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Renovation Underwriting, the UK leader in property renovation insurance cover, has designed a unique and bespoke policy for a £42 million rebuild cost property in London’s prestigious West End. The mixed-use development forms part of a private investment portfolio and encompasses offices for a FTSE 100 company as well as luxury penthouse residences in the heart of the capital.
The JCT policy developed by Renovation Underwriting was the result of months of intensive research, liaison and coordination between the building’s freeholder, leaseholder and renovation contactor. The formal contract (Joint Contracts Tribunal) set out the responsibilities of all parties within the construction process and their obligations, including insurance provision by the freeholder and leaseholder.
The policy designed and negotiated by RUL for this extensive property includes cover for contract works to the value of £20m, public liability to £10m and party wall liability to £10m. Also included is a provision for advance loss of rent at over £10m. In designing the bespoke policy, Renovation Underwriting offered total protection for all parties at every stage of this 12-month renovation project.
Speaking about the project, Renovation Underwriting Managing Director Douglas Brown commented: “Designing and creating this tailored contract was for us the culmination of months of complicated legal and administrative legwork by our team, presenting a policy that all parties were comfortable with. We were aware that both the surveyor and contactor teams have their own priorities during such a complicated renovation, so taking ownership of the JCT insurance clauses enabled us to ensure the clients could concentrate on the deal, in the knowledge that the right policy would be in place when they needed it.”
The policy covers the existing structure and works on site and includes vitiation protection to provide extra security for the freeholder and leaseholder against the contractor breaking the terms of the policy. The complex and large scale nature of the renovation necessitated that all parties were in full agreement before the project could commence.
Added Douglas Brown: “We take a no compromise approach to projects such as this. Our mantra at Renovation Underwriting is that the client has to win, and we designed this tailored policy to serve not only our broker partner, but everyone involved in this exciting development.”
The renovation project is due for completion by summer 2021.
Through its established wholesale broker network, Renovation Underwriting supports high net worth private and commercial clients who are renovating, extending or altering property. Take a look at our products.