insurance cover

INSURING YOUR CUSTOMER UNITS

Posted on February 12, 2025

Leisuredays are specialists in working with UK parks to insure customer holiday caravans and lodges...

Holiday Parks refer their customers to Leisuredays and then the insurance company’s team of over 60 advisers are on hand seven days a week to do the rest in terms of providing quotes, taking payment for cover, issuing documentation and managing renewals. The parks receive a valuable income stream on the policies sold and renewed.

Gareth Walker, Head of Leisuredays Development, says: “Parks love the ease at which they can refer customers to us, and trust our expert team to give great service to their owners. In the past many parks have taken on administration of insurance for customers themselves, but with growing regulatory requirements and a desire for park staff to focus on core park activities such as sales and day-to-day operations, many parks have made the switch to directing customers to a specialist.

Leisuredays are obviously very well set up for this with our contact centre and online quote and buy facility. We’re on hand to get park customers the cover they need quickly seven days a week. Gareth added, “We’re known for getting good take up rates amongst each park’s customer base with timely marketing, highly-rated service, great cover benefits and competitive pricing.

Despite insurance operations moving out of house on these parks, we’re still very good at keeping parks informed of who’s on cover and any ongoing claims.” Commenting on changes in risks seen on parks Gareth explained: “There’s not a great deal of change in common claim types made by caravan and lodge owners.

REVIEWING OUTFLOW points for flood water is essential.

The most common claims in 2024 included storm, flood, accidental damage to the inside and outside of units and then escape of water from toilets, showers, sinks and boilers - often leading to floor damage.” Gareth adds: “In terms of changes, it’s fair to say we’re noticing more frequent flooding. One in 50-year flooding events in some areas are becoming one in 10-year events and so on.

In terms of actual claims value the costliest, perhaps predictably, are for flooding and fire with these events often creating severe damage leading to major repairs or write offs.” Leisuredays have not taken the increase in flooding events lightly. In fact, they’ve been proactive in working with numerous parks to implement flood defences and flood mitigation strategies to lower the future risk of flooding.

These initiatives have also enabled the continued availability of insurance including vital flood cover at sensible premiums for the caravan owners on these parks. Testament to this in 2024 the company twice made finals in major insurance awards for its work with parks at risk of flooding.

Gareth expands on this: “Alongside our underwriter RSA, and an independent flood consultant, we have worked with parks on some major flood strategies resulting in the installation of bunds, piling, and state of the art sea walls to protect the park’s business and its customers from future weather events.” Talking about vital benefits provided by the Leisuredays insurance cover, Gareth explained: “In line with most common claims our policy covers caravan and lodge owners for flood, storm, fire, theft and accidental damage.

LEISUREDAYS INSURANCE have seen an increase in caravan owner flood claims on parks

Most owners get our new for old cover which means in the event a caravan or lodge is damaged beyond economic repair, we’ll buy them a brand new model as a replacement, subject to them having the correct sum insured. Obviously, in the event of a caravan needing replacement it’s costly to take the damaged one off the pitch and get rid of the debris, so our policy provides £10,000 of cover for that, and for re-siting and reconnection to services for the new replacement unit”.

Gareth went on to say: “What parks often find useful is our emergency repairs cover on customer policies. It allows them to make temporary repairs following serious damage to caravans and lodges, to make them water tight or secure and to prevent more damage or loss, in the knowledge we’ll pay them for the work.

Customers also love the benefit of ground rent cover paying them up to £2,500 when their caravan can’t be used as a result of an insured event.” If we were going to suggest any quick ways a park can reduce the extent of damage from flooding, we’d always recommend they look at existing park drainage – making sure floodwaters can escape the park quickly.

Leisuredays
01422 396 693
www.leisuredays.co.uk/smartway

LEISUREDAYS HAVE worked with parks on numerous flood defences such as this living wall on a Scottish park.

THIRD PARTY SAVVY WORKING

Posted on October 25, 2023

THIRD PARTY SAVVY WORKING

CHECK ALL ON-SITE contractors are insured.

For many parks bringing third parties and contractors on site to complete works is part of everyday life. Whether it’s for large developments, upgrades or just simple repairs and maintenance, having other businesses onsite is a regular occurrence.

As we head into the period when many parks undertake important maintenance and development work, specialist holiday park insurance providers, Compass, have put together some helpful tips to consider when it comes to insurance. Contractors come in all shapes and sizes, from large commercial businesses to bona fide contractors.

Regardless of the type of their business, the length of contract and the work they are undertaking, when coming onto your park requires them to have their own insurance cover. The only exception is if you’re employing a labour-only sub-contractor as they are automatically classed as your employee by most commercial policies and would therefore be covered on your own policy.

