Landlord Insurance - Policy wording September 2014
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Landlord Insurance
Policy wording
September 2014Contents
Welcome to AXA 3
Your policy 3
Important phone numbers 4
Meanings of defined terms 6
Policy conditions 7
Sections of cover
Buildings section 12
Rental income section 28
Property owners liability section 34
Employers’ liability section 42
Terrorism insurance section 47
Landlord’s contents section 50
Making a complaint 57
Defined terms are highlighted in bold blue see page 6 and the start of each section of cover
for their meanings
2Welcome to AXA
Thank you for choosing AXA Headings have been used for your
guidance and to help you understand
Please read carefully all documents
the cover provided. The headings do not
that we have provided and keep them in
form part of the contract.
a safe place.
To help you understand the cover
If you have any questions, need anything
provided we have added ‘What is
explaining or believe this contract does
covered’ and ‘What is not covered’.
not meet your needs, please contact us.
Under the heading ‘What is covered’
we give information on the insurance
Your policy provided. This must be read with ‘What
This policy is a contract of insurance is not covered’, the policy conditions
between you and us. and the section conditions at all times.
The information, or any declaration, Under the heading ‘What is not covered’
which you or anyone on your behalf we draw your attention to what is
has provided to us in applying for the excluded from your policy.
insurance together with your policy,
forms the basis of the contract.
The policy describes the insurance
cover for which we have accepted
your premium.
This insurance is renewable provided
that we agree to accept your premium
for any subsequent period of insurance.
A new schedule will be issued for
each period of insurance showing any
changes to your cover.
Your policy is divided into a number of
sections. The policy wording, schedule
and any endorsement must be read
together. Where a section does not
apply, your schedule will state that it is
‘not covered’.
Throughout this policy, we use defined
terms. Defined terms are used to
explain what a word means and are
highlighted in bold blue print. Details of
the policy definitions can be found on
page 6.
3Important phone numbers
Glass replacement service* 0870 870 7171
A quick and efficient service available 365 days a year.
Legal and tax advice** 0870 241 8178
Our confidential legal and tax advice line. Please quote AXA Commercial
when you call.
Emergency helpline*** 0870 241 8178
Our 24 hour emergency helpline. Please quote AXA Commercial when
you call. We will provide details of reputable contractors who will be
able to help.
If connected to a potential claim please follow the Claims notification
condition and Claims procedures condition first.
* The Glass replacement service is provided by Glassolutions, Waterlands,
Meadows Road, Brookfields Park, Manvers, Rotherham, S63 5DJ.
** The telephone legal and tax advice is provided on behalf of Arc Legal Assistance Ltd
by Irwin Mitchell Solicitors and can advise on general UK law and taxation.
** Tax telephone advice provided by Irwin Mitchell Solicitors may involve the use of
external accountants to provide tax telephone advice.
** Arc Legal Assistance Ltd make no additional charge for providing these services.
*** The emergency assistance helpline is provided on behalf of Arc Legal Assistance Ltd
by AXA Assistance UK. Arc Legal Assistance Ltd make no additional charge for providing
these services.
Arc Legal Assistance Ltd is authorised and regulated by the Financial Conduct Authority.
Their Firm Reference Number is 305958.
Irwin Mitchell LLP is a limited liability partnership registered in England and Wales, with
number OC343987, and is authorised and regulated by the Solicitors Regulation Authority.
Telephone calls may be monitored and recorded.
Defined terms are highlighted in bold blue see page 6 and the start of each section of cover
for their meanings
4Making a claim Making a complaint
If you need to make a claim please If you are not happy with the way in
first check your policy to make sure which a claim or any other matter has
you are covered. You must then follow been dealt with, please read ‘Making a
the instructions provided on page 8 complaint’ on page 57 of the policy.
under the Claims notification condition
and Claims procedure condition under
Policy conditions.
5Meanings of defined terms
These meanings apply throughout your d a
voluntary helper or taking part
policy. If a word or phrase has a defined in a work experience or training
meaning, it will be highlighted in bold blue scheme
print and will have the same meaning and under your control or supervision.
wherever it is used. There are additional
defined terms under each section.
Excess
Business The first amount of any claim or claims
for which you are responsible.
The business described in your
schedule including
1 the management and upkeep of
Period of insurance
your property and land at the same The period from the start date to the
address expiry date shown in your schedule.
2 providing and managing facilities
primarily used for fire prevention, Policy
safety or security at your property
The policy and schedule and any
3 private work completed with your endorsements attached or issued.
prior consent by an employed
person for your directors, partners or
officers Policy territories
4 the sale or disposal of business Great Britain, Northern Ireland, the
assets. Channel Islands and the Isle of Man.
Employed person(s) Property
1 Anyone under a contract of service or The buildings at the address(es) shown
apprenticeship with you in your schedule.
2 Anyone who is
We/us/our/ourselves
a employed by you or for you on a
labour only basis AXA Insurance UK plc.
b self employed
c hired to you or borrowed by you You/your/yourself
from another employer The person(s), firm, company or
organisation shown in your schedule as
the insured.
