insurance Archives - Hallett Independent https://www.hallettindependent.com/post/tag/insurance/ Mon, 16 Sep 2024 12:24:37 +0000 en-GB hourly 1 https://wordpress.org/?v=6.9.1 https://www.hallettindependent.com/wp-content/uploads/2024/10/cropped-hallett-favicon-1-32x32.png insurance Archives - Hallett Independent https://www.hallettindependent.com/post/tag/insurance/ 32 32 Cracking the Cistern – A Client’s Personal Experience of a House Flood https://www.hallettindependent.com/post/cracking-the-cistern-a-clients-personal-experience-of-a-house-flood/ Sat, 20 Jun 2020 15:58:00 +0000 https://www.hallettindependent.com/?p=360 The post Cracking the Cistern – A Client’s Personal Experience of a House Flood appeared first on Hallett Independent.

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In the wake of the devastating effects of Storm Dennis, 1,650 homes across the UK have been flooded, we revisit an interview with Clare Pardy.

The following interview with Hallett Independent’s Associate Director Clare Pardy is kindly supplied by Plowden & Smith – painting, fine art and furniture restorers

In the wake of the devastating effects of Storm Dennis, and the news that over 1,650 homes across the UK have been flooded, we revisit an interview with Clare Pardy, Associate Director at Hallett Independent, where she discuss a 2019 flood in the South London home she shares with her husband Stephen.

The flood saw 85 gallons of water pass through Clare and Stephen’s Georgian house, causing substantial damage to the interiors and the furniture.

Clare and Stephen saw the benefit of having their insurance arranged through a specialist broker, Clare’s own firm, Hallett Independent and an expert insurer, AXA XL, which resulted in the smooth running of their claim from start to finish.‍

Interview with Sarah Giles, Director – Business Development

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SG‍

I understand you were on holiday and came home to discover your house had been flooded.‍

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CP‍

Yes, we had been in Berlin but luckily, we live next door to a pub and one of the regulars spotted water streaming down the inside of our first-floor drawing room window. He alerted the pub landlady who had our mobile number and rang us. We were at Cologne station, returning to London by train. We then contacted another neighbour (also the Chair of the Resident’s Committee and a real force of nature!) who immediately set to work with buckets and towels, turned off the water and called an emergency plumber who established the cause as a cracked cistern in the second-floor bathroom.‍

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SG‍

It sounds as if you were very lucky and have great neighbours!‍

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CP‍

Yes, we were and we do. A lot of people think that if you live in central London nobody knows their neighbours, but our square is very different, and we were enormously grateful.‍

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SG‍

So how much damage was actually done?‍

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CP‍

Well my husband calculated that 85 gallons went through the house which is pretty alarming. However, luckily, our guest bedroom is located immediately below the bathroom with the cracked cistern and it seems that the bed absorbed an enormous amount of the water. Although we have pictures on every wall, amazingly only one small etching got water damaged, and all our books escaped unscathed which again, we were astonished at.‍

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SG‍

Some of your furniture was, however, damaged?‍

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CP‍

Yes, a Regency demi-lune card table, an early 18th Century side table and a couple of leather armchairs were damaged, which is why I contacted Plowden & Smith.‍

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SG‍

Why did you choose Plowden & Smith?‍

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CP‍

Well, I have known and worked with Plowden & Smith for over 20 years in a professional capacity and I have seen the work that they have done for many clients over the years.

Our furniture isn’t particularly fine in an antique sense, but it is of its period and both my husband and I were very keen that items were not over-restored and that the patina was respected. The specialists who came to pick the items up immediately understood this, and we knew from the outset that we were in safe hands.

The armchairs (pictured below) had been designed by Stephen and handmade by an old and established firm of furniture makers in the East End and it was important that the calf leather that was used for the re-upholstery had the right feel. Plowden & Smith sent us some examples so we could agree on exactly the right colour and weight.‍

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SG‍

Were you tempted to move out and leave them all to it?‍

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CP‍

Not really, I know a lot of people do in those circumstances, but we felt it was important to be involved. When we bought the house in the 1990s, it was very unloved and had been given the 1970s treatment so we spent a number of years replacing windows, installing panelling, shutters and fireplaces and we were keen to ensure that the period feel we had so painstakingly achieved was not compromised.

Ironically, a friend who is a professional interiors photographer, had asked us whether he could photograph the house a year or so before the cistern went and there had been a big spread in English Home, which only came out a couple of months after the flood. This turned out to be very helpful as we were able to show the loss adjuster the photographs as a way of explaining what we wanted to achieve.

