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Highhouse Insurance

Insurance for Commercial Listed Buildings

Insurance for Commercial Listed Buildings from Highhouse

We have a number of facilities that will enable us to quote for listed buildings that are used for commercial (business) purposes. When you first contact our office we will undertake an initial assessment of your details to ascertain on what basis your property should be insured. In many cases, particularly where the building is designed and used as a private dwelling as well as a business, we may be able to issue a standard home owner policy. For example if you live in say the upper portion of the property but use the basement as a studio or consulting rooms, we can often insure you on a domestic policy with the cover suitably endorsed to note the business use. You will of course be responsible for arranging suitable business insurance including liability.

In all other circumstances, we will need to insure your listed building on either a commercial property owner’s basis (in instances where you are the landlord and you rent the property to tenants) or on a business combined basis if you also want to say cover your stock and liabilities.

A listed building is one that is of special interest and the listed status protects it from certain alterations which helps to preserve the building in it’s original state. Owners of listed buildings who are intending to use the property for commercial purposes will discover that there will be restrictions on the usage of the property as well as on any alterations to make it suitable for commercial use.

When obtaining an insurance quotation the Insurance Company will need to know the full details of the listing and also the materials employed in the construction of the building. At Highhouse Insurance we can quote for all grades of listed building.

Insurance companies are very cautious when quoting on a commercial listed building as they are aware that in the event of a claim, costs can be very high. This is because the length of time for any repairs to be completed is usually much longer than with standard construction commercial premises due to the fact that the correct permission must be obtained and consultants often need to be brought in to supervise work and ensure it is of the correct standard. Delays can arise when building materials are sought, for example, a specific type of stone. As it is usually necessary for professionals with listed building experience to carry out the repairs, the cost of the work will reflect their expertise. This increased cost of repair is shown in the higher insurance premiums on listed building insurance. When quoting the Insurance company will also require full details of either your trade or the trade of the tenant and will need to know about any materials stored in the property.

Private residential listed buildings can sometimes be converted into commercial businesses if they have obtained the necessary planning approval. Planning approval is, however, very restrictive and it may be impossible to for example remove existing windows and replace them with a glass frontage. Likewise, it may not be possible to add a nameplate to the outside of the building or to alter the inside in a way to make it more visitors friendly. Insurers will need to be told exactly how the commercial listed building operates and if there are any split usages within the building.

Although insurance premiums are higher in commercial listed buildings, it is not normally that difficult to obtain a quotation and subject to full information we will be pleased to assist you with either a quote for just your building or to include your business risks as well.

Subject to full underwriting details, we can normally supply standard insurance perils that would be suitable to secure a mortgage on a property and to satisfy a lenders conditions. Examples of listed commercial building we insure include; public houses, tea rooms, bed and breakfasts, hotels and guesthouses. We also have a number of customers who run business from their home and we are happy to quote on these as well.

We also have facilities to quote for religious buildings such as chapels, churches and mosques including grade 1 listed buildings used as places of worship.

We have many years’ experience in placing insurance on these special building and we welcome your enquiry

June 10, 2015

Flat Guides

What is a Lease

What is a Lease?

We are able to offer insurance for buildings that have been divided in to self-contained flats. These flats can either be purpose built with concrete floors or houses which have been converted in to flats.

What is a lease

Whatever type of flat you own, in all but rare occasions, you will own it on a lease. A lease gives you the right to occupy your portion of the building and use the common parts for a certain period of time. A typical lease would be for either 125 years or 99 years. At the end of the lease period the “ownership” of the flats reverts back to the freeholder.
Leases have been developed to give property owners a legal entitlement to land and buildings where it is not possible for them to own the freehold. Leases vary greatly and contain both basic elements and also special terms relating to the specific building. They are made in duplicate and the counterpart is held by the landlord. All the counterparts together form the management company or freeholders association title to the property. Most leases within the building will be the same. Its sometimes difficult to grasp that even though you have purchased a flat, if it is on a lease, you will in fact be a tenant, albeit it one with the right to occupy your property for a considerable amount of time. A lease is a contract between a landlord and a tenant. Each party’s rights and duties are formally written out. The duties are called covenants. Each flat owner ought to have had the lease explained to him/her when buying the property and should be aware of its terms. The owner or landlord will be paid ground rent and a service charge by each individual flat within the block and there will also be rules relating to behavior within each flat and repairs of the property.

The tenant’s covenants

Rules within the lease cover a variety of things. Most of them will be easy to understand and will not need any intervention from the management company or tenants association or group of tenants if things are run on a more ad-hoc basis. The covenants that interest leaseholders usually relate to the collection of money for the ground rent and the service charge.

Ground rent is normally a small sum (a peppercorn amount) and it may give the landlord a small income. If the tenants all group together and buy the freehold then this yearly amount is paid to themselves and it can be used to subsidise the cost of maintenance and insurance.

