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UK Property Insurance

Any business venture can be a risky investment and no more so than when taking the weather and mother nature into consideration. Most businesses have much more invested in the structure itself than anything else and just about every business in the UK has dealt with property damage. Flooding, fires and extreme weather can wreak havoc on your location and bring all operations to a halt. The down time from repairs adds to the costs and in extreme cases you may need to completely relocate temporarily. The United Kingdom has its fair share of extreme weather from the legendary rainfall to tornadoes and flooding. Property insurance can also help protect contents of the property depending on the policy, some plans offer several types of payouts depending on the risks and the type of business being operated.

Property insurance is sometimes known as building insurance and is generally meant to cover the physical structure from certain types of weather, natural disaster or fire. There are two main types of property insurance called named perils and specific perils, where the perils are the actual risks the policy will compensate for. Open peril policies basically cover all losses over a range of causes with a few specifically named items excluded. An example would be a policy that covers for extreme weather like floods and lightning strikes, but not for natural disasters like earthquakes. Many people are quick to think that is perfect for the UK since it is not known for earthquakes, but one did strike as recently as 2008. A specific peril policy, also known as a named peril policy is one in which only the specific named items in the policy are covered. These are commonly used in areas known for particular risks like floods and can also be used in conjunction with an open peril policy to provide the best possible protection.

Other insurance products which may be useful to UK citizens include public liability cover, insurance for builders or even hairdresser insurance.

Policies will vary widely particularly with the contents of the structure, depending on your needs you may require coverage of account information, records, securities, money or even computers and machinery. What exactly is covered is just one aspect of business property insurance, you also need to consider the type of payout the insurer is going to provide. Each individual provider will detail what value of replacement they will pay such as paying the value of the items at the time of original purchase or if the items value will be adjusted for appreciation or depreciation. The values for depreciation and appreciation vary but typically do not go more than twenty percent. Many policies offer provisions that allow for an increase in compensation if the cost of construction rises from the time of the original policy.

Property insurance can also be written to provide some assistance when property damage does incapacitate your business. Many coverage providers in the UK offer extra expense options in their policies for business interruption which keeps your taxes, debts and payroll paid while reconstruction is taking place. Another common extra expense option is the coverage of relocation, new equipment and new merchandise that can keep your business operating regardless of the situation.

As with other types of insurance property coverage is based on risk and reducing the risk can reduce your costs. Things like fire suppression systems and safety procedures can greatly reduce your business insurance costs and in some cases may be required by the provider before a policy can be issued. Depending on the type of business, you may also be required by UK law to carry additional property and building insurance. The best thing any organization can do is to consult a professional that is registered with the FSA in the United Kingdom, then together you can assess your situation and develop a plan for the best protection.
 


 

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