SignElite

In continuation of our previous post in which we established the type of Insurance policy needed for the Sign & Graphics Industry, we now move on to what you should be covering under that policy. This one’s about Buildings and Tenants Improvements so read on….

Firstly to Buildings, are you the owner? If you are it’s generally straight forward. You must insure the buildings at a figure to “rebuild” the premises and NOT the sales value. Whilst there are a number of ways to calculate your own building sum insured you need get it right and obtaining the services of a surveyor is the best way.

Are you a tenant who insures the building on behalf of the landlord? If so make sure your tenancy agreement makes you responsible for this. If it doesn’t then you might just find that in the event of a large loss there are complications. Insurance covers a policyholder’s financial interest in an item and if the responsibility hasn’t been moved to you through the tenancy/lease agreement, it needs to be. A verbal agreement might just not be enough!

An interesting point to note on buildings is the cover. Check to see if the policy covers “theft”. If you have lead on your roof or other similar metals, these are increasingly targeted by thieves. Without theft cover (usual exclusion on buildings policies) if someone takes your roof, cast iron external pipes etc you might find they are excluded.

If you are a tenant and you have improved the landlord’s premises these will be classed as “Tenants improvements”. These might be in the form of additional security, shutters, bars etc or perhaps you have built an internal office within the unit. If the premises are subject to a loss your landlord’s insurers will replace the structure belonging to the landlord and not your offices or other items which you have added to the building.

As a tenant you will probably be responsible for the glass in the building. Most tenancy agreements make the tenant responsible and most Landlords’ policies will have glass as an option. If the landlord is making you responsible through the agreement make sure you have this cover under your policy. A single piece of glass won’t cost you a fortune however a number of large windows put through on a Saturday night plus the boarding up costs will, so beware – check your policy!

The above is for information and guidance only and should not be relied on for individual circumstances and professional advice must always be sought specific to your individual circumstances and requirements. Finally any and all comments referred to anywhere on this site is for the United Kingdom (UK) market only.