The service charge is a necessity whoever owns the freehold as it is used towards building insurance premiums and general maintenance. It is usually a good idea to keep money in a fund as the collection of charges can sometimes be a long drawn out affair especially if any of the leaseholders do not live on the premises

Types of Leasehold Clauses

‘Quiet possession’ is a clause that is to be found in every lease. It means that as long as the flat owner carries out his/her duties and obligations, then the lessor has no right at all to interfere.

The freeholder or his delegated managing agent must ensure that the building is covered by insurance (building, not contents) with a block policy. The insurance cover will need to be studied to make sure it is suitable for the leaseholders to be able to secure a mortgage. Often a leaseholder’s mortgage provider will want their interest noted on the policy schedule and in the event of a serious event such as a large fire, they will expect to be notified.

The cost of this insurance is recoverable from the flat owners by working out what proportion each is to be liable for. Building Insurance is paid in this way as it would not be possible to make sure that the entire building was correctly covered by insurance if each individual were to only be responsible for their own part of the building. Many leaseholders still try to obtain building insurance for a single flat but this is not to be recommended.

The Freeholder has a duty to maintain the building. This is an ongoing obligation. The cost of the maintenance and repairs are recovered under the service charge. The flat owners will expect the service charge to be used in an efficient way and, for this reason; another duty of the freeholder company is to produce comprehensive annual accounts for the flat owners. In practice, these are sometimes difficult to obtain.

If you have any question with regard to your ability to purchase insurance for a building that has been divided in to a flat, please do not hesitate to contact us, we will be pleased to assist.

May 18, 2015

Flat Guides

Valuing Freehold Interest

Freehold Interest on Valuations

At Highhouse Insurance we are often asked to quote for Buildings Insurance in respect of property that has been divided in to self-contained flats, either purpose built or converted property. One of biggest areas of confusion relating to this type of cover surrounds who is who is actually responsible for the insurance; is it the freeholder or is it the leaseholder. Generally speaking in most cases, the freeholder is responsible for the buildings insurance and will charge the leaseholders accordingly. In some cases it may be possible for us to provide cover for leaseholders and we are always willing to listen to situations where for whatever reason, the freeholder has not arranged insurance cover.

Many leaseholders chose to buy the freehold of their property to give them control over the building they own, this will then give them the right to make decisions and to manage the property as they feel fit.

If you are contemplating purchasing the freehold of the block of flats that you live in, it will be necessary to get a valuation from a local qualified surveyor before you enter into any negotiations. A surveyor will be able to complete a valuation according to the current legislation; will advise on purchase price and the offer that ought to be made to the freeholder in the Initial Notice and the freeholders response in the Counter Notice. He/She will also carry out negotiations on your behalf with the freeholder, give advice and provide evidence at a leasehold valuation tribunal as well as giving advice regarding repairs and maintenance of the property once the enfranchisement has been completed.

At the first meeting with the surveyor the valuation process should be discussed. According to Schedule 6 Part II of the Leasehold Reform, Housing and Urban Development Act 1993 the price of the freehold should include the income received from the ground rents within the building, the increase in the sale value of the flats due to the freehold being obtained (this is called the reversion value), the marriage value (this is the increase in flat values minus ground rents and the reversion value), the value of other interests e.g. garages and commercial properties, and compensation for losses to the freeholder for the reduction in value of another property resulting from a forced sale (injurious affection).

Freehold property with a long lease is valued on an investment basis, meaning that the property has no other value except for the income from the rent and the reversionary value once the leases have run out. The freehold value is worked out according to the expected future income of the property.

The income received is easily worked out. The annual ground rent is multiplied by the number of flats in the block. This amount is then multiplied by the ‘years purchase’. The ‘years purchase’ may either be taken from a set of tables or the valuer may calculate this for himself/herself. It is done to ascertain what the investor would have to pay to get the same fixed income over the term of the lease. There are often discrepancies to be looked at as the leaseholder’s valuer and the landlord’s valuer will often come up with different amounts for the years purchase figure.

As the lease on a leasehold property gets shorter the value of that property decreases. If enfranchisement is achieved then the new owner will usually increase the time on the leases. The values of the flats within the building are, consequently, increased. The valuer will need to consider other properties in the vicinity to estimate how much the value will increase. Flat leases usually revert back to the landlord once the term of the lease has expired. However, it is most likely that the tenant will be able to remain in occupation as there is statutory protection to ensure the tenant still has somewhere to live.

The marriage value involves both parties and is worked out quite easily. The value of the property with renewed leases is the base figure and from this the current value of the properties are deducted. Then the ground rent and the reversionary value are also deducted leaving the ‘marriage value’. This amount is split equally between the two parties. Legislation states that if a participating leaseholder has an unexpired lease of in excess of 80 years then any marriage value will be irrelevant.

In cases where negotiations do not run smoothly it may be necessary to enter more formal arrangements to bring matters to a satisfactory conclusion. The Leaseholders Valuation Tribunal is of help when trying to decide on matters like the sort of interest to be applied and the price to be paid.