We have been so lucky because everything has gone according to plan and as someone who has been a specialist art and high net worth insurer for almost 40 years, I know that this is not always the case.

I have spent my whole career telling potential clients how important it is to appoint a specialist broker and insurer and it is rather gratifying to demonstrate from a personal perspective the wisdom of this advice!!

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Find out more about our household and private collections insurance: www.hallettindependent.com/households-and-private-collectors

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]]> Why and how to insure art, antiques and collectables https://www.hallettindependent.com/post/why-and-how-to-insure-art-antiques-and-collectables/ Mon, 21 Jun 2021 10:33:00 +0000 https://www.hallettindependent.com/?p=389 The post Why and how to insure art, antiques and collectables appeared first on Hallett Independent.

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Many people have art which they have accumulated or inherited but don’t consider themselves ‘collectors’. As a result, they are often reluctant to regard such possessions as valuable and worth protecting.

But this ignores the fact that antique values are dynamic and change according to prevailing tastes. There are inevitably many categories of art which are not as sought after now as they were say 30 years ago. Notable amongst these and often cited are so-called brown furniture and Victorian pictures by minor artists – precisely the sort of thing that many people have inherited. On the other hand, we all read about the inherited Chinese vase stored for years in a kitchen cupboard or used as an umbrella stand that turns out to be worth hundreds of thousands of pounds

Many of us buy art and antiques mainly because they and are affordable with the aim of furnishing a house not with any plan as to its future value.

Over the years, these accumulations of items do change in value both up and down, but this is not necessarily reflected in the insurance cover. It is all too easy to tick the contents box with a nice easy overall value when it comes to renewal and not actually think what might happen in the event of a specific claim.

While there might be pieces that you would be glad to see the back of, that doesn’t necessarily mean that they don’t have any value just as there will be sentimental objects which you adore but have very little.

Unless you are a keen follower of art market trends, you might not be aware that recent auction house sales have produced high prices say for Arts & Crafts furniture that you have collected for years or that a West End dealer is promoting a painter, work by whom you inherited.

Often, people are equally reluctant to consult a valuer because they think that they will charge a percentage of the value which is not the case or because they think that what they have doesn’t justify it.

Valuers do in fact charge a fee based on time spent and will be happy to give an estimate of this on their first visit.

The costly part for them is identifying and cataloguing the collection so if there are receipts available or good workable descriptions, these will help to keep the cost down.

The valuation process is not a scientific practice but is rather based on a series of criteria such as artist or maker, quality, condition, size and market desirability or fashion.

The major advantage is that an agreed value schedule not only gives the owner peace of mind but means that if there is a claim and a prized possession is lost, damaged or destroyed, they will receive the correct amount of compensation quickly and amicably.

Having got to this stage, what next?

Navigating your way through the thicket of insurance companies is not easy particularly as the specialists do not customarily deal directly. Again, many people equate the idea of specialist with more expense, but the most important element is expertise and understanding. Insurance brokers are there to guide you through this process and their role is to marry the profile of the client to the right insurer at the right price.

Apart from having the right insurance in place, what more should you do to ensure the protection and longevity of your collection?

The insurers will have requirements in terms of security and fire protection and your broker will be able to offer advice on this. Most specialist insurers understand that people do not want to live in Fort Knox and it is the broker’s role to point out factors that will ameliorate the risk like occupancy, location, the nature and value of the collection and of course, claims history.

It is not always appreciated but the price and the terms of your insurance will also be influenced by what underwriters refer to as good risk management and housekeeping, by which they mean, how the collection is hung or displayed and generally taken care of.

It is therefore worthwhile to ensure that you check pictures periodically to ensure that they are secure. Often older pictures for instance are hung with string or even thin wire which can deteriorate over the years. Frames can loosen and often old mounts are not acid free and can diminish the value of a work on paper.

Both pictures and furniture are vulnerable to light and heat and in particular, dramatic variations in either. It is therefore wise to avoid hanging pictures in direct sunlight or over radiators for instance. While humidity and light levels are assiduously controlled in museums, it is not possible or desirable to do this in a home but simple tricks like keeping blinds down when a room is not in use and putting out bowls of water if you are aware that a room is particularly dry, are worthwhile measures.

For those items which are damaged or is simply showing signs of age, it makes sense to consult a specialist conservator. It might only require a light clean but it can make all the difference to your appreciation of the picture or object.

If something from your collection needs to be sent away for re-framing or conservation or possibly on exhibition somewhere, it is vital to ensure that it is moved securely and safely. If it is small and of little value, this can probably be done by you but for anything fragile or valuable, this should be undertaken by a fine art shipper. In the case of sending an items for exhibition, a conservation report which documents in detail the precise state of the item prior to transit will be a requirement.

