Although the majority of us buy insurance for a clear purpose, nobody really wants to make a claim. If you do need to claim the last thing you need is to find the claims payment is reduced or worse still not paid. To address this Boswell Aftermarket’s insurance partner AXA has highlighted common reasons for claims not being paid.
Alarms for business premises
Alarms for business premises differ significantly in their requirements to those for homes. For business security an intruder alarm plays an important role in crime prevention deterring attempted theft or malicious damage. The alarm can also reduce the size of the loss by being able to react quickly by activating a police response to a theft in progress. Most business premises insurance policies insist that a properly designed, installed, maintained (and if needed monitored) alarm is fitted. For theft cover to be in force, all of the policy alarm conditions must have been complied with.
Common alarm condition breaches by the policyholder resulting in no theft/attempted theft/malicious damage cover include:
- Not notifying the insurer within 7 days if police response has been reduced or withdrawn (e.g. excessive false alarm volumes).
- Not setting the alarm system when the business premises are unattended.
- Unable to set the alarm (e.g. door contacts or detection equipment removed or damaged either accidental or maliciously) and not acting on faults apparent at the time of the alarm being set and then leaving the premises unattended.
- Only part setting the alarm system (could mean that remote signalling is disabled or part of the building is unprotected).
- Not keeping security codes confidential or removing codes or keys from the premises when unattended.
- Lapse of the maintenance contract or wrong maintenance contract (e.g. no preventative maintenance).
- Changes to the ‘as fitted document’ such as subsequent changes to the signalling path or alarm coverage which has not been approved by the insurer prior to the change.
- Not notifying changes to appointed keyholders to the police, alarm receiving centre or alarm company.
Please note the above are examples only and you must refer to your own policy for your insurer’s specific requirements.
Keys left in the vehicle
All drivers will recognise it is not a good idea to leave their keys in the vehicle or keep it unlocked when unattended. Unfortunately not everyone appreciates that an insurance company will not pay a theft claim when keys have been left in or on the vehicle. They will apply the standard ‘keys in vehicle’ or ‘vehicle left unattended’ theft exclusions. Below we set out how such a claim would be considered.
- Did the policyholder recognise the risk but did nothing to avoid it?
- How the theft/attempted theft took place?
- Was the engine running?
- Likelihood that any keys left in the vehicle was used to start the engine.
- If so, were the keys left in or on the vehicle intentionally or inadvertently?
- Where exactly was the vehicle? Where was the person in charge of the vehicle at the time of the theft?
- Other form of entry/ignition device in operation that would prevent the vehicle being driven away
Storm and roofs
The most common reasons for property claims to be declined are following storms. In order for your claim for storm damage to be accepted you must ensure that the property is in a good state of repair prior to the storm.
When is a storm a storm?
- Insurers define a storm as a period of violent weather with:
- Wind speeds with gusts of at least 48 knots (55mph).
- Torrential rainfall at a rate of at least 25mm per hour.
- Snow to a depth of at least one foot (30 cms) in 24 hours.
- Hail of such intensity that it causes damage to hard surfaces or breaks glass.
There are four main issues to consider when investigating a claim for storm damage:
- On the balance of the evidence does the insurer agree that storm conditions occurred on or around the date the damage is said to have happened?
- Is the damage claimed for consistent with what is generally seen as storm damage?
- Were storm conditions the main cause of the damage? It could be that other factors were involved – and the damage might have occurred without the storm.
- The maintenance/condition of the property, in particular roof tiles and flat roofs.
It is important to remember that the storm needs to be not only the occasion of the damage but also the cause of it.
If you’d like to discuss any of the points raised in this article please contact Nick Chambers, Boswell Aftermarket Chief Executive on 01603 727648 or nick.chambers@boswell-insurance.co.uk