There is a myriad amount of information relating to the value of freeholds available on the internet we believe if you are contemplating the purchase of your freehold, you should always seek professional advise.

Highhouse Insurance will be pleased to quote for buildings insurance for all types of blocks of flats whether owner occupied or rented to tenants.

We look forward to receiving your enquiry.

May 14, 2015

Business Insurance

Shop Insurance

At Highhouse Insurance we have access to many insurance markets offering shop insurance quotes and are able to offer cover for almost any type of establishment regardless of the type of goods it sells.

The policies that we arrange come on a package basis and we can quote for any of the following;

Landlords owning shop premises that are rented to tenants and are just looking to insure the Buildings, Property Owners Liability and Loss of Rent
Owners of shop premises that occupy them and run a business from the property
Business owners who rent premises and are looking for a “Shop package” quote

Shop Policies for Landlords

If you are a landlord owning a commercial property that you rent to a business that uses the premises as a shop, we can insurance cover for you on a “Buildings only” basis covering a wide range of perils suitable to secure a mortgage on the property with the ability to extend to accidental damage if required. As well as cover for the fabric of the building we will include insurance for your liability as property owner and cover in respect of loss of rent receivable from your tenant in the event of say a serious fire or a flood. In order to obtain a quotation, we will need details of the building as well as information relating to what type of shop business is run from the building and whether any manufacturing is carried out from the premises.

Package Policies for Shop Proprietors

Our shop polices are arranged on a package basis, that is to say they come with a number of “core” covers to protect your business needs and a range of “optional” extras which you can pick and choose as required.

Shop Contents Insurance

Our main core cover relates to the insurance of the business contents and in any business this will usually include;

General shop contents which you own or are responsible for which could include such items as ; fixtures & fittings, shelves, counters, display cabinets, fridge freezers and signs
High Risk contents which could include; Computers, Tills, EPOS systems etc.
Your stock
Goods you have in trust (For example if you run a repair shop you may have customers goods on your premises)

Extensions to this section can typically include your “Shop front” (some Landlords may make you responsible for the shop front and in particular any plate glass fitted in to the building) and “Frozen “stock if you carry goods of this nature.

Insurers rate premiums depending on the type of trade carried out, so for example a shop that sells Flowers will attract a cheaper shop insurance premium than a business that retails Electrical goods

Adding on the Extras

All shop proprietors will undertake an assessment of their business risk and choose the level of insurance they think appropriate and of course to suit their budget, what we like to do at Highhouse Insurance is make you aware of the covers that are available so you can make an informed decision as to what you should in fact purchase.

Shopkeepers Liability Insurance

Many package insurance policies will include liability insurance as part of the core cover, if it is not included, we believe it should be as it is essential for any business and in the case where you have employees, it is of course a requirement of law. Public liability for a shopkeeper comes in three separate sections;

Public Liability Insurance
Products Liability Insurance
Employers Liability Insurance

Public Liability will protect you from claims from members of the public that come on to your premises and are injured, this is of course an infrequent occurrence but even in the most well run establishment in can happen and when it does , claims for compensation can be high. Even if a claim proves to be unfounded, a defence has to be undertaken and this in itself can be a costly and time consuming process. If you are retailing any type of goods, you can be liable for a claim from a member of the public for products liability. Although there is usually a right of recourse against the manufacture of a product, this is not always a guarantee that you will be protected and in the case of a person becoming ill say through food poisoning, it may be possible to prove that your business was negligent in the way it handled or stored goods and you could end up facing a claim for compensation.

If you have any employees, you are required to have employer’s liability insurance (and to keep proof that you have held cover for a period of ten years). The employers liability protection act places a very wide definition of the word “Employee” and you cannot assume that a person say just helping you out, even if unpaid, will not fall under the definition. You must insure for a minimum of £5,000,000 although many of our polices will automatically include a higher limit

Business Interruption/ Loss of Income

In our opinion the above is an extra cover that it would be very unwise not to effect. Most business proprietors can see the relevance of insuring stock and contents but sometimes, especially if you have not witnessed the devastated effects of say a fire or a flood, business interruption cover is overlooked.

Following a serious occurrence there is often a period of time for the reinstatement where the business cannot trade or trade properly resulting in a loss of income, even when trading is fully restored there may be a down turn in turnover as perhaps customers have gone elsewhere. A serious question any business owner should ask themselves is how long the business could or you personally sustain a period of a reduction in sales income. Business interruption can come in two separate types, depending on the type of business you run, one or the other may be more appropriate to you

Increase Cost of Working

Some business simply find it quite easy to up sticks and move to other premises nearby and trading can often be continued with the minimum of fuss but with additional expenditure, other business, this is simply not possible and insurance is available to cover loss of gross income. At Highhouse, we can help you decide what level of cover you require that is best suited to your needs, this may include insuring on an Income basis

Income is defined as, the money paid or payable to you for the goods you sell less your outlay to buy the stock or raw materials- Insurers will also factor in the value of the stock you held at the beginning of a financial year as against that held at the end). Even though you may not be trading some of your business costs may be fixed, these could include heating, lighting,rates and of course employment costs and all of these will need to be factored in to any calculation.

