BROKER SALES SUPPORT – PROJECTS BEING UNDERTAKEN BY MID NET WORTH INDIVIDUALS

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BROKER SALES SUPPORT MATERIAL – MID NET WORTH

Renovation Underwriting Ltd offer an ‘All Risks’ contract works package for mid and high net worth renovators. Below are a series of guidance notes in respect of mid net worth (mnw) enquiries.

What is the MNW Product?

This is a packaged version of our standard product. It is a cost-effective way for renovators undertaking smaller projects to access our ‘all risks’ peace of mind insurance solution. The policy grants ‘up to’ 12 months of cover for projects where the structure sum insured is £450,000 or less and the works sum insured is £250,000 or less. The cost of this product is £950 including tax.

The Fact Find:

Our fact find is on-line form that operates as a statement of fact. It is tailored to collect the exact information we need to underwrite both MNW & HNW risks. A paper version, which includes some guidance notes, is available to enable you to collect the information from your customer, but you should use the on-line form on our portal to submit the information to us.

Our On-Line Portal Quotation System:

You are able to submit mid net worth enquiries via our on-line portal. Please contact Matthew Dover ( matthew.dover@renovationunderwriting.com ) if you require access. The portal will ask you for the same information as we request on our manual fact-find and, once we’ve approved your quotation request, you’ll receive a copy of this for your own records.

It is our intention to trade exclusively on our on-line portal. This ensures instant document production at both quote and bind stage. The MNW product is not available off of the portal.

Underwriting:

Whilst a good deal of the high net worth enquiries we receive require heavy underwriting, and referral to the insurer, the vast majority of mid net worth enquiries can be underwritten speedily, and in-house.

It would be unusual for us to apply non-standard endorsements to such policies, but, on occasion, the risk information will necessitate the addition of endorsements. For example, a poor claim experience might prompt us to apply a higher excess, or exclude a particular peril. It would be highly unusual for such a risk to attract a risk management survey.

We sense check information which is provided to us, but we would urge you to review the information provided by your client. We are frequently presented with submissions which don’t even have sums insured on them, or where other crucial information (such as physical

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security and project set-up) is missing. To ensure the smoothest and quickest quotation process, it is definitely worth making sure your presentation to us is as good as it can be.

Pricing:

It is not unusual for proposers to be surprised at the cost of our insurance package, but this is because they are generally relating it to the cost of their standard property insurance. You should seek to make your client aware in the early stages of the quotation process that this type of insurance is significantly more expensive than standard property insurance. The reasons are twofold:

• We are not just covering the structure. We are also covering the works themselvesand any project related liabilities

• The risks associated with renovation projects are significantly higher than thoseassociated with standard building risks

In the past, we have struggled to compete on smaller projects occurring at standard properties. We have addressed this by developing a mid net worth packaged version of our full product. For a fixed premium of £950 including tax, we are now able to offer full cover for up to 12 months where the following criteria are met:

• Existing structure sum insured - £450,000 or less• Works sum insured - £250,000 or less• Structure unlisted• Standard construction• Project not being undertaken for commercial purposes• Structure is a domestic dwelling, or being converted to a domestic dwelling• If there is a Party Wall exposure, this exposure is light, as opposed to moderate or

heavy• Claim experience is satisfactory

Please note that we cannot offer this product for projects involving basement digs, or other works which present a significant Party Wall exposure, even if all of the other criteria have been met.

FAQs:

We have produced a document which attempts to answer many of the questions we routinely receive, for example:

• Can we insure projects already underway?• What sort of liability insurance does our client need?• What is a JCT contract?• What is party wall insurance?

VERSION: MAY 2018 v1.0