If your property suffers serious damage it can be incredibly worrying, but in the face of Covid-19, it’s likely to feel even more stressful. Concerns about lockdown restrictions and safety are causing many property owners to query how the insurance and repairs process could be affected.
Here, we respond to the main questions being raised, including advice on achieving a successful insurance claim and arranging specialist repairs during the crisis.
Will Covid-19 affect the way my insurance claim is handled?
If your home is seriously damaged from a fire or flood for example, an insurer will usually hire a loss adjuster to validate your claim. This will involve them visiting your property to gather evidence and ask questions.
Because of the current restrictions, many insurers are offering virtual visits which means your property will be assessed using a video link and images. This technology can prove effective but there are pitfalls to consider.
Fair settlements rely on very thorough inspections. If property damage is viewed remotely, there is a risk that some elements may be missed. This could lead to repair work not being scoped correctly and lower settlement offers.
To minimise these risks, consider seeking specialist advice before you accept your insurer’s assessment. By appointing Sarrani, we can liaise and negotiate with your insurer on your behalf to ensure your claim is progressed as quickly as possible and you receive all you’re entitled to under your insurance policy.
Are contractors still permitted to carry out repairs?
Government guidance states that…’work carried out in people’s homes, for example by tradespeople carrying out repairs and maintenance, can continue, provided that the tradesperson is well and has no symptoms.’
This covers all work - not just essential or emergency work. However, it is crucial that tradespeople follow Public Health England guidelines including maintaining a two-metre distance from residents.
Can emergency repair work still be carried out if I’m self isolating?
If your home suffers serious damage that risks the safety of the household, emergency repairs can still be carried out if the tradesperson is willing to do so. In such cases, Public Health England can provide advice to tradespeople and households.
Could the cost of repair work increase during lockdown and would this be covered by my insurer?
There is a possibility that repairs could cost more at the moment. The requirement to maintain social distancing means less tradesmen can work on a project at any given time, and sourcing materials is a much lengthier process due to long waiting times and limited availability of certain items. This may result in extended timescales to complete projects and higher costs as a consequence.
However, the Financial Conduct Authority (FCA) has stated that it expects insurance firms to act fairly in accordance with their customers’ best interests and be flexible when dealing with claims during the pandemic. This includes paying appropriate costs to ensure work is carried out safely in the current environment and taking unavoidable delays into account.
My insurer has encouraged me to find my own contractor – how can I make sure they have the right skills for the job?
The pandemic has reduced the number of contractors available to carry out specialist repair work, so tread carefully before hiring a builder.
It’s really important to choose fully qualified professionals that are specifically experienced in property insurance repairs – not general construction. If the contractors don’t fully understand the work involved, this could cause further problems down the line and insurers are unlikely to pay out to correct issues caused by poor workmanship.
Appointing a property insurance repairs specialist can overcome these issues. At Sarrani, we have a network of trusted and vetted contractors across the UK who can help with any emergency and have a proven track record of high-quality work.
For further guidance on what to look for before appointing a contractor for insurance repairs, take a look at our checklist.
If my property is deemed unhabitable, can I still move to alternative accommodation when the government is advising people not to move house?
If severe damage has made your property uninhabitable – for example, it no longer has a working kitchen or bathroom - then you will be able to move to alternative accommodation.
The ABI states that ‘insurers are expected to continue to provide cover for customers as promised in the policy - including funding the cost of alternative accommodation - whilst acting in accordance with the UK Government’s advice at that time.’
If the property is habitable at present but will be rendered uninhabitable when the reinstatement works take place, the works will be considered non essential so should be postponed until lockdown restrictions have been lifted.
I own a property that is currently unoccupied because of the restrictions – will my insurance be affected?
Check with your insurer or broker what terms apply to your building insurance for unoccupied premises in the current circumstances. Many insurers have relaxed their policy requirements for unoccupied homes and business premises, extending the amount of time they can be empty before they are deemed unoccupied or vacant. Some insurers have cancelled their unoccupied clauses entirely during lockdown.
Also check what risks will not be covered if your property is deemed unoccupied or uninhabited for insurance purposes. For example, escape of water or oil will often not be covered when a property is unoccupied. And note that some insurers may have different levels of cover for vacant properties versus unoccupied.
If your property was unoccupied prior to the Covid-19 outbreak, your insurer will require you to safely carry out the same security measures as before.
Will my building insurance cover the cost of deep cleaning my property because it is contaminated by Covid-19?
Unfortunately, a deep clean of this nature would not be covered by most standard building insurance policies. However, if your business premises is affected and you have business interruption insurance or environmental insurance then you may be covered so it is worth checking with your broker or insurers. If you need to decontaminate your property, we have a team of experts who can assist.
For further information on property insurance repairs during the Covid-19 crisis, please contact us on 020 3006 3126 or email our experts at info@sarrani.com.