There are a number of “extensions” that can be added to a business interruption section as some claims can result of an occurrence beyond your control, these can include

Denial of Access.-Sometimes, access may not be possible to a business because of an occurrence happening at a neighbouring property. Failure of Public Utilities-If there is an accidental failure of public utilities serving your shop (as opposed to a deliberate action such as cutting off services following failure to pay a bill) you may find that trading is affected. Death or Disease or Closure- Sometimes a business is forced to close for a period of time following a death on the premises or a customer becoming ill

Failure of Suppliers- Sometimes an event occurring at another business supplying your goods may result in loss of business to you, this is particularly important to a business that is operating say as a franchise and stocking goods from one supplier

In practice many of our modern policies now include a fixed sum insured for small business owners which is often far in excess of the actual needs required, this can help guard against under insurance in respect of this very valuable cover.

The above represent what we at Highhouse feel to be the minimum covers you should insure for, but we can also introduce you to other sections of a policy which you may want to consider depending on your business needs, these can include

Loss of Money
Staff Honesty
Loss of Licence
Business Legal Expenses

Many shop keepers do not stop to think of what would happen to their livelihood, if there was a serious occurrence such as a fire or flood at the premises. Many do not realise that you can insure against such contingencies and this section of the policy could, if you pardon the expression, keep your business afloat in the event of an enforced period of being unable to trade. Following a loss, some costs remain fixed and will continue, even if you are unable to trade, many businesses are unable to sustain a period of no income and thus it is essential that adequate protection is secured, via this section of the policy. The actual sum insured your will receive can be calculated as two separate amounts and depending on the type of shop you run, either or both may apply. They are as follows: 1- Gross Income 2- Increased Cost of Working, the additional expenditure necessarily and reasonably incurred, to carry on running your business, following a claim and during the time your insurance company are carrying out reinstatement. Some modern policy wordings, will not ask you for your gross profit figures, they will simply pick a sum insured for you, This can be ideal for a small business as the sum insured is usually, far higher than is needed. However, you need to pay close attention to the sum insured as you will not be properly protected if the sum insured is not adequate.

Whatever type of shop you run, we look forward to receiving your enquiry.

May 11, 2015

Listed Building

Non Standard Home Insurance

Insurance for non standard buildings

Non Standard Home Insurance

If your home building is of a non-standard construction it will require non standard home insurance and may be subject to an increased premium when paying for building insurance. When calculating premiums the insurers use a standard definition assuming that the building is of standard construction and is not unusual in any way. There is usually a question on a proposal form or it may even be contained within a statement of fact document.

Non-standard types of building are deemed to be those that do not fall into this category and a premium is usually added when quoting on anything that falls outside this norm. Some insurers will not quote for certain types of non-standard building at all. Standard construction includes buildings that are made of brick, concrete or stone with roofing constructed in slate, tile or concrete and all sitting on concrete foundations. Some insurers will allow felt and metal as standard roofing materials depending on the proportion of the roof that is flat.

Insurers refer to a roof that is pitched as standard. If any of the roof is flat in its design, as is usually the case with any extensions to the original building, an insurance quotation will typically be covered by standard rates as long as the flat part of the roof does not exceed more than 20% of the total roof area. This is because flat roofs have tended to leak and their life expectancy is approximately 10 years.

Brick, mortar and stone are the usual materials to be used in the construction of a building. However, there are other non-standard materials also to be found which are listed below.

TIMBER FRAME:

Many houses are nowadays made using timber frame, as were old style buildings which are now listed properties. Insurers sometimes class these as standard construction as they are of a sturdy design. Holiday chalets which are made wholly of wood are always seen as non-standard.

COB:

Cob is made of mud mixed with straw or with animal dung, rendered with cement. This may mean that it is unable to dry out and, therefore, it will be likely to decline and collapse over time. Modern cob is now pre dried meaning that this does not occur.

WEATHER BOARDING:

This is added for decorative purposes and is not part of the actual construction of the building. It may aid protection of the building against the weather conditions.

MUNDIC BLOCK:

Many homes in both Devon and Cornwall were made using waste mining materials because it was available cheaply in the area. These houses have been susceptible to decline over the years due to the fact that impurities found in the waste materials have caused chemical reactions. Consequently, it is highly unlikely that any insurer will give a quotation on such a property. Likewise, it is doubtful whether any mortgage provider would secure a mortgage on a property that is constructed using mundic block.

THATCH:

These properties are classed as non-standard due to the fire risk. Although statistically a thatched property is no more likely to catch fire than an unthatched one, due to the materials used in the thatching if a fire starts the damage could be more wide spread.