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]]> Priceless masterpieces stuck in limbo as Russian sanctions bite https://www.hallettindependent.com/post/priceless-masterpieces-stuck-in-limbo-as-russian-sanctions-bite/ Fri, 27 May 2022 10:30:00 +0000 https://www.hallettindependent.com/?p=385 The post Priceless masterpieces stuck in limbo as Russian sanctions bite appeared first on Hallett Independent.

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Hallett Independent’s CEO, Adam Prideaux, has recently been quoted in a Telegraph article on issues facing Russian and Russian affiliated art insurance policies.

It’s emerged that with the current raft of sanctions on Moscow following its invasion of the Ukraine, that dozens of masterpieces loaned between European and Russian museums are stuck in limbo. Major European museums are facing problems trying to return Russian works and get back their own pieces, while important future loans have been cancelled.

With all insurances for Russians and Russian entities on a sanction list having been suspended, Adam brought his expert art insurance opinion to the situation:

“Insurers can neither receive premiums, nor pay claims. Furthermore, the new package of sanctions against Russia includes luxury goods and unfortunately, fine art falls under this bracket.

“There is no clear definition as to what constitutes Russian affiliated risks and therefore, as it stands at the moment, nearly all specialist art insurers are not renewing nor accepting new business from any Russian individual or entity whether sanctioned or not.”

Read the full article here

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Photo caption:

A painting by Wassily Kandinsky, whose works are currently facing a long trip back to Russia from an exhibition in Seoul because of a lack of flights CREDIT: AP Photo/Remy de la Mauviniere

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]]> Flood Re Information https://www.hallettindependent.com/post/flood-re-information/ Mon, 06 Jun 2022 10:52:00 +0000 https://www.hallettindependent.com/?p=399 The post Flood Re Information appeared first on Hallett Independent.

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The effects of climate change have increased episodes of flooding, meaning that an increasing number of properties are being affected.

In this Q&A we explain what Flood Re, an initiative to make flood cover more affordable, is and how it affects you. If you have any further questions about Flood re or flood insurance, please contact our head of private clients Sarah Easom s.easom@hallettindependent.com

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Q. What is Flood Re and why am I paying a premium to them/has my flood risk been passed over to them?

A. Flood Re, a not for profit ‘fund’ or ‘pool’, is an initiative between the government and the insurance industry, was set up in 2016 in order to make flood cover more affordable for properties deemed to be at risk of flooding.

Any insurer who offers household cover must pay a ‘levy’ contribution into the Flood Re pool.  Insurers can then choose to cede the flood risk on certain policies totally to Flood Re.  If your insurer does this, they will tell you and also confirm the Flood Re premium (the entirety of which is paid to Flood Re, your insurers do not keep any).  The premium is a set premium based on the property’s Council Tax band.   The excess is £250.

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Q. Why do we need Flood Re?

A. The effects of climate change have increased episodes of flooding over the past 10 years and will continue to do so. An increasing number of properties have already been effected and will be continue to be. The severity of flood claims has also increased, with an average claim amount now said to be £50,000.

When a particular risk increases with the possibility of a large number of people being affected, it can become difficult for individual insurers to offer cover at affordable premiums – which is bad news for customers.  A re-insurance scheme was therefore set up to keep flood premiums affordable and allow insurers to continue to offer this cover.

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Q. Who tells me if my home is in a flood area?

A. Insurers calculate flood risk a number of different ways: using data from the environment agency, from flood mapping software plus data they have collected from their own claims and from other sources – like the Association of British Insurers ABI.  As insurers use different data they do all vary in approach.  However, the criteria for being able to cede a risk to Flood re is set.  See below for who qualifies for Flood Re.

You can check your flood risk here  https://www.gov.uk/check-long-term-flood-risk

Many insurers will consider your property at a high risk of flooding if you have a habitable basement as you are at risk from surface water flooding as was seen in the London flash floods in summer 2021.

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Q. How will my claim by dealt with by Flood Re?

A. The claim would be dealt with by your broker and/or insurers as with any other claim.  Flood Re will work behind the scenes with the insurers to re-imburse you for any payments that need to be made so there will be no need for you to contact Flood Re directly.

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Q. What cover do I need against flooding?

A. As well as cover for your buildings and contents, you should check your policy offers cover for temporary accommodation or for any rent you are still legally required to pay; and any rent you will no longer be paid until your property can be loved in again.  Check your policy for limits in relation to this.