Defined terms are highlighted in bold blue see page 6 and the start of each section of cover
for their meanings
6Policy conditions
These are the conditions of the cover been notified, paid or is outstanding
and apply throughout your policy. There in the current period of insurance, we
are additional conditions under each will refund part of the premium paid,
section of cover. If you do not comply proportionate to the unexpired period
with these conditions you may lose all of insurance following cancellation
right to cover under your policy or to minus an administration fee of up to
receive payment for a claim. £35. Where a claim has been notified,
If you are unsure about any of these paid or is outstanding the annual
conditions or whether you need to notify premium remains due in full.
us about any matter, please contact us. 3 We can cancel the policy
a by giving you 30 days written
Arbitration condition notice if
If we agree to pay your claim and you i there is a material change in
disagree with the amount to be paid it your business
may be referred to an arbitrator who is ii t he information that forms the
jointly appointed. Alternatively, depending basis of this contract changes
on the size of your business, you may be
iii following a survey at any of
able to refer your case to the Financial
your properties or sites we
Ombudsman Service (FOS). In either case
have required you to make risk
this will not affect your right to take action
improvements and you have
against us over this disagreement.
not completed these within
a reasonable period of time
Cancellation condition advised by us
1 Y
ou may cancel your policy within b immediately, if the premium has
14 days of receiving your policy not been paid.
for the first period of insurance if Where the policy is cancelled in
for any reason you are dissatisfied accordance with any of the above
or the policy does not meet your provisions, we will refund part of the
requirements. If you cancel this premium paid, proportionate to the
way, provided no claim has been unexpired period of insurance following
notified, paid or is outstanding, we cancellation, provided that no claim
will return the premium paid minus an has been paid or is outstanding in the
administration fee. Where a claim has current period of insurance.
been notified, paid or is outstanding
the annual premium remains due Cancellation of this policy will not affect
in full. any claims or rights you or we may have
before the date of cancellation.
2 Y
ou may also cancel this policy at any
time if you sell the business or sell all We do not have to offer renewal of
the property insured shown in your your policy and cover will cease on the
schedule, or you cease trading. If you expiry date.
cancel this way, provided no claim has
7Policy conditions continued
Change in risk condition 2 immediately
You must tell us as soon as possible of a on receipt send us every letter,
any change in circumstances or alteration court order, summons or other
to the risk during the period of insurance legal documents served upon you
which may affect this insurance. If you do b tell us about any prosecution,
not comply with this condition we have inquest or fatal accident inquiry or
the right to refuse to pay your claim. dispute for referral to adjudication or
We do not have to accept any request court proceedings in connection with
to change your cover. If we accept any any potential claim under this policy
change to the cover, an increase in the c notify the police of any loss or
premium or different terms or conditions damage that has been caused
of cover may be required by us. by malicious persons, thieves,
rioters, strikers or vandals.
Changes in your policy If you do not comply with this condition we
condition have the right to refuse to pay your claim.
By accepting this policy you understand
that we provide an online service. Claims procedures condition
We agree to provide you with all your 1 You must take, or allow others to
documents electronically for you to take, practical steps to prevent
print yourself. further loss or damage, recover
It is your responsibility to make any property lost and otherwise
changes to your policy online. We minimise the claim.
reserve the right to charge up to £35. If 2 At your expense you must provide
you request us to send your insurance us with
documentation by post and reserve the
right to charge up to £35 for any change a full details in writing of any injury,
or correction to your policy that we loss or damage and any further
make on your behalf. information or declaration we may
reasonably require
b any assistance to enable us to
Claims notification condition settle or defend a claim
You or your legal representative must
c d
etails of any other relevant
1 as soon as practical insurances.
a give us notice of any 3 You, or anyone else who is claiming
circumstances which might lead under this policy, must not make
to a claim under this policy any admission, offer, payment or
b give us all the information we promise or reject a claim without our
request written permission.
Defined terms are highlighted in bold blue see page 6 and the start of each section of cover
for their meanings
8Policy conditions continued
4 Following a claim you must allow us Law applicable to this policy
or anyone authorised by us
You and we can choose the law which
a access to premises applies to this policy. We propose that
b to take possession of, or request the Law of England and Wales apply.
delivery to us of any property Unless we and you agree otherwise, the
insured. Law of England and Wales will apply to
this policy.
5 You must not abandon any property
to us.
6
We will be allowed complete control
Misrepresentation and non-
of any proceedings and settlement
disclosure condition
of the claim. The contract of insurance is formed on
the reliance of information which you
If you do not comply with this condition
provide to us. You must
we have the right to refuse to pay your
claim. 1 disclose all information relevant to
this insurance
Fraud condition 2 not make any statement which is
If you or anyone acting for you: incorrect.
1 knowingly makes a fraudulent or If you fail to disclose information
exaggerated claim under your policy; relevant to this insurance or make any
statement which is incorrect we will, at
2
knowingly makes a false statement our option, either
in support of a claim (whether or not
1 make the policy void from the date
the claim itself is genuine); or
the contract was formed
3
knowingly submit a false or forged
2 refuse to pay your claim.
document in support of a claim
(whether or not the claim itself is
genuine), Payment of premium
We will: condition
a refuse to pay the claim; You can choose to pay your premium
either in full or by instalments.
b declare the policy void, treating it
as if it had never existed without any
refund of premium; and Payment in full
c recover any sums that we have If you choose to pay in full your payment
already paid under the policy will be debited from your payment
in respect of the claim and any card immediately and will appear on
previous claims. your statement within 3 working days.
We will also debit your payment card
We may also inform the police of the
for any additional premium including
circumstances.
administration fees that may arise from
any alterations made to your policy.
9Policy conditions continued
Any refund of premium due as a result debt. We reserve the right to add an
of changes made to your policy will be administration fee to the value of
credited to your payment card within your debt to cover costs incurred.
3 working days.
Policy administration fees
Payment by instalments
condition
If you choose to pay by instalments you
will enter into a credit agreement with AXA We may charge you an administration
Insurance. Further details will be available fee if we
if you select this payment option. Your 1 make any changes to your policy on
deposit will be debited from your payment your behalf
card immediately and will appear on your 2 agree to cancel your policy, or
statement within 3 working days.
3 are requested to print and re-send
If you make any change to your policy
your policy documents to you.
that affects your premium, you will
receive written notice of the changes to We will not make a charge without
your payments. informing you.
