Water Damage Costs Commercial Property Owners Millions

Recent research, conducted by Cadogan Keelan Westall, the UK's leading property insurance specialists, has revealed nearly 50% of claims made on commercial buildings and contents is for damage caused by escape of water, which is estimated to cost commercial property owners £185m per annum.* (*Source: ABI - Commercial non-weather-related escape of water claims for the whole of 2010 - £0.5m per day).

The research also found that the average water damage claim in 2011 was £2,907.54. The most common causes of water damage are from burst pipes, roof leaks, frozen pipes and blocked drains. In unoccupied premises, water damage claims are higher than occupied premises, as often there is no one on site to check for burst pipes etc.

Brett Sainty, Head of Business at Cadogan Keelan Westall comments: "Water damage is both costly and disruptive to business and it continues to account for the largest number of claims. Our data also shows that it disrupts business for weeks, contributing to a loss of revenue and profit. We have had a recent claim for a large water leak in the basement of an office building in the City, London and it has affected four floors and the claim is running into thousands. Needless to say, it has been a great inconvenience to tenants.

"However, the good news is that we are seeing a slight drop in claims and this may be due to better awareness of preventative measures to limit water damage. We have been working closely with Waterguard Services, who offers an innovative solution for Residential and Commercial properties designed to prevent water damage, by automatically shutting off the water supply in the event of a burst or major leak. Waterguard delivers practical solutions for water leak detection and water management ensuring customers can protect property, conserve water and save money.

"I would urge all commercial property owners to consider preventative measures for water damage so they are adequately protected. It will save time, money and disruption in the long term."

Cadogan Keelen Westall works with some of the largest blue chip property owners, investors and managers in the UK. The company's specialist property experience gives them extensive knowledge of property industry and a real understanding of the needs of commercial property professionals.

 Lloyds of London announce large losses - September 2011
 

Lloyd's of London slumped to a pretax loss of £697m in the first half of 2011, against a profit of £628m a year ago, reflecting £6.7bn of claims. This made the first half of 2011 the costliest six-month period in the insurance market's 323-year history.

After large scale disasters in Australia, New Zealand, Japan and the US so far this year, the frequency and severity of natural disasters is making life hard for insurers.

These large claims are likely to have an effect on rates when insurers renew their re-insurance treaties at the beginning of January 2012.

This may affect the property market in the near future as Lloyd’s underwriters may now be looking to increase rates in some areas and might not compete on business they regard as under-priced. As your broker, Cadogan Keelan Westall will endeavour to ensure any cost increases are mitigated for clients with well run portfolios.

 BIBA calls for the notification period to be increased on the Riots (Damages) Act permanently - September 2011
 

The British Insurance Brokers' Association (BIBA) has called upon the Government to permanently change the Riot Damages Act notification period from 14 to 42 days.

This call was made following the Home Affairs Select Committee's Inquiry – 'policing large-scale disorder: lessons from the disturbances of August 2011.'

BIBA's Head of Corporate Affairs, Graeme Trudgill commented: "14 days is not a remotely realistic period for businesses to quantify losses and make a full submission under that Act, and there is no obvious necessity to have such a strict deadline. The move to extend this to 42 days in August was correct and we now want to see this changed permanently to help future victims."

BIBA have also pushed for the Government to provide advice for consumers and businesses on the value and benefits of insurance and what is specifically covered under the Riot (Damages) Act.

We've already blogged about the impending deadline for the claiming of damages from the August 2011 riots.

Source

 ABI and government in talks over riot compensation - August 2011
 

It has been confirmed that the ABI are in talks with the Home Office and Treasury to determine exactly which claims can be refunded under the Riot (Damages) Act 1886.

Under the act, insurers and the individual affected can be refunded for all legitimate claims relating to a riot, from the police authority.

Prime Minister, David Cameron announced in the House of Commons: "On repairing the damages, I can confirm that any individual, homeowner or business that has suffered damage to, or loss of, their buildings or property as a result of rioting can seek compensation under the Riot (Damages) Act, even if uninsured."

The act outlines that authorities will pay out for damage caused by at least 12 people "riotously and tumultuously assembled."

There has also been confusion in relation to motor claims; these are not specified under the act however David Cameron has suggested that insurers can be refunded for claims from motorists with third party fire and theft cover.

With confusion on where the funding will come from to compensate these claims, a government official advised: "Discussions are ongoing between the Home Office and the Treasury as to how this will be funded. There is no estimate yet for the total cost."

