People are often left confused after trying to arrange shop insurance. Luckily you can benefit from our top five tips.
Tenants’ Improvements relates to improvements to a rented Building – This is an area that is often misunderstood or ignored. Tenants’ Improvements refers to improvements you have made to a rented property such as shop front, laminate flooring, redecoration, improved electrics etc.
Example – If the premises is destroyed, the Landlord would only be responsible for putting the premises back to its original condition, so if you haven’t insured for Tenants’ Improvements there will be no cover for the improvements that you have made to the premises.
Contents refers to items you would take with you, Buildings the items you leave behind – The general rule for deciding if something is Contents or Buildings is if you were to move, would you take it with you? The exception to this rule is carpets, which unless glued down are considered Contents.
Example – A fitted kitchen is an example where you may be unsure, however if you use the rule above it would be considered Buildings, or if you rent the property and have fitted the kitchen it would be classed as Tenants’ Improvements.
Sums Insured should include replacement costs, labour costs & debris removal costs – When setting a Sum Insured you need to consider the replacement cost of the item, the labour cost of re-fitting and the cost of debris removal.
Example – If you redecorate materials may only cost £200, but when you add the costs of a skip to clear the debris and the Labour for redecorating, it may total £800. In this instance you should insure for £800.
Endorsements, Conditions and Exclusions include important policy details – Usually found in the Policy Schedule, these can detail requirements by the Insurer, specific cover not included and details of cover.
Example – The Minimum Security Condition is commonly found on Shop policies and it details the security requirements requested by insurers e.g. the type of locks on doors and windows. If you do not meet these requirements, you may not be covered in the event of claim.
Our Expert Eye Suggestions will highlight if we think you may have missed something – Once you have bought your selected policy, we will provide our Expert Eye service. Our Expert Eye service will review the cover supplied by the policy and the information you have entered, we will then send you an email with any suggestions we may have.
Example – If we feel there is an area of cover you may have missed or an aspect of cover that you need to be aware of we will highlight this in our email to you.
I hope this has given you an insight into the things to think about when arranging your shop insurance and I look forward to doing business with you soon.
You can download these Top Five Tips as a PDF here
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