Any related administration fees that
may arise from these changes will Reasonable care condition
be debited from your payment card
immediately and will show on your You must take reasonable steps to
statement within 3 working days. 1 prevent or protect against injury, loss
You may change your payment method or damage
from instalments to payment in full 2 keep your premises, machinery,
at any point during the period of plant and equipment in good
insurance. condition and in full working order
If you fail to make your monthly 3 remedy any defect or any danger
payment(s) in full by the due date, we that becomes apparent, as soon
will seek to recover all monies and may as possible.
1 charge an administration fee for If required by us, you must allow access
instalments rejected by your bank to your premises and/or activities of
2 terminate your instalment your business to carry out inspection or
agreement with immediate effect survey. You must comply with any risk
improvements that we ask for, within a
3 cancel your policy reasonable period of time, advised by us.
4 apply an administration fee of If you do not comply with this condition
up to £35 you may not receive payment in respect
5 refer details of your policy to our debt of a claim.
collection agencies that will seek
to recover all monies on our behalf
and may record the outstanding
Defined terms are highlighted in bold blue see page 6 and the start of each section of cover
for their meanings
10Policy conditions continued
Subrogation (our rights)
condition
We will be entitled to undertake in your
name or on your behalf
1 the defence or settlement of any
claim
2 steps to enforce rights against any
other party before or after payment is
made by us.
Third party rights condition
A person who is not a party to this
policy has no rights under the Contracts
(Right of Third Parties) Act 1999 to
enforce any term of this policy.
11Buildings section
Meanings of defined terms
Contents of this section You can find the meanings for words in
Meanings of defined terms 12 bold blue on page 6. There are some
words that may only appear in this
What is covered 13
section or are defined differently and
Optional cover 16 their meanings are shown here.
Limit of cover 17
Extensions of cover 17 Buildings
What is not covered 23 The buildings at the property shown in
your schedule including:
Section conditions 25
1 landlords fixtures and fittings
2 outbuildings, annexes, private
garages, gangways, foundations or
footings, swimming pools, tennis
courts, squash courts
3 walls, gates, fences and hedges
4 yards, car parks, roads, pavements,
paved terraces, patios, paths, drives
5 underground pipes and cables
belonging to you or which you are
responsible for
6 tenants improvements which you are
responsible for
7
fixed glass in windows, doors,
fanlights, skylights, partitions and
fixed sanitaryware.
Consequential loss
Loss, resulting from interruption of or
interference with the business as a
result of damage to property used by
you, at the property, for the purpose of
the business.
Defined terms are highlighted in bold blue see page 6 and the start of each section of cover
for their meanings
12Buildings section continued
Damage/damaged connection with any organisation(s) or
government(s) committed for political,
Accidental loss or destruction or
religious, ideological or similar purposes
damage.
including the intention to influence any
government and or put the public or any
Empty section of the public in fear.
Wholly unoccupied, mainly unoccupied or
For the Channel Islands and the Isle
not in use by you or any of your tenants
of Man: an act of any person(s) acting
for more than 30 consecutive days.
on behalf of or in connection with any
Flood organisation which carries out activities
directed towards the overthrowing or
The escape of water from the normal influencing by force or violence of any
confines of any natural or artificial water government de jure or de facto.
course, lake, reservoir, canal, drain
or dam. Inundation from the sea. Rain Vermin
induced run off. Whether resulting from
Rats, mice, grey squirrels, owls,
storm or not.
pigeons, foxes, bees, wasps, or
Hacking hornets.
Unauthorised access to any computer, Virus or similar mechanism
other equipment, component, system
Program code, programming instruction
or item which processes, stores,
or any set of instructions intentionally
transmits or retrieves data.
constructed with the ability to damage,
Terrorism interfere with or otherwise adversely
affect computer programs, data, files
For England, Scotland and Wales: an or operations whether involving self
act of any person(s) acting on behalf of replication or not. The definition of virus
or in connection with any organisation or similar mechanism includes but is
which carries out activities directed not limited to trojan horses, worms and
towards the overthrowing or influencing logic bombs.
by force or violence of any government
de jure or de facto as certified by Her
Majesty’s Government or H M Treasury What is covered
or any successor relevant authority. If any property is damaged by any of the
For Northern Ireland: an act including, following causes, we will pay you for the
but not limited to the use of force or value of the property at the time it is
violence and or threat thereof of any damaged or the amount of the damage,
person or group(s) of persons whether or at our option reinstate or replace the
acting alone or on behalf of or in property or any part of it.
13Buildings section continued
Causes c
damage to moveable property in
1 Fire, lightning or earthquake. the open, walls, fences, posts,
hedges and gates
2 Explosion excluding
d the excess detailed in your
damage caused by or consisting of the
schedule.
bursting by steam pressure of a boiler
economiser or other vessel, machine 5 E
scape of water from any tank,
or apparatus where internal pressure apparatus, pipe, or sprinkler
is due to steam only, that belongs to installation excluding
you or is under your control, unless it a
damage to property caused by
is used for domestic purposes only. frost other than internal plumbing
3 Riot, civil commotion, strikers, installations not in any outbuildings
locked out workers, labour or b
damage to any building which is
political disturbances, vandals or empty
malicious persons excluding c
the excess detailed in your
a
damage caused by confiscation, schedule.
destruction or requisition by order 6 Impact by any aircraft or other aerial
of the Government or any Public devices, vehicle or any article falling
Authority from them or by animals excluding the
b
damage arising from stoppage of excess detailed in your schedule.
work 7 Leakage of fuel oil, used solely
c
damage caused by your for domestic purposes, used in
employees, tenants or any other connection with the buildings excluding
person lawfully on your property a damage to any portion of the
d damage to any portion of the building which is empty
building which is empty b
the excess detailed in your
e
damage caused by theft or schedule.
attempted theft 8 Theft or attempted theft but
f the excess detailed in your excluding
schedule. a damage to any building which is
4 Storm or flood but excluding empty
a
damage due to a change in the b damage caused by your
water table level employees, tenants or any other
b
damage resulting from frost, person lawfully on your property
subsidence, ground heave or c the excess detailed in your
landslip schedule.
