Five short paragraphs that could save financial embarrassment
Let’s be technical for a moment, and potentially guarantee your income in the event of serious damage to your property.
Your self catering insurance includes loss of income cover. If damage occurs to your property and you have to cancel bookings / not take bookings for the foreseeable future you need to make an insurance claim for your lost income.
You will see that the loss of income has an ‘indemnity period’. This is the maximum period of time for which the insurers will pay following damage. An indemnity period of less than 24 months is foolhardy.
Have you ever considered how long it would take to clear the site of your damaged property, and be back in a position when your trading levels are where they were at the time of the disaster? Most ‘normal’ properties may find a 24 month period is adequate but what if your property is geographically remote, in an heavily congested area (think road closure orders and restricted builders working times) and / or Listed?
Indemnity periods are usually available for 24, 36, 48 or even 60 months. And your sum insured is not twice for 24 months, three times for 36 and so on. Take advice from your Insurance Broker.
David J Morris ACII
Chartered Insurance Broker
J L Morris (Insurance Brokers) Limited