The ABI recently estimated the riots would cost around £200m in damages.

Source – Insurance Times 5-18 August 2011 Issue

 Riot claim notification periods causing confusion - August 2011
 

Following on from the riots which hit our nation’s largest cities last week, it seems a large majority of insurers have failed to adopt a blanket policy on increasing their claims notification period since the government made the decision to extend the notification deadline from 7 to 42 days under the Riot (Damages) Act.

The Association of British Insurers (ABI) welcomed the Prime Minister’s decision on Thursday 11th following a revised estimation figure for claims likely to be paid reaching well over the £200m mark.

The director general of the ABI, Otto Thoresen said: "We will work in partnership with the government, and share our expertise, to make sure the police compensation schemes work effectively and get compensation to people who need it quickly. It is important that, after the sad events of recent days, we do everything we can to help people recover."

If you’ve suffered loss or damage as a result of the riots,you may be able to claim compensation from your local police authority.

For further information on how the riots may affect your policy or how to notify us of a claim, please click here

Source – Insurance Age.

 Preventing water damage in a property - August 2011
 

Recent research which has been conducted by the Association of British Insurers has revealed that nearly one in five claims made on buildings and contents insurance is for damage caused by escape of water, which is estimated to cost £2m every single day.

The research also found that in the past year alone, 371,000 claims were made costing on average just under £2,000.

Other research has also shown that the most likely rooms to be damaged as a result of internal water damage were: kitchen, main bathroom, lounge and main bedroom. Of course, vacant commercial properties are also vulnerable particularly in cold weather as there is no one on site to check for burst pipes.

In view of the increase in water damage claims we have been continually working closely with Waterguard Services Limited, who offers an innovative solution for Residential and Commercial properties designed to prevent water damage by automatically shutting off the water supply in the event of a burst or major leak.

Find out more about our WaterGuard product.

 Riots Insurance Bill Mounts - August 2011
 

The Association of British Insurers has commented on the recent riots which have swooped over our nation during the past few days, saying the industry’s liability could run up to "well over" £100m in damages and lost business.

The shocking riots started on 6th August in Tottenham; however since then they have reached some of the nation’s larger cities including Birmingham, Bristol and Manchester.

With Britain recovering from a recession, these riots have hit at a very fragile time, whilst small retailers have been hit the worst, the riots will undoubtedly affect larger businesses and tourism in the UK.

*Source – The Independent

 London Riots - August 2011
 

With riots now hitting many of the UK’s major cities, a number of claims for damages to properties have been made. Landlords and commercial property owners have all been targeted and pressure is on to clean up the mess.

Riots in Tottenham were spurred by the fatal shooting of 29-year-old Mark Duggan by police on 4 August 2011 during a planned arrest. A peaceful protest at Tottenham police station turned violent, and then spread to neighbouring boroughs over following nights. Shops were looted, businesses and homes were burnt down as well as a number of vehicles set alight and destroyed.

On the night of 8th August the violence spread to Bristol, Birmingham, Leeds, Liverpool and Nottingham. In response to the escalating damage, Prime Minister David Cameron, Home Secretary Theresa May, and London Mayor Boris Johnson all returned back to the capital from their holidays.

Most commercial insurance policies will cover businesses for damage to their premises, including the interruption to their business as a result.

We have a number of experienced loss adjusters on the ground to ensure that claims are processed as quickly as possible, but if you have any queries or need to make a claim please do not hesitate to get in touch with our claims team on 01420 471 989.

 Cadogan Keelan Westall secure increase in delegated authority claims handling - August 2011
 

Cadogan Keelan Westall are delighted to have secured an increase in our delegated authority claims handling limit with Zurich.

This means that Cadogan Keelan Westall now has the ability to pay property claims up to £5,000 without referring them to the insurer. This will speed up yet further settlement to our clients insured with Zurich.

With a dedicated team of claims specialists, Cadogan Keelan Westall will process your insurance claim and ensure that it is dealt with as smoothly and as quickly as possible.

 Rise in crime statistics - July 2011
 

New government statistics show that over the past year there has been a 14% rise in domestic burglaries, in a potential sign that the economic slowdown could be fuelling a rise in domestic break-ins.

The annual crime statistics show that thefts of unattended mobiles, wallets and purses from pubs, property from gardens, and metal or industrial equipment recorded by police rose by 10 per cent.

After a trend over the labour years of a 40% fall in crime, this is a concerning rise that will undoubtedly have repercussions in both the political and insurance worlds.