Defined terms are highlighted in bold blue see page 6 and the start of each section of cover
for their meanings
14Buildings section continued
Optional cover b faulty or defective workmanship,
operational error or omission by
9 Accidental damage
you or any of your employees
Your schedule will show if you have this
but we will cover subsequent damage
cover.
which results from a cause not
The Buildings section is extended to excluded elsewhere in the policy
include the following cause
4 the collapse or cracking of buildings
Any other damage excluding
5 the cost of normal maintenance,
1
damage which is excluded under redecoration or repair
causes 1 to 8 or under ‘What is not
6 losses directly or indirectly caused
covered’ of the Buildings section
by or resulting from damage to
2 damage caused by or resulting from: any computer or other equipment,
a wear and tear, the action of light component, system or item which
or atmosphere, moths, vermin or processes, stores, transmits or
insects retrieves data or any part of it, whether
tangible or intangible (including any
b any process of cleaning, dyeing, information, programs or software)
restoring, adjusting, repairing, and whether your property or not,
cutting, preparation or fitting where damage is caused by virus or
c corrosion, rust, dampness, similar mechanism or hacking
dryness, wet or dry rot, shrinkage, But we will pay you for damage not
marring, or scratching excluded elsewhere in the policy,
d wind, rain, hail, sleet, snow, dust which itself results from a cause
or theft to boundary walls, gates, 1 to 8, except for damage by malicious
fences or moveable property in persons other than thieves
the open 7
damage caused by or consisting of
e subsidence, ground heave or a mechanical or electrical
landslip of any part of the site on breakdown or derangement of the
which the property stands particular machine, apparatus or
f the normal settlement or bedding equipment where the breakdown
down of new structures or derangement originates
3 damage to property caused by or b joint leakage, failure of welds,
consisting of cracking, fracturing, collapse or
overheating of boilers, economisers,
a inherent fault or defect,
super heaters, pressure vessels or
undiscovered defect, gradual
any range of steam and feed piping
deterioration, frost, change in water
in connection with them
table level, faulty or defective design
or materials
15Buildings section continued
But we will pay you for subsequent 4
damage which originated prior to the
damage which results from a cause not start of this cover
excluded elsewhere in the policy. 5
damage to solid floor slabs or
8 the excess detailed in your schedule. damage resulting from their
movement, unless the foundations
beneath the outside walls of the
Optional cover main building of the property are
9 S
ubsidence ground heave and damaged at the same time by the
landslip cover same cause
Your schedule will show if you have 6
damage resulting from demolition,
this cover. construction, structural alteration or
Subject to the following special repair of any property or groundwork
condition we will pay you for damage or excavation at the property.
caused by subsidence or ground heave
Special conditions applicable to
of any part of the site on which the
subsidence, ground heave and
property stands or landslip excluding
landslip cover
1 the excess detailed in your schedule
a D
emolition, groundworks, excavation
2
damage to yards, outdoor swimming or construction condition
pools, tennis courts, paved terraces,
You must tell us as soon as
patios, drives, car parks, roads,
possible if you become aware of any
pavements, walls, gates and fences
demolition, groundworks, excavation or
unless the building structure is also
construction being carried out on any
damaged at the same time by the
adjoining site to the property. We will
same cause
then have the right to vary the terms or
3 damage caused by or consisting of cancel this cover.
a t he normal settlement or bedding b T ree inspection and pruning
down of new structures condition
b t he settlement or movement of In accordance with the Reasonable
made-up ground care policy condition, you must arrange
c coastal or river erosion annually, at your own expense, for a
d d
efective design or workmanship tree surgeon or similar professional to
or use of defective materials i inspect trees within 10 metres of
e f ire, subterranean fire, explosion, the property and over 5 metres
earthquake or the escape of in height to ensure that they do
water from any tank, apparatus or not affect the structure, drains or
pipe sewers at the property
Defined terms are highlighted in bold blue see page 6 and the start of each section of cover
for their meanings
16Buildings section continued
ii p
rune or pollard trees as tenants furniture while the residential
recommended by the tree portion of the property cannot be lived in
surgeon. or access is denied as a result of damage.
If you do not comply with these This cover will only apply where we have
conditions we have the right to refuse made a payment or accepted liability
under the Buildings section of this policy.
to pay your claim.
The most we will pay under this cover
Limit of cover is 20% of the sum insured on the
building that has been damaged for a
The most we will pay for any property maximum period of 24 months from the
covered by this section is the sum date of damage.
insured shown in your schedule for
each item plus index linking. Provided that this cover is not insured
elsewhere.
Extensions Architects, surveyors, legal and
consulting engineers fees cover
Additional metered water cover
We will pay you for the additional We will pay you for architects,
metered water charges incurred by you surveyors, legal and consulting
as a result of damage. Provided that engineers fees necessarily incurred
repairs are completed within 30 days of with our written consent in the
the damage being discovered. We will reinstatement or repair of the property
not cover for the charges incurred for as a result of its damage, but not for
any property that is empty. preparing any claim.
The most we will pay under this cover Cables and underground pipes cover
during any one period of insurance is
We will pay you for the costs incurred
£5,000.
following damage (which you are
The amount we pay will be based on responsible for) to fuel or oil pipes,
the amount of the water charges for the cables (including overhead electricity
period when the damage occurs, less the and telephone cables), septic tanks
charge paid by you for the corresponding and associated pipes, underground
period in the preceding year. This will pipes and drains (including inspection
then be adjusted for changes in the covers) on the property or connecting
suppliers’ charges and for variations the property to the public mains.
affecting your water consumption during
The most we will pay for any one claim
the intervening period.
under this cover is £5,000.
