Real Estate Property
Real estate assets are valued on the balance sheet, but they are rebuilt at construction cost, and the indemnity is decided between one figure and the other. We know what an underwriter requires to insure a building at reinstatement value and how insurers read the use, the tenant and the age of each asset. With that knowledge we design for your portfolio a programme that accompanies the property throughout its useful life.
The covers that support a company in this sector
Each one is designed based on the company's real exposure. None are contracted the same in two companies in the same sector.
- Home insuranceBuilding, contents and liability
- Personal jewellery insuranceCovered outside the home too
- Fine art insuranceAgreed values in the policy
- Recreational vessel insuranceHull, liability and assistance
- Community insuranceCommon areas and water damage
- Construction and all-risk insuranceWorks, testing and maintenance
Lo que nos preguntan en real estate property
What building sum insured should be declared for a rented property?
The cost of reconstructing it today, calculated on built square metres, qualities and fixed installations, leaving the land value out of the figure. Declaring the book value, or dragging a valuation that has not been reviewed for years, leaves the sum insured below that cost and activates the proportional rule of article 30, which reduces any compensation in the same proportion, including partial ones. Declaring the purchase price produces the opposite effect where the land is significant: a premium is paid for a sum that will never be compensated, because article 26 limits the benefit to the damage caused and article 31 allows the reduction of the sum and the premium to be demanded.
What is the owner liable for when the property is rented?
For the condition of the building, its installations and its common elements to third parties, because the lease transfers the use of the property and leaves the ownership where it was. The tenant's policy covers their contents and their own liability, so it is advisable to request a copy when signing the contract, check limits and covers, and repeat the check at each renewal.
Is it necessary to notify a tenant's change of activity?
Yes. The activity carried out in the property is part of the declared risk, and replacing offices with a workshop or a warehouse of flammable goods modifies the basis on which the policy was accepted. Articles 11 and 12 of the Insurance Contract Law regulate this communication and the consequences of omitting it.
Our publications related to the Real Estate Property sector
Home insurance: how to calculate the contents without falling short
The building is easily estimated. The contents are almost always calculated by eye, and that's where domestic underinsurance appears.
6 min readTechnical note
All risks construction: the four stages where cover is decided
The work is not a homogeneous period. Testing, reception, maintenance, and ten-year guarantee respond to different logics and to different policies.
7 min read