Due to title deed requirements, owners may have to insure under the common building insurance policy arranged by Ross & Liddell. The standard policy does not provide full cover for properties that are not owner occupied as a permanent residence.
We are however able to arrange a range of optional extensions for properties that are either tenanted or used as a holiday/2nd home. Owners should also be aware that unoccupied properties do attract increased excesses (which are detailed on your certificate of insurance) with Insurer definition of an unoccupied property as follows;-
- Any part of a building or flat which is empty, disused or unfurnished
- Not used as the Insured’s main residence or used by the property owner as a Holiday / 2nd Home and not currently occupied
- Any property no longer in active use by the Insured or any of the Insured’s tenants for more than 45 days in a row
For ease of reference the Unoccupancy condition is summarised as follows;
1) All gas and electrical services within the Unoccupied property are switched off at the mains except for any electrical circuits required to maintain any fire and intruder alarm, security protections and timed lights, heating systems and fridges or freezers.
2) The water system to the Unoccupied portion of the building must be isolated at the mains and completely drained or the heating systems has been set at a minimum temperature of 5 degrees Celsius during the period 1st October to 1st April each year.
3) All accumulations of mail or other combustible waste materials that form ready fuel for a fire should be removed from within the Unoccupied portion of the building.
4) The Unoccupied portion of the building must be secured against unlawful entry by closing and locking its doors and windows and setting all its security and alarm systems.
5) The Unoccupied portion of the building is subject to a programme of comprehensive internal and external inspections undertaken by an authorised representative of the insured to ensure continued compliance with the other terms of this condition.
The inspection frequency varies depending on the type of unoccupied property
Tenanted properties excluding Holiday lets / Unoccupied Properties / Holiday & 2nd Homes
Inspections should commence within the initial 14 days following the property becoming Unoccupied and continue at intervals not exceeding 14 days thereafter. Inspection results are to be recorded and retained at a separate location during the period of unoccupancy; and any new accumulations of junk mail found during such inspection should be removed.
Inspections should commence within 24 hours of the tenant vacating the property and then every 7 days with a further inspection no more than
24 hours before a new tenant takes possession of the holiday let property.
Inspection results are to be recorded and retained at a separate location during the period of unoccupancy; and any new accumulations of junk mail found during such inspection should be removed.
6) The Insurers are to be notified within 7 days in the event of damage or unauthorised entry to the Unoccupied area becoming evident or known to the Insured or their representative.
Depending on the individual owner requirements, cover can be extended for the following property occupancies;
- Tenancy agreements for premises in return for the payment of rent under a lease agreement
- Tenancy agreements under Home Multiple Occupancy lease agreements
- Holiday Lets
- Holiday / 2nd Homes
- Unoccupied properties (subject to compliance with unoccupancy condition)
Depending on the individual extensions, cover can include the following with quotations available upon request from R&L insurance team;-
- Loss of residential rent following a valid material damage claim replacing the standard cover of alternative accommodation up to a limit of 25% of the property building sum insured, the indemnity period under the loss of rent is also increased from the standard 24 months to 36 months.
- Landlord contents up to £25,000 (which should represent the full replacement costs of the contents)
- Accidental and Malicious Damage by tenants up to £25,000
- Adverse Possession up to £50,000 with loss of rent including the cost of re-letting
- Damage caused by the illegal cultivation of drugs cover up to a limit of £25,000
- Option to increase Property Owners Liability from the standard limit of £10 million to £20 million
- Option for Flexible Use for example student let during term times and transferring to holiday let during Public Holidays within Scotland.
- Removal of increased excesses for properties falling within Insurer definition of an Unoccupied property
- Matching ‘parts’ which in the event of a valid claim would extend the cover to replace undamaged parts of buildings that form part of a suite common design or function where the damage is restricted to a clearly identifiable area or to a specific part. Cover can be extended to include common areas if all owners within the property take advantage of this additional extension.
Our building insurance policy contains a general interest /Indemnity to Principal clause which notes the interest of superior landlords, landlords lessees under lessees assignees licensees financiers lenders receivers and or mortgagees of Property insured. As a result individual endorsements to the policy are not required with the relevant party interest only needing to be notified to the insurer at the time of a claim.
Payment of insurance premiums by monthly instalments usually attracts an additional cost, however we are pleased to advise we can offer this facility at no cost to you. Please contact our finance team on 0141 221 9266 who will be able to provide details to you.
Policy wordings and cover summaries can be found here, however if you would prefer a copy to be emailed or mailed directly to you, our insurance team will be happy to accommodate.