Alternative residential
Capital additions cover
accommodation cover
We will pay you for
We will pay you for costs of reasonable
alternative accommodation for your 1 any newly acquired or newly erected
tenants and temporary storage of your property or property under construction
(excluding any property which a
17Buildings section continued
building contractor is responsible for) b on a different site
which is not insured elsewhere 2 the repair or restoration of damaged
and property
2 alterations, additions and in either case, to a condition equivalent
improvements to property but not for to or the same as but not better or more
any appreciation in value extensive than its condition when new.
anywhere within the policy territories. You have stated the declared value,
Provided that shown in your schedule for each
a
you give us details of the property, and the premium has been
additions as soon as possible calculated accordingly.
and you will ensure specific Declared value means your
insurance is arranged with assessment of the cost of
us from the date you became reinstatement of each property at
responsible the level of costs applying at the start
b t he provisions of this cover will be of the period of insurance (ignoring
fully maintained in addition to any inflationary factors which may operate
specific insurance effected under subsequently) together with an
a above. allowance for
The most we will pay under this cover 1 the additional cost of reinstatement
for any one location is 10% of the total to comply with public authority
sum insured under this section or requirements
£500,000 whichever is lower. 2 professional fees
Day one average cover 3 debris removal costs.
Subject to the following special Special conditions applicable to day
conditions, the amount payable for one average cover
property under sums shown as the
1 At the start of each period of
‘declared value’ in your policy schedule
insurance you must tell us the
will be calculated as reinstatement of
declared value of each property.
the damaged property.
Without this declaration the current
For this purpose, reinstatement means declared value will be taken as the
1 the rebuilding or replacement of declared value for the next period of
damaged property, which provided insurance.
our liability is not increased may be 2 If at the time of damage the declared
completed value of the property you are
a in any manner suitable to your claiming for is less than the cost
requirements of reinstatement at the start of the
period of insurance, our liability for
Defined terms are highlighted in bold blue see page 6 and the start of each section of cover
for their meanings
18Buildings section continued
any damage will be proportionately Drains clearance cover
reduced and will be limited to the We will pay you for the costs and
proportion that the declared value expenses necessarily and reasonably
bears to the cost of reinstatement. incurred by you in clearing, cleaning
3
Our liability for the repair or and/or repairing drains, gutters and/
restoration of property damaged in or sewers to your property or for which
part only, will not exceed the amount you are responsible, following damage
which would have been paid had the to your property.
property been completely destroyed. The most we will pay for any one claim
4 No payment will be made beyond under this cover is £5,000.
the amount that would have been
payable in the absence of this Day European Community and public
one average cover extension authorities cover
a unless reinstatement starts and Subject to the following special
proceeds without unreasonable conditions, the cover on your property
delay also includes the additional cost of
reinstatement that may be incurred
b until the cost of reinstatement solely due to the necessity to comply
has been incurred with the stipulations of
c if the property at the time of the 1 European Community Legislation or
damage is insured by any other
insurance which is not on the 2 Building or other regulations under
same basis of reinstatement. or there to support, any Act of
Parliament or Bye-laws of any Public
If you do not comply with Special Authority
condition 4 or you decide not to rebuild
the property in a condition equal to but referred to as the stipulations, for
not better or more extensive than its a the damage to the property
condition when new then this cover is
b undamaged portions of the
cancelled and our and your rights and
property.
liabilities in respect of the damage will
be subject to the following condition of Excluding
average (under insurance). 1 the cost incurred in complying with
The cover for each property is deemed the stipulations
to be subject to average i.e. if the a for damage occurring prior to the
property at the time of damage is valued granting of this cover
at more than 115% of the declared value
stated in your schedule, then you will b for damage not insured by this
be considered as self insured for the section
difference and will be responsible for a c where you have been served
proportionate share of the loss. notice prior to the damage
happening
19Buildings section continued
d w
here there is an existing 4 The total amount recoverable for
requirement which has to be any property will not exceed its
implemented within a given period sum insured.
e for property entirely undamaged
Extinguishment and alarm resetting
by any insured event
expenses cover
2 the additional cost that would have
We will pay you for the cost of replacing
been required to make good the
and/or replenishing extinguishment
damaged property to a condition the
materials when you, your employees or
same as when new, had the need
the fire brigade attempt to extinguish
to comply with the stipulations not
or minimise loss by fire. Provided that
arisen
the costs and expenses cannot be
3 the amount of any charge or recovered from the public authority
assessment arising out of capital responsible.
appreciation which may be payable
The most we will pay for any one claim
for the property or by the owner to
under this cover is £5,000.
comply with the stipulations.
Glass breakage cover
Special conditions applicable to
European Community and public We will, at our option, pay for or make
authorities cover good any breakage or malicious
scratching of all internal or external
1 Reinstatement work must be
fixed glass, belonging to you or for
started and carried out without
which you are responsible at the
unreasonable delay and must be
property. Provided that the glass is in
completed within 12 months after
good condition and free from damage at
the damage or any further time that
the start of this policy.
we agree (during those 12 months).
We will also pay for the cost of
2 Reinstatement may be carried out
on another site (if the stipulations 1 boarding up and repair to associated
require) subject to our liability under framework, reasonably incurred as
this extension not being increased. a result of an insured breakage. You
may instruct builders or glaziers to
3 If our liability under this section
board up where necessary without
is reduced by the application of
our prior consent
any of the terms and conditions
of the policy, then our liability for 2 removal or replacement of fixtures
European Community and public and fittings which may be necessary
authorities cover will be reduced in connection with the replacement
proportionately. of the glass.
