the insurer will pay Loss of Rent, if it states that they must continue to pay their rent, insurers will pay for their accommodation.

Trace and access is to source a leak which may be hidden behind walls, ceilings and under floors. Insurers will indemnify you for “reasonable” costs and expenses incurred to locate the leak.