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This week sees Renovation Underwriting continue to help Brokers support clients clearly and fairly in during these challenging times. MD Douglas Brown shares new FAQs on Policy Extensions in the latest instalment of the broker communications series.
This FAQ advice also exists in video format too - take a look.
What happens if a client needs to extend their policy because their site has been affected by Covid-19?
Without current events, it is already the case that nearly 9 out of every 10 policies needs an extension. We are therefore well geared up to deal with extension requests, just talk to our underwriters.
Will my client have to pay any additional fees or charges to arrange the extension?
Yes, there will be an additional premium to pay but, we won’t be levying any fees or additional charges for client sites hit by Covid-19.
Why will there be an additional premium?
Although the reason that works are suspended is out of your clients’ control, cover is still being provided on an ‘All Risks’ basis for an existing structure, partly complete works and for the liability arising therefrom. The risks on an unoccupied site are often greater than a working one.
Will there be an increase in rate because of the longer extension period?
No, we won’t penalise those who need an extension for the period Covid-19 delays their works.
Will an extension be available even if works have stopped and can’t be restarted within the policy cessation period?
For policies that come to an end during a cessation period, we will grant an extension subject to normal underwriting. Properties which remain in dormant after the policy limits for cessation have expired will require additional underwriting. If the normal terms for properties undergoing works, but which are in cessation beyond normal limits cannot be accommodated, we will place those properties on Renovation Unoccupied <link> until such time as works can recommence. This course of action won’t be undertaken without extensive communication and negotiation with you and your client - being used as a last resort rather than a preferred option.
What is the Pre-Works Period allowed by my policy?
Works need to have started within 60 days of inception.
What if works were due to start but show no sign of doing so within the 60 days?
If your works have not started within 60 days of inception we need to make other arrangements for the property under our Renovation Unoccupied product. Our underwriters will arrange terms for you.
Will I need to advise RUL before works restart if clients have been switched to Renovation Unoccupied?
If vacant properties pending works have been switched to Renovation Unoccupied, you will need to advise our underwriters that works are due to commence and obtain a further works quotation.
Do I need to contact my policyholders about this?
The policy extensions guidance above may not relate to all clients right now. However, 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.
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.
* 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.