WATTLE AND DAUB:

This consists of a woven lattice of poles or stakes that are covered by a mixture of clay and sand or straw and dung. The wattle and daub is then whitewashed to help with waterproofing.

As well as these building techniques a property may contain asbestos, plastic sheeting, corrugated iron, metal, prefabricated materials or strammit. If you think that any of these materials or construction methods have been employed then your insurer should be informed when obtaining an insurance quotation. If you are not sure what your property is made from then it is advisable to look at your survey report or to consult a surveyor. Any false declaration to an insurance company with regard to your property will mean that your insurance could be invalid and any claim will be declined.

At Highhouse Insurance, we have facilities to quote for a wide range of non-standard buildings. We speak to many people who have found it difficult to find suitable insurance for their property and we are pleased that in the majority of cases, we are able to offer assistance.

May 6, 2015

Listed Insurance Guides

Listed Building Consent

Listed building planning and maintenance requirements

Planning and Maintenance for Listed Buildings

At Highhouse Insurance we deal with and specialise in covering all types of Listed Building Insurance including Listed Tenement Blocks in Scotland. Our insurance covers a wide range of perils suitable to obtain a mortgage and unlike some insurers; we are also able to cover buildings of non-standard construction.

We have a good understanding of the problems faced by the Listed Building owner and are always willing to speak to owners or persons that are contemplating buying this special type of property. This article looks at the effects of listing a building as well as planning and maintenance.

The effects of Listing a Building

Owning a listed building comes with many responsibilities and owners can find themselves as unpaid guardians of our nation’s heritage. Certainly buying a listed building is not something you would undertake likely particularly if you have designs on making changes either internally or to the fabric of the structure.

As soon as you take on ownership of a listed property you realise that things may not be as straight forward as owning a non-listed property, particularly if you want to make alterations or upgrades to the property.

Whatever grade of listing a building has, any demolition or alteration, both within the building and externally, will need consent if it is to affect the architectural or historic character of the property. The definition of what exactly is meant by the term ‘building’ is not always clear cut. A building does not always stop existing because it has been taken down and an order to reconstruct it may be issued.

The list of structures that have been called buildings includes telephone boxes, drinking troughs and sculptures. The situation is further complicated by the Planning (Listed Buildings and Conservation Areas) Act 1990 which enables the development of adjoining sites affecting the setting of a listed building to be looked at as part of the Act.

In the definition of a listed building the Planning (Listed Buildings and Conservation Areas) Act 1990 includes any structure or object within the curtilage of the building even if it is not fixed to the building as long as it was there pre 1st July 1948. The Act refers to the preservation of any feature of the building consisting of a man- made object or a structure fixed to the building. The term ‘fixed’ is understood to mean physically attached to and it, therefore, includes fireplaces, shutters and balconies for example. The legal guidelines are not completely clear and state for example that statues that are a part of the architectural concept are fixtures although statues placed there to be seen in their own right are not. The same reasoning may be applied to tapestries and chandeliers.

The position regarding the painting of listed buildings is inconsistent. Consideration is given as to whether painting affects the character of the building. Painting a surface that was previously unpainted would need consent but repainting using identical colour paint would not. However, if there is any change at all in the texture of the paint consent will be required. Due to uncertainties such as these, some areas have sought to introduce some controls of their own, the City of York for example introduced a by law to control the painting of buildings within the city walls and the importance of the colour of a façade is not only limited to paint colour but also to any changes in the colour of the glass in the windows.

The penalties for unauthorised work on a listed building upon summary conviction are a fine of up to £20,000 and/or imprisonment not exceeding three months. On indictment imprisonment may be up to twelve months and the fine is unlimited. The fine is required to reflect the financial gain arising from the offence. As well as a fine and/or imprisonment there will also be an order to reinstate the works, the cost of which may exceed the fine. Failure to take action to rectify a breach may be penalised on a daily basis.

Listing usually involves an increase in the annual maintenance cost and, consequently, a high service charge to occupiers of dwellings within listed buildings. Insurance costs are likely to be higher reflecting the increased cost of reinstatement, and there may also be additional security requirements if the building contains valuable fixtures and fittings. Administration costs increase with possible disaster plans to minimise loss in the event of fire or explosion and there will be increased costs associated with obtaining consent with the local authority. The work is likely to be more expensive because one-off items need to be made to match the existing ones. The time it takes to get the necessary approval can mean that the work is delayed and the use of the property may be affected in the meantime.

Although the listing of a building may have some burdens there are also some advantages with regard to approved alterations. These may have some tax relief and your accountant or local authority should be able to assist you with an enquiry.

Listed building consent

In Section 7 of the Planning (Listed Buildings and Conservation Areas) Act 1990 it is stated that nobody may “execute or cause to be executed any works for the demolition of a listed building or for its alteration or extension in any manner which would affect its character as a building of special architectural or historic interest, unless the works are authorised.” Consequently, Listed Building Consent (LBC) is needed when alterations and repairs to listed buildings are to be made. Planning permission will also be necessary for any extension and for some external alterations. Approval under Building Regulations is usually required too, for both internal and external works. Listed building consent may also be needed for any work on buildings or structures within the grounds of a listed building.