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Q. Do I qualify for Flood Re?

A. There are some conditions applicable in order to qualify for Flood Re cover. The main ones are:

•   Properties that are held in the name of an individual, trust, or personal representative of an individual

•   Private residential properties

•   Properties that are lived in by the individual or their immediate families.  Alternatively, they must be unoccupied

•   Properties with a Council Tax Band A-H

•   Built before 1st January 2009

•   Property is located within the UK comprising England, Wales, Scotland and Northern Ireland (excluding the Isle of Man and the Channel Islands)

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Useful websites and further reading

Flood Re https://www.floodre.co.uk/

Ecclesiastical https://www.ecclesiastical.com/individuals/home-insurance/flood-re/

Axa XL  https://axaxl.com/-/media/axaxl/files/pdfs/campaign/reinsurance-outlook/downloads/rebranded-axa-xl-government-pools-report.pdf?sc_lang=en&hash=916BF269442F5335CA94CCBEB1667F03

Aviva https://www.aviva.co.uk/insurance/home-products/buildings-insurance/the-flood-re-scheme/

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]]> BT Redcare Closure And What it Means For You https://www.hallettindependent.com/post/bt-redcare-closure-and-what-it-means-for-you/ Wed, 22 Nov 2023 17:30:00 +0000 https://www.hallettindependent.com/?p=338 The post BT Redcare Closure And What it Means For You appeared first on Hallett Independent.

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On the 1st February 2024, BT announced that it is withdrawing its Redcare alarm signalling facility and operations will cease completely from the 1st August 2025. This means that fire and security alarms using this type of remote signalling will need to upgraded to a new remote signalling system.

How This Can Affect Your Insurance Policy

Your insurers will have agreed your policy cover based on the information disclosed to them at the time of inception and on the basis of you having an alarm with remote signalling which is maintained under a contract.  If changes are to be made to your alarm system, you must inform your insurance company of those changes so they can agree them and approve the new system.

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What You Need To Do

If you are an existing Redcare client, it is imperative that you contact your alarm system provider to ensure that an alternative and appropriate replacement can be installed before the 1st August 2025 and that remote signalling will continue uninterrupted. Alarm providers are expecting a surge in demand and installation capacity may be in short supply, so do not delay.

The replacement to consider should comply to the latest “DP3” (dual path) Grade as being the most appropriate.

Please contact us if you have any questions about your current insurance obligations and/or the alternative system suggested by your alarm company and we will check it with your insurers.

*Your alarm installer must have an NSI or SSAIB accreditation in order for your alarm to qualify for a policy response.

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What Happens If You Do Nothing

If you do not arrange for your alarm signalling to continue uninterrupted and your cover is based on remote signalling being in place, you are not meeting your policy conditions and are jeopardising any claim for theft or fire, as insurers are within their rights to reject such a claim.

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Click here to find out more here

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]]> Redcare Alarm Signalling is Being Withdrawn https://www.hallettindependent.com/post/redcare-alarm-signalling-is-being-withdrawn/ Sun, 03 Dec 2023 13:23:00 +0000 https://www.hallettindependent.com/?p=421 The post Redcare Alarm Signalling is Being Withdrawn appeared first on Hallett Independent.

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BT Redcare, a provider of alarm transmission has announced it will cease operation as of August 2025. If you are a customer, you should have received a written notice from them by post or email advising you of the planned closure.

Important Next Steps (if you have an alarm with Redcare signalling)

1. It is essential that you immediately speak to your security and fire protection system provider to see what the alternatives to Redcare are.  Do not delay doing this as there may be supply and demand issues due to so many systems having to be replaced or upgraded.

2. Once you have been provided with details for an alternative system(s), we strongly recommend you provide us (or your insurance broker) with the details before you agree to any alternative, so we can check with your insurer that the suggested system is comparable and acceptable.  We are aware that some alternatives being suggested are not comparable to the Redcare signalling, which has been considered the gold standard of signalling for many years.

3. Insurance approved and certified alarm transmission systems are categorised as either single path (SP) or dual path (DP) and will also be attributed a category, typically 1-4 for dual path systems, with systems noted as SP3, DP2 etc. A comparable to a Redcare GSM system would need to reflect a dual path transmission system meeting a minimum of category 3 (DP3).

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Contact us with any questions

Sarah Easom
Head of Private Clients
+44 (0)207 612 2771
s.easom@hallettindependent.com

Caroline Webb
Claims Manager
+44 (0)1590 646 711
c.webb@hallettindependent.com

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www.aviva.co.uk/risksolutions/news-and-insights/closure-of-bt-redcare-operations

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