Defined terms are highlighted in bold blue see page 6 and the start of each section of cover
for their meanings
20Buildings section continued
Inflation protection cover unless we or you give written notice to
We will adjust the declared value for the contrary.
property in line with suitable indices of Provided that in the event of
cost and the renewal premium for this reinstatement you will always
section will be based on the adjusted 1 pay the necessary premiums
sums insured. that may be required for the
reinstatement, from the date of
Landscaped gardens cover
reinstatement
We will pay you for the cost of restoring
2 apply any additional risk improvements
any damage caused by the emergency
which we may reasonably require.
services to landscaped gardens, which
you are responsible for, when the Removal of debris cover
emergency services are attending the
property as a result of damage. We will pay you for the costs and
expenses necessarily incurred by you
The most we will pay for any one with our consent in
claim for damage under this cover is
£10,000. 1 removing debris from
2 dismantling and/or demolishing
Mortgagees and other interests cover
3 shoring up or propping
The interest of the leaseholder(s),
mortgagee(s) and tenant(s) in the the portion or portions of the property
individual portions of the property is insured as a result of damage. We will
noted and should be advised to us in not pay for costs or expenses
the event of a claim. a incurred in removing debris
In addition, your interest or the interest except from the site of the
of the mortgagee(s) under this insurance damaged property and the area
will not be prejudiced by any act or neglect immediately adjacent to the site
of the occupiers or mortgagors of any b arising from pollution or
property where the risk of damage is contamination of property not
increased without your or the mortgagees insured by this section.
authority or knowledge. Provided that once
you or the mortgagees are aware of the Removal of debris (tenants contents)
increased risk, you must give us written cover
notice as soon as possible and pay any We will pay you for the irrecoverable
additional premium that we may require. costs and expenses (where they are not
insured elsewhere) incurred by you with
Reinstatement of sum insured after our consent to remove the debris of
loss cover tenants contents following damage.
In the event of loss, the sum insured
by this section will be automatically
reinstated from the date of the loss,
21Buildings section continued
We will not cover for costs or expenses
1 incurred in removing debris except
Theft of building fabric cover
from the site of the damaged
property and the area immediately We will pay you for
adjacent to the site 1
damage to the external fabric of
2 arising from pollution or the property as a result of theft or
contamination of other property not attempted theft
insured by this section. 2
damage following entry of rainwater
as a result of theft or attempted theft
Removal of nests cover of the external fabric of the property.
We will pay you for any one claim for We will not cover the excess shown in
the cost of removing wasps, bees or your schedule for each and every loss
hornets nests from the property. after the application of any average
The most we will pay for any one claim condition.
under this cover is £250. This cover does not apply to any
property which is empty.
Subrogation waiver cover
In the event of a claim under this Theft of keys cover
section we agree to waive any rights, We will pay you for the cost of replacing
remedies or relief which we might have external door locks after the loss of
become entitled by subrogation against keys due to
1 any company standing in relation of 1 theft from the property, registered
parent to subsidiary (or subsidiary to office or from your home
parent) to you
2 theft following hold-up when the keys
2 any company which is a subsidiary of are in the personal custody of you
a parent company of which you are a or any principal, director, partner or
subsidiary employee authorised to hold such keys
in each case as defined by current law 3 reasonable evidence that the
at the time of the damage keys have been duplicated by an
3 any tenant provided that unauthorised person.
a the damage did not result from a The most we will pay for any one claim
criminal, fraudulent or malicious under this cover is £1,000.
act of the tenant
Trace and access cover
b the tenant contributes to the cost
of insuring the property against the We will pay you for the reasonable
event which caused the damage. costs that you incur in finding the
source of damage and repairing it,
caused by
Defined terms are highlighted in bold blue see page 6 and the start of each section of cover
for their meanings
22Buildings section continued
1 the escape of water from any tank, b
we have paid or have agreed to
apparatus or pipe pay for the damage
2
damage to cables, underground c if any payment made by us is
pipes and drains providing services less than the actual cost of the
to the property and for which you are reinstatement or repair of the
legally responsible. damage, then any payment under
The most we will pay for any one this clause, resulting from that
property in any one period of insurance damage, will be reduced by the
under this cover is £10,000. same proportion
2
your liability for VAT does not arise
Transfer of interest cover from the replacement property
having a greater floor area, or being
If at the time of damage you have entered
better or more extensive than the
into a contract to sell your interest in damaged property
the property and the sale has not but is
subsequently completed, the purchaser 3 where the property is reinstated on
another site our liability will not be
will have the full protection of this section
higher than the amount of VAT that
on exchange of contracts, provided it is would have been payable had the
not covered by any other insurance. property been rebuilt on its original site
Unauthorised use of electricity, gas, 4
our liability does not include
oil and water cover amounts you have paid as penalties
or interest for non payment or late
We will pay you for the charges that you payment of VAT
are responsible for if gas, electricity, oil 5
you have taken all reasonable
or water is discharged from a metered precautions to insure adequately for
system, arising from unauthorised use VAT liability at the start of this policy
by persons taking possession, keeping and at each subsequent renewal date.
possession or occupying property
For the purpose of any condition of
without your authority. Provided that
average, reinstatement costs will
you take all reasonable steps to
be exclusive of VAT. Our liability may
terminate the unauthorised use as
be more than the sum insured for a
soon as it is discovered.
property where the additional amount is
The most we will pay for any one claim solely as a result of VAT.
under this cover is £5,000.
Value added tax (VAT) cover What is not covered
We will pay you for VAT, paid by you, Aircraft or aerial devices exclusion
which is not recoverable. Provided that
We will not cover damage caused by or
1 a
your liability for the tax arises as a consisting of pressure waves caused by
result of the reinstatement or repair aircraft or other aerial devices travelling
of the property following damage at sonic or supersonic speeds.
