Whether you’re renovating, refurbishing or building a new home for a client, structural defects warranties from FMB Insurance are designed to help protect your clients when they invest large sums of money.
But in recent months the insurance market, which works in ‘hard’ and ‘soft’ cycles, has been changing. A hard market means that available insurance is restricted and prices are higher, whereas in a soft market there is greater availability and lower prices.
The UK insurance market started to harden in 2019, but the situation was then exacerbated by the COVID-19 pandemic and other factors such as increased claims for business interruption and liability.
What does the changing insurance market mean for you?
In a hard insurance market, all insurance companies and their underwriters become more selective about risk. To better understand that risk, they may ask more questions and request additional information.
For example, one of the most noticeable changes is a switch to asking more about the financial stability of the firm undertaking the work. Just like other insurance companies, FMB Insurance is used to providing all the technical information associated with ‘how’ a property is being built, but it must now also provide more information about ‘who’ is building it.
Managing market changes
Here’s how FMB Insurance is managing the market changes:
- If you are applying for insurance to cover any domestic home improvement works, for example, an extension or loft conversion, then FMB Insurance may require a personal assets and liabilities statement. This is to confirm that you have enough funds to cover the cost of works you are carrying out.
- FMB Insurance may also ask you to show how the job is being funded such as through confirmation from the lender or firm providing the finance.
- If your company has worked with FMB Insurance previously they can use information they already have on file but might need to ask you additional questions.
- If you’re an FMB member, FMB Insurance can use your length of membership to confirm your experience.
These changes require more information from you as a customer, but also offer extra peace of mind. They include investigation into the extent of funds to cover the cost of the plans, as well as the ability and experience of the builder undertaking the work – saving you money in the long run.
Renewing your construction insurance
If your insurance renewal date is approaching, make sure you review your policy first to ensure it is still relevant to your business needs. If you’re looking to compare or change policies, don’t forget to check the fine print and exclusions as cheaper alternatives may not cover you for everything you would expect.
FMB Insurance can provide comprehensive quotes and guidance on the right level of cover for your construction business. The team is staffed by construction insurance specialists with an in-depth knowledge of the industry. FMB Insurance now also works with a broader panel of insurers, which means there are more opportunities to find the best insurer for your individual requirements.
Contact FMB Insurance and get a quote today. Call 01353 652 760 or visit www.fmbinsurance.co.uk