To ensure a claim is fully paid by the insurer, it is important that the property is valued at its full replacement cost.
We recommend having a professional insurance replacement cost valuation completed every 3 years to keep the value up to date.
Calculating Rental Income
When calculating the annual rental income for a property, one should factor in
1. Indemnity (recovery) Period, consider the following:
– Time to demolish and rebuild.
– Time for Council approvals.
– Time to re-tenant the building
– Minimum of 24 months recommended, your rental income will be covered for the period you select.
2. Outgoings, which includes parking and utilities.
3. Escalation costs over this period.
An Industrial Special Risk policy provides cover for Buildings and Contents damage and Business Interruption cover by any cause not specifically excluded by the policy. This all-encompassing policy is designed for mid to high-value properties, typically from $5,000,000 upwards.
The Business Package offers protection for small to medium size properties, or small business owners against insured perils stated in the policy wording (fire, theft, vandalism, property damage, water damage, etc ). Typically not as comprehensive as the ISR policy, but can be more price competitive if the property is valued under $8,000,000.
Knowing your Duty to Disclose
It is the legal responsibility of the person applying for insurance to disclose relevant information to the insurer before an insurance quote is accepted and the contract is entered into.
The insurer is within their rights to remove themselves from a policy if they become aware of a risk they did not previously know of.
Please contact us for general advice on your duty of disclosure if clarification is needed.