23Buildings section continued
Date recognition exclusion Fraud and dishonesty exclusion
We will not cover damage directly or We will not cover damage which results
indirectly caused by, contributed to or from acts of fraud or dishonesty by you,
arising from the failure of equipment your employees or any other person
(including hardware and software) to who is responsible for the property or
correctly recognise any given date or to results from voluntarily parting with
process data or to operate properly due title or possession of any property
to failure to recognise any given date. as a result of a fraudulent scheme,
But we will cover subsequent damage trick, device or false claim. But we will
resulting from one of the insured cover subsequent damage which itself
causes 1 to 8, which is not excluded results from an insured cause covered
elsewhere in the policy. elsewhere in this policy.
Erasure of data exclusion Illegal activities exclusion
We will not cover damage arising We will not cover damage caused by
directly or indirectly from property being used, by you or any
1 erasure, loss, distortion or occupants, for illegal activities.
corruption of information on
More specific insurance exclusion
computer systems or other records,
programs or software deliberately We will not cover you for any property
caused by rioters, strikers, locked- more specifically insured by you or on
out workers, persons taking part your behalf.
in labour disturbances or civil
commotion or malicious persons Pollution or contamination exclusion
2 other erasure, loss, distortion We will not cover damage caused
or corruption of information on by pollution or contamination except
computer systems or other records, (unless excluded elsewhere) damage to
programs or software unless property caused by
resulting from causes 1 to 8 and it is a p
ollution or contamination which
not excluded elsewhere in the policy. itself results from causes 1 to 8
b a
ny of causes 1 to 8 which
Excess exclusion
itself results from pollution or
We will not cover the excess detailed contamination.
in your schedule.
Where a claim is covered under both Radioactive contamination exclusion
the Buildings and Landlords contents We will not cover damage, or any other
sections you will only be responsible for loss or expense resulting or arising
one of the excess amounts detailed in from damage to any property, or any
your schedule. consequential loss directly or indirectly
Defined terms are highlighted in bold blue see page 6 and the start of each section of cover
for their meanings
24Buildings section continued
caused by or contributed to by or workers or persons taking part in
arising from labour disturbances or malicious
persons.
1 ionising radiations or contamination
by radioactivity from any nuclear fuel If any of the points above are found to be
or from any nuclear waste from the invalid or unenforceable, the remainder
combustion of nuclear fuel shall remain in full force and effect.
2 the radioactive, toxic, explosive In any action, law suit or other
or other hazardous properties of proceedings or where we state that
any explosive nuclear assembly or any loss, damage, cost or expense is
nuclear component of that assembly. not covered by this section it will be
your responsibility to prove that they
Terrorism and Northern Ireland are covered.
exclusion
Unexplained loss exclusion
We will not cover you for loss, damage,
cost or expense of any nature directly or We will not cover for damage caused
indirectly caused by, resulting from or in by or consisting of disappearance,
connection with unexplained or inventory shortage,
misfiling or misplacing of information.
1 For England, Scotland, Wales, the
Channel Islands and the Isle of Man War risk exclusion
a a
ny act of terrorism, regardless We will not cover
of any other cause or event
contributing concurrently or in any 1 any claims caused by or happening
other sequence to the loss through war, invasion, act of foreign
enemy hostilities (whether war is
b a
ny action taken in controlling, declared or not), civil war, rebellion,
preventing, suppressing or in any revolution, insurrection or military or
way relating to any act of terrorism. usurped power
2 For Northern Ireland 2 confiscation, nationalisation,
a a
ny act of terrorism, regardless requisition or damage to property by
of any other cause or event or under the order of any government
contributing concurrently or in any or public or local authority.
other sequence to the loss
b a
ny action taken in controlling, Section conditions
preventing, suppressing or in
These conditions of cover apply only to
any way relating to any act of
this section. If you do not comply with a
terrorism
condition you may lose all right to cover
c riot, civil commotion and (except under your policy or to receive payment
for damage or interruption to for a claim.
the business caused by fire or
explosion) strikers, locked-out
25Buildings section continued
If you are unsure about any of these 3 all refuse and waste materials must
conditions or whether you need to be removed from the interior of the
notify us about any matter, please property and no accumulation of
contact us. refuse and waste is allowed in the
adjoining yards or space owned by you
Change in tenancy condition
4
you must secure the property and
You must tell us of all changes in tenancy put all protective, locking devices
or occupation within the property. and any alarm protection into
If you do not comply with this condition we effective operation
have the right to refuse to pay your claim. 5 t he gas, water and electricity
supplies must be turned off at the
Contribution and average condition mains (except electricity needed to
If, at the time of the claim, there is any maintain any fire or intruder alarm
other policy covering the same property, systems)
we will only be responsible for our 6 d
uring the period 1st October to 31st
proportionate share. March all water systems must be
If any other policy is subject to any drained or the heating system put
average (under insurance) condition into effective operation to maintain
this policy, if not already subject to the internal temperature at a
average, will be subject to average in minimum of 10 degrees centigrade
the same way as the other insurance. 7
you must implement any additional
If any other policy has a condition that protections that we may require
prevents it from paying its share, our within the time scale we specify
share of the claim will be limited to the 8 all damage to the property must be
proportion that the sum insured bears rectified immediately
to the value of the property insured. 9 letterboxes must be sealed
Empty properties condition 10 the final exit door of the property
must be secured by an appropriate
1
You must tell us immediately you
mortice deadlock which has five or
become aware
more levers and conforms to British
a that the property is empty Standard (BS) 3621 or European
b of any damage to the empty Norm (EN) 1303 together with a
property whether the damage is matching metal box striking plate,
insured or not installed in accordance with the
manufacturers recommendations.
