Now online - new resources section with key updates & FAQs on Renovation Underwriting policies affected by Covid-19. Take a look
The cessation of works clause will be affecting all current RUL policyholders and so here we share answers to some of the frequently asked questions. The FAQs listed here have been designed to offer our Brokers further insight and peace of mind – but please do get in touch if you have a more specific query.
This FAQ advice now exists in video format too - take a look.
What happens to a client’s policy now Works have stopped?
Renovation policies include a cessation of Works clause which activate automatically.
- Allianz, HSB and RSA policies after 90 days with no work carried out on site.
This means your clients continue with the level of cover they currently have for the period of time stated above. We are in ongoing discussions with the Insurers in regards to this developing situation, and we’ll keep you up to date.
The existing policy conditions remain in place during cessation - meaning water must be turned off and drained and the electricity and gas switched off (unless to power a burglar alarm or keep the heating on).
Can my client suspend their policy?
No. RUL policies cannot be suspended whilst Works have stopped as cover is still required for the existing structure (and whatever work has been completed so far). RUL policies will provide cessation cover for the period shown above.
Do Works have to be inspected during the cessation period?
In line with the Terms and Conditions of the policy, inspection of the property is required every 7 days. Inspections should continue whilst possible and practical to do so within current Government guidelines. Once again, we are working closely with Insurers in this regard, and will let you know if things change.
What happens to polices that were just about to start?
All three Insurers allow for up to 60 days between the inception of a new policy and the date the work will commence. There are some variables here depending on the Insurer, which our Underwriters can advise you on.
Do I need to contact my policyholders about this?
At times like this, it is more important than ever to remain in contact with your clients so that they understand their obligations and you can provide them with advice to comply. It is also important that they talk to their contractors about the policy conditions as many are joint insured.
A client wants to obtain a new quote, can you provide it right now?
Now is a good time to prepare quotations for future renovation work, to identify likely costs and commitments for your clients. Quotations are valid for 90 days but can be requoted quickly after that period by our underwriters from their home offices. Our online portal continues to serve the market to support new policy enquiries too. Here’s how to access it.
I have other questions, can you help?
The Renovation Underwriting team is committed to providing the upmost support to you and your clients; just as we always have been. If you need help interpreting the Terms and Conditions of RUL policies, or wish to discuss any specific circumstances further, please get in touch.
Later this week, we’ll be back in touch with further detail on policy extensions. Please do get in touch if we can support you with your queries in the meantime.
Managing Director | Renovation Underwriting
Not read our Important Policy update email from Friday 27th March? Access it here.
* Please note that the guidance presented here was correct at the time of publication (as shown), but we would advise you to call us to confirm the very latest updates if this content is of relevance to you.