NEWS BOARD
The following articles are provided for general information purposes and relate to real claims. We have changed the names of some parties in order to protect the identity of those concerned.
We are always happy to hear your stories and to learn from others, so please feel free to drop us a line.
Making a 'hash' of it! Aviva cultivation condition that can leave you light headed.
Making a 'hash' of it! Aviva cultivation condition that can leave you light headed.
For some time now Aviva have included cultivation endorsement, (EFP019), within their property owner policy, and it's a nasty little blighter that's catching many insured parties off guard.
To make matters worse, the endorsement is poorly worded and wide open to misinterpretation by adjusters and claims handlers alike. At this time Aviva seem unable to reach timely decisions when it comes to many of these cultivation claims, taking several months to decide whether or not they will accept liability.
When Aviva do finally reach a decision, we are experiencing situations, whereby such are incorrect. One example recently came to light when we were asked to look at a repudiated claim, damage to a rental property, loss being £18,000. Aviva repudiated and the insured was forced to sell the property and in so doing lost all equity held within the same.
We examined the legal basis for repudiation and found this to be flawed. Insurers had failed to correctly interpret and apply their own policy wording.
Eventually we did persuade Aviva to accept their errors and liability attached. Telling of their errors was the fact that insurers paid not only, 100% of the buildings claim, but also, six months loss of rent, council tax and solicitors fees re the sale of the property.
On top of this, Aviva also paid 8% interest, (on all monies), from D.O.L.
Given the increasing incidents of cannabis cultivation hitting the private rental market I would consider my choice of insurer very carefully. At the very least, we would strongly suggest that every insured be made aware of the specific nature of Aviva endorsement, EFP019, and that if they are ever unfortunate enough to suffer such a loss, that they obtain advice before submitting their claim.
As always; should you have any questions re the above issue, just drop a line to: [email protected]
VALUE at RISK (V.A.R.) Not to be overlooked.
So... what's your property worth?
We think we know what our homes are worth, but is this the question we should be asking the insured? ... Well no, not really.
Don't fall into the VAR trap. The insured, (especially the commercial property owner), will frequently underestimate the 'rebuild' value of their property, basing their assumptions on 'market' sales values.
We would always recommend that commercial property owners take the step of having a professional buildings valuation undertaken by a qualified party. By recommending such, a broker will protect not only their insured from 'Average' but will protect themselves from the risk of a P.I. claim arising from an alleged failure to correctly advise.
For further advice or to utilise our VAR calculations service, just call our office on: 01254 879 375.