It is essential to carry out routine maintenance of a listed building in order to avoid major works or repairs. Wherever possible like should be replaced by like as traditional materials give listed buildings their unique character. Existing materials on the building should be repaired rather than being replaced, and where work is unavoidable it should avoid damaging old work. Features that are missing should only be replaced when there is evidence that they were there originally.

Listed building consent is required for any demolition, extension, alteration or stone clearing which affects the character of the listed building in any way at all. This may mean that often very minor works, such as door replacement, will need consent. If there is any doubt as to whether consent is required then the Conservation Planner at the Local Authority should be consulted. Examples of works which will need LBC are conservatories, porches, extensions, demolition work, repairs made in materials differing from the original materials, the sandblasting of both internal and external stonework, the removal or alteration of internal doors or panels or fireplaces, exposing timbers that were previously hidden, painting brickwork, installation of satellite dishes, the fitting of new boilers or ovens that need a flue, replacing windows and making internal partitions where none existed previously. This is not a complete list and the Local Authority Conservation Officer should always be asked if LBC is a necessity before work is carried out.

Anyone who carries out work to a listed building without getting the required permission first where the character of the building is affected will, if convicted, be guilty of a criminal offence and this can result in a large fine or in imprisonment. Enforcement action may be taken to restore the building to its original state. There is no time restriction under which these proceedings may be taken. Often the failure to get consent is discovered upon the sale of a listed building. Before buying a listed building it is, therefore, important to check with a solicitor that all works that have been carried out have had the necessary consent, as, if you purchase a listed building with any unauthorised works you then become liable for them. To obtain your quotation for insurance for a listed building including homes with thatched roofs, call Highhouse insurance today.

On occasion it may be necessary to undertake emergency works on a listed building. In such cases the work should only be done if afterwards you are able to prove the following:

That the emergency works were needed with urgency due to health, safety or the preservation of the building in question.
That it was impossible in any way to provide temporary support whilst Listed building consent was sought.
That the works carried out were the least that could be done as a matter of emergency.
That notice in writing which explains in detail exactly how and why the works were done is given to the Local authority as soon as reasonably possible.

The owners and occupants of listed buildings are responsible for maintaining them in a good state of repair. Any listed buildings that have been allowed to fall into disrepair may be added to the Buildings At Risk Register and this will mean that the state of the building will be closely monitored and, if it does not improve, the Local Authority can ask that an Enforcement Notice be served for all the repairs to be carried out.

Before buying a listed building it is essential to comprehend that permission for any alterations may not be granted. However, it is also worth knowing that any new works to listed buildings that have received consent may be eligible for zero rated VAT, meaning that the VAT can be reclaimed. Work done to maintain or repair the listed building are not eligible to be zero rated.

At Highhouse Insurance, we have excellent relationships with our underwriters and a real understanding of this building type, which enables us to offer excellent premiums for both Buildings & Contents for Listed Buildings.

May 5, 2015

Home Guides

Home Insurance FAQ’s

Every now and then we get asked questions that we feel should be answered but aren’t covered in our home guides. Since closing our forums we have moved the best questions into this section.

Q) Can I use my Homeowners Insurance on a theft from my car while it was parked at home?

A) There is cover for personal effects under the motor insurers for a small amount, however, depending on what has been stolen from the vehicle, will be dependent on the cover provided by the home insurer. For example the theft of a laptop from an unattended vehicle is not normally covered.

Q) Do you have to have a survey of your home to get homeowners insurance?

A) No having a survey is not a requirement, however, the survey may be helpful to establish the rebuilding costs of the property for insurance purposes.

Q) How often should I inspect the home for insurance purposes?

A) All homes should be checked at least once every 14 days if the property is unoccupied and a detailed itenery of visits maintained. There may be other cover restrictions that could apply and as such you should always refer to your policy.

Q) Are Home Foundation Repairs Covered by Home Insurance?

A) The repairs to foundations are included as a result of the insurable perils under the policy, such as Landslip/heave and subsidence. But not as a result of faulty workmanship.

January 8, 2015

Let Guides

Fire safety and landlord safety in HMO properties

fire protection advice for HMO properties

Research has shown that the risk of death from fire in some types of HMO is greater than in single occupancy properties, highlighting the need for adequate fire precautions. ENTEC Limited gathered statistics which show that in houses that are converted into bedsits the risk of death from fire is 1 in 50,000 and in bedsit houses that have three or more storeys this risk jumps to 1 in 18,600. These risks are six times and sixteen times higher than the risk of death from fire in a single occupancy dwelling respectively.