2 the property must be inspected
internally and externally at least once If you do not comply with this condition
a week by you or on your behalf and you will not be covered and we will not
a written record of the inspection is make any payment in respect of a claim.
maintained by you
Defined terms are highlighted in bold blue see page 6 and the start of each section of cover
for their meanings
26Buildings section continued
Explosion condition Reinstatement condition
You must ensure that any vessel, If any property is to be reinstated or
machinery or apparatus or its contents replaced by us, then you will at your
belonging to you or under your control, own expense provide all the plans,
which need examination to comply documents, books and information
with any statutory regulations, will that may be needed. We will not be
have a contract providing the required required to reinstate the property
inspection. exactly but only as circumstances
If you do not comply with this condition permit and in a reasonable manner.
you will not be covered and we will We will not pay more than the sum
not make any payment in respect of a insured for any one property.
claim.
Workmen’s condition
Fire extinguishing appliances Joiners and other tradesmen are
condition allowed on the property to make repairs
Fire extinguishing equipment must be or minor structural alterations without
prejudice to this insurance.
1 maintained in efficient working order
2 routinely tested and any defects
promptly rectified.
Flat roof condition
Any flat portions of the roof of the
buildings are to be inspected once
every 2 years by a competent roofing
contractor and any recommendations
implemented.
Individual Flats condition
Where your property is an individual
flat we will only be responsible for
our proportionate share of any claim
relating to portions of the property for
which you are responsible.
Payments on account condition
In the event of damage we can, at our
option, make monthly payments to you
if required.
27Rental income section
Your schedule will show if this section
Contents of this section is covered.
Meanings of defined terms 28
Meanings of defined terms
What is covered 29
You can find the meanings for words in
What is not covered 32
bold blue on page 6. There are some
Section conditions 33 words that may only appear in this
section or are defined differently and
their meanings are shown here.
Notes
1 For the purpose of these definitions
any adjustments implemented
in current cost accounting will be
disregarded.
2 To the extent that you are
accountable to the tax authorities
for Value Added Tax all terms in this
section will be exclusive of such tax.
3 Adjustments will be made as
necessary for trends of the
business and for variations and
other circumstances affecting the
business, either before or after
the damage, or which would have
affected the business had the
damage not occurred so that the
adjusted figure represents as closely
as possible the results which would
have been obtained during the
relative period after the damage.
Annual rental income
The rental income during the 12
months immediately before the date of
the damage.
Defined terms are highlighted in bold blue see page 6 and the start of each section of cover
for their meanings
28Rental income section continued
Damage/damaged Vermin
Accidental loss or destruction or Rats, mice, grey squirrels, owls,
damage to property used by you for the pigeons, foxes, bees, wasps or hornets.
purpose of the business.
Virus or similar mechanism
Empty Program code, programming instruction
Wholly unoccupied, mainly unoccupied or any set of instructions intentionally
or not in use by you or any of your constructed with the ability to damage,
tenants for more than 30 consecutive interfere with or otherwise adversely
days. affect computer programs, data, files
or operations whether involving self
Hacking replication or not. The definition of virus
or similar mechanism includes but is
Unauthorised access to any computer,
not limited to trojan horses, worms and
other equipment, component, system
logic bombs.
or item which processes, stores,
transmits or retrieves data.
What is covered
Indemnity period
The period during which the business Loss of rental income cover
is affected beginning when the damage We will cover you for loss of rental
occurred and ending not later than the income if the property insured under the
maximum indemnity period shown in Buildings section is damaged during the
your schedule. period of insurance and as a result your
business is interrupted or interfered with.
Rental income We will pay you
The money paid or payable to you 1 the difference between your rental
for tenancies and other charges for income and the standard rental
services provided in the course of your income during the indemnity period
business at the property. due to the damage
Standard rental income 2 additional expenditure necessarily
and reasonably incurred. This will
The rental income during the period include the cost of re letting the
in the 12 months (or a proportionately property and the associated legal
increased multiple, if the indemnity fees in trying to avoid or limit the loss
period exceeds 12 months) of rental income that, without the
immediately before the date of the expenditure, would have taken place
damage which corresponds with the during the indemnity period because
indemnity period. of the damage. The amount we pay
29Rental income section continued
will not exceed the amount of the Buildings awaiting sale cover
loss of rental income avoided If at the time of the damage you have
less any business expense saved contracted to sell your interest in the
because of the damage during the property or have accepted a written offer
indemnity period. to purchase your interest in the property
Provided that subject to contract, and the sale is
cancelled or delayed solely due to the
1
we have made a payment or damage, we will pay at your option either
accepted liability under the Buildings
section of this policy 1 during the period before the date
when the property would have
2 if the sum insured detailed in your been sold the actual amount of the
schedule is less than your annual reduction in rental income solely as
rental income, or a multiple of it a result of the damage
where the maximum indemnity
period shown in your schedule 2 during the period starting with the
exceeds 12 months, then the date when the property would have
amount we will pay you will be been sold and ending with the actual
proportionately reduced date of sale, or when the indemnity
period ends if earlier, the loss of
3
our liability under this section will not interest which is
exceed the sum insured shown in
your schedule. a t he interest incurred on capital
borrowed (solely to offset, in
Alternative trading cover whole or part, the loss of use
of the sale proceeds) for the
If during the indemnity period
purpose of financing the business
accommodation is provided other than
at the property, for the benefit of the b the investment interest you have
business, either by you or by others on lost on any balance of the sale
your behalf, the money paid or payable proceeds (after deduction of any
for the accommodation will be taken capital borrowed in 2a above)
into account in arriving at the rental less any amount received in rental
income during the indemnity period. income
Boiler explosion cover 3 the additional expenditure being
We will pay you for loss of rental a the expenditure needed, and
income caused by damage resulting reasonably incurred as a result
from the explosion of any boiler or of the damage, solely to avoid or
economiser at the property belonging minimise the loss payable under
to you or under your control. 1 or 2 above, but not more than
the amount of loss avoided by the
expenditure
Defined terms are highlighted in bold blue see page 6 and the start of each section of cover
for their meanings
30You can also read
