Covid 19 - Client Case Study

Situation

One of our Premier Plus policyholders contacted us with a concern about the cover level in place for their renovation. 

‘Our property structure is now complete and should be weatherproof, watertight and secure by now, but we have been unable to fit the windows and doors.

All electrics and plumbing works are complete in the property and the roof is fitted however the window company has shut down due to the Covid- 19 virus and postponed the installation of the doors and windows.  We do not know when they will be back.

Would we be covered if someone went in and ripped the electrics and plumbing out?’

What we considered

There are few considerations in this scenario:

The Premier Plus policy covers the property and all fixtures and fittings on an All Risks basis so this would be covered.  However, there are certain policy duties the policyholder must adhere to.

• The client has a duty of care to prevent loss.   As the windows and doors cannot be fitted, they should take reasonable steps to prevent loss.  In this case, we recommended that they securely board the site in order to prevent unauthorised access to the building until the window fitters could return.
• Within the policy there is an exclusion for unfixed non-ferrous metals.
• Did the works stop as a result of the Covid-19 pandemic and no other works are proceeding?

Our solution

Endorsement CV19+

We agreed that, where building works have stopped directly as a result of the Covid-19 virus, full cover will be maintained on this policy for up to a period of 90 days effective from the date of first notification.

All other policy terms and conditions remain unaltered and the policyholder must comply with the ‘Existing Structure – requirements for unattended premises’, unless Government legislation prevents them from doing so.

This will effectively ensure that cover can be maintained during the lockdown period for up to 90 days or to the expiry date of the policy, whichever is soonest.

At the expiry date, policy extensions will be offered as usual and, if accepted, the balance of the 90 days on the CV19+ endorsement will carry forward to the new policy period.