Under the Housing Act 2004 there are no set standards for fire safety as each residence may be unique and pose different risks. Fire precautions are used to stop smoke and fire from spreading in order that the residents have a better chance of escape. These precautions include a protected route (the means of escape in the event of fire), fire separation, fire doors, automatic fire detection, emergency lighting, firefighting equipment and fire safety compliant furniture. Each of these precautions must be considered for HMO’s but note that the precautions used can be dependent on the risk of the property.

Fire Safety and Landlord Safety precautions

PROTECTED ROUTE: This covers the exit from the building in the event of a fire and should always be kept clear to allow easy access to safety. All final exit doors should be able to be opened without a key. The doors, walls, floors and ceilings of the escape route should be made to resist the passage of smoke and fire for half an hour, and any electric or gas meter boxes should be encased in material to resist fire for at least half an hour as well. Any cracks, holes or damage to the plaster in the walls or ceilings of the escape route need to be repaired using material to give the required standard. Certain items should not be allowed in the stairways, such as portable heaters, heaters with naked flames or with bars, fixed heaters with gas canisters, upholstered furniture, storage furniture, coat racks and cooking appliances.

FIRE SEPARATION: All lettings in HMO’s should be separated from one another as well as from the protected route using half hour fire resistance for the walls, floors and ceilings. In HMO’s that have commercial premises attached a one hour fire resistant separation is needed.

FIRE DOORS: Fire doors are needed in high risk HMO’s to prevent the spread of fire onto the protected route. Each letting room and any other rooms opening onto the protected route should be fitted with a fire door which needs to meet certain standards. Fire doors should be half hour fire resistant and must be able to be opened from the inside without the use of a key. They must also be self-closing and fitted with a minimum of three hinges that are made to withstand temperatures of more than 800 degrees centigrade. The gap between the door and the door frame may not be more than 3mm and 8mm underneath the door. Fire doors must never be wedged open.

AUTOMATIC FIRE DETECTION: In large HMO’s (three storeys or more) a full fire alarm system should be installed with a central control panel. Heat detectors should be provided in all kitchens and rooms with cooking facilities, whilst smoke detectors should be provided in all hallways, landings, living rooms and bedrooms. In smaller HMO’s

(two storeys) smoke detectors/alarms should be installed in the hallways, landing and bedrooms and a heat detector should be installed in the kitchen. All heat and smoke detectors should be wired to the mains with a battery back-up. Fire detection alarms must be maintained and checked regularly.

EMERGENCY LIGHTING: Emergency lighting with a battery back-up if the mains electric supply fails is required in HMO’s of three or more storeys. This provides adequate lighting for the occupants to be able to see the escape route from the building. It must be maintained and kept in good working order, and inspected regularly.

FIRE FIGHTING EQUIPMENT: Fire extinguishers are needed so that small fires may be put out and also so that the escape route may be kept passable in the event of a larger fire. Instructions to tenants must be given on the correct way to use the fire extinguishers. Fire extinguishers should be placed on brackets that are about 1 metre from the floor and must comply with BS EN3 and be kept in good working order and serviced once a year. A multi-purpose extinguisher should be placed on each floor in the communal hallway. In a kitchen a carbon dioxide or a dry powder extinguisher should be provided. A fire blanket conforming to standard BS 6575 should be provided in a shared kitchen.

FIRE SAFETY COMPLIANT FURNITURE/FURNISHINGS: Any furniture or furnishings provided must comply with the Furniture and Furnishings Amendment Regulations 1993. This includes upholstered furniture, mattresses, cushions, pillows, seat pads and any upholstered garden furniture.

If you a require a HMO insurance quotation, call Highhouse insurance today and we will be pleased to assist.

November 30, 2014

Caravan

Securities for Touring Caravans

the importance of securities for touring caravans

Highhouse Insurance Guide to Caravan Security

Every year many caravans are stolen in the United Kingdom, usually from outside of the owner’s property or from a commercial storage site. Caravans that are 2-3 years old are statistically the most likely to be stolen. Even in the event that the caravan is recovered by the police, are often never returned to the owner as all marks of identification are removed by the thieves. Taking the correct securities for touring caravans is important and precautions against theft can be taken with many different security devices available, varying widely in price.

Hitchlocks

These are a deterrent to thieves acting where they find the opportunity to do so, and they can provide protection against roadside theft, on site theft and also theft at service station areas. They do not, however, provide adequate protection against theft at home or in storage. When looking for a hitchlock ensure that the model chosen covers the whole hitchhead and the securing bolts to provide maximum security. Also look for the Sold Secure standards to ensure that you get the best quality.

Wheelclamps

Though not very suitable for use whilst making a short stop, a wide variety of wheelclamps are available. Ensure that you look for a wheelclamp that cannot easily be removed by a drill or hacksaw and bear in mind that thieves may let the caravan’s tyres down whilst attempting to remove this type of security device.

Wheel Locks

A wheel lock works in a similar way to a wheelclamp but it also fixes through the wheel and into the brake assembly. A wheel lock can be difficult to attach and unsuitable for a short stop, but when fitted wheel locks are highly effective. Different types of wheel lock are manufactured for different types of caravan.

Alarms

Many types are available and costs vary considerably. If you are looking for a Sold Secure alarm, i.e. a quality tested one, then it is advisable to check their website as very few manufacturers of alarms have a Sold Secure status.

Tracking Systems

These help in the location of stolen caravans by tracking their whereabouts using either satellite technology or radio signals. There is a large selection of tracking systems available on the market, though it is important to recognise that tracking systems designed for motor vehicles may not be suitable for use on caravans.

Tracking systems can be costly to fit and may require an annual payment if a monitored system is purchased. It is also worth taking into account that not all insurers will give a discount on insurance premium if a tracking system is installed.

CRiS

This is the Caravan Registration and Identification Scheme. All touring caravans manufactured by the NCC since 1992 have had a 17 digit vehicle identification number marked on their chassis, as well as having been recorded on the CRiS database. Since August 1997 they have all also been electronically tagged and from 1999 the scheme was improved to extend registration to caravans manufactured before 1992 as well as privately imported ones.

CRiS also offer Silent Tracer which is a security marking system that makes caravans much harder to steal. It also deters fraud through cloning by providing a unique identity for each caravan. Details of the current costs of CRiS sevices and memberships may be found on their website.

Whilst CRiS does not prevent theft, it does help in the recovery of stolen caravans and it may have an effect as a deterrent as caravans in this scheme are much harder for thieves to sell on to others.

Hitch Posts

These are a useful security measure whilst your caravan is at home. A post is concreted into the ground, on to which the caravan ballhead can be fixed into place using a hitchlock.

Security Tagging

Contents theft from caravans has increased in recent years and thieves regularly steal expensive electrical goods, such as laptops, tablets, digital cameras and mobile phones. Security tagging these items will not prevent theft from happening but it will aid the police in the identification of stolen goods if they are found.

Many methods of security tagging exist, varying in cost. A cheap method of tagging could be by using UV markers to mark your expensive belongings with your postcode. A more expensive alternative would be using microdots, which involves a registration fee and monthly payment to ensure that your belongings remain registered on a database.

Roof Marking and Photographs

Marking the roof of the caravan with at least the last six characters of its CRiS number with stick on letters is a good way to ensure that the caravan will be easily identified by roadside cameras in the event of a theft. It is also recommended that the caravan is photographed both inside and out so that you have photographs to provide to the police should you become a victim of caravan theft.

November 5, 2014

Caravan

Static Caravan Insurance

We now offer Static Caravan Insurance

At Highhouse Insurance we have a variety of options available for owners who require static caravan insurance. We can cover the structure of the home itself as well as any contents. We are equally pleased to receive enquires from owners who use the property as a main residence or occupy for holiday home use, including caravans that are let on a short term rental basis.

Call us for your quotation, we cover most static caravan parks in the United Kingdom and insurance can normally be arranged the same day with premiums being paid either by credit/debit card or by monthly direct debit.

Insurance for static caravans is based upon the fact that they will remain in one place. The insurance premium will be affected by the location of the site the static home or static caravan is on, as well as the construction of it. Most static caravans are built to BS3632 standards, although some have been manufactured to the BS EN 1647 standard instead.

Static homes are usually located on privately managed holiday parks. Each holiday park must hold a local authority licence. This licence will only be awarded if the park has planning permission and a copy of it must be displayed on the park notice board. The licence will indicate whether the park is for holiday or for residential use and will also state whether the planning permission is indefinite or if there is an expiry date. The licence shows the maximum number of static homes that are permitted on site as well as fire precautions and health and safety instructions. Parks that are not privately owned, but instead are owned by the local authority, will not have a licence but must still adhere to these standards.

Most residents on these sites will own their static caravans themselves and will pay the site owner a fee for the pitch. This fee covers the maintenance of common areas as well as any services provided on site.

Many sites will not allow the static home/caravan owners to reside on site all year round. If, however, the site does allow all year round occupancy and the static home/caravan is lived in permanently, then the owner of the home/caravan is protected under the 1983 Mobile Homes Act as amended by the Housing Act 2004. This Act does not cover homes used only for holidays or occupied for only part of the year.

As there are many different styles of caravan our insurers have an insurance policy specifically designed to take this into account, and they comprehensively cover a wide variety of perils. Cover can be provided on most makes of caravan including ABI, Arronsbrook, Atlas, BK, Bluebird, Brentmere, Carnaby, Classique, Cosalt, Delta, Galaxy, IRM, Kingston, Lisset, Normandy, Omar, Pemberton, Rapid Home, Stella, Swift, Tingdene, Tudor, Victory, Wessex, Westbrook and Willerby.

Don’t worry if your home is not on this list, in all probability we will still be able to issue cover. If you would like a quotation for static caravan insurance then please feel free to call us on 01243 606552.

November 3, 2014