From an insurance perspective you want to check that:
• The contractor does have insurance in place
• That insurance is specific to the work they are going to undertake
• Their insurance doesn’t expose you and your policy to any claims

Remember, a contractor working on your park without the right level of insurance could expose you, the most obvious way is in your liability to the public. The limit of indemnity (LOI) on Public Liability needs to be the same as the limit you have on your Park business policy, referred to as being ‘back to back’.

If it isn’t then in the event of a liability incident, you could find yourself picking up the gap in an award to a claimant. Compass has produced a handy check list for you to use which you can find on www.compassparks.co.uk

NOT A PENNY MORE…

Posted on February 15, 2023

NOT A PENNY MORE

Balance your insurance policy sums...

THE GAP BETWEEN PROPERTY rebuild costs and the amount buildings are currently insured for in the UK is widening.

It’s unlikely that reviewing the sums-insured on your insurance policy was top of the list for new year’s resolutions, but perhaps it should be!

It is likely that if you haven’t reviewed your sums insured for a while, you may find that you are under insured, in fact data shows that up to 83% of properties are underinsured and on average they’re only insured for 66% of what they should be!

A greater proportion of properties are now underinsured and the gap between property rebuild costs and the amount buildings are currently insured for in the UK is widening.

INSURANCE GAP
Latest research shows 83% of properties were found to be underinsured, up from 80% in 2021. On average, these buildings were insured for just 66% of what they should have been. The percentage last year was 68%, which shows how the buildings under-insurance gap is widening in the UK. This gap is biggest among buildings insured for up to £500,000, which are on average only covered for 51% of their rebuild cost.

Buildings insured for more than £2 million are closer to what they should be, but still only covered on average for 70% of reliable rebuild cost. But what is the effect of underinsurance? Well in the unfortunate event where you have an incident on your park where you need to make a claim, if you are found to be underinsured then your claim settlement may be reduced proportionally in line with the level of underinsurance.

This can happen if the reinstatement cost of the property is not adequately valued at the time the insurance policy is taken out, or if the reinstatement cost of the property increases over time and the policy is not updated to reflect this change. Common increases can include refurbishment of premises, additional buildings and increasing cost of materials to reinstate buildings.

Insurance policies are often index-linked which means the insurer will increase sums insured at renewal by a set percentage to take into account inflationary pressures, however if the initial sum insured is incorrect then all this does is prevent an underinsurance issue from getting worse.

LATEST RESEARCH shows 83% of properties were found to be underinsured.

RE-INSTATEMENT SUMS
The other point to bear in mind is that your insurance policy will contain a ‘buildings definition’ and any reinstatement building sum insured needs to take into account that definition. A standard building definition will take into account roads and paths and underground infrastructure and if this isn’t reflected in your building sum insured or catered for separately, as it is under the Park Protect Insurance policy, then you may find that you are underinsured in the event of an insured loss.

The onus is on the policyholder to ensure that these sums are correct, so how can you avoid this potentially costly issue? A professional valuation can help ensure that your holiday park is adequately insured. It is important to have an accurate valuation of your property and assets in order to determine the appropriate amount of insurance cover. The value of your property and assets may change over time, so it is important to review your insurance cover regularly to ensure that it remains adequate. Conversely, research shows overinsurance can also be an issue.

Research shows that 13% of buildings assessed were covered for too much this year, on average by 132%. So having a professional valuation could actually save you money. A specialist insurance broker can help you assess your insurance needs and find a policy that meets your specific requirements. They can also help you understand the terms and conditions of your policy and ensure that you are adequately covered. Park Protect provides tailor-made insurance for the specific needs of your business. Get in touch to find out more.

pib Group
Tel. 01422 358 525
www.pib-insurance.com/parkprotect

Safety First For Holiday Hot Tubs

Posted on April 8, 2015
lorica

Peter Heffer, director of holiday parks at Lorica Insurance warns hot tub owners to ensure they have the right insurance cover.

Safety First For Holiday Hot Tubs

The increasing popularity and demand for holiday hot tubs can be a double-edged sword for holiday park operators.

Installing a hot tub is a substantial investment that can add real value to a holiday property. Even so, unexpected events can happen which can result in serious damage to the tub or to the bathers. For this reason park owners should be aware of the risks and ensure that they’re fully protected by their insurance policy.

“Firstly, there is the risk of damage to the hot tub itself and an insurer needs to appreciate that they are providing cover for this aspect,” explains Peter Heffer, director of holiday parks at Lorica Insurance.

"For example, is the tub an intrinsic part of the holiday or residential home structure or is it a standalone unit, which is arguably contents.”

Peter adds: “Other important questions to think about include does the sum insured cater for the hot tub? Does the insurer provide full policy cover or are certain losses, such as escape of water and accidental damage, excluded? Will cover operate if the home is sub-let?”

There is also the question of cover for injury to third parties. When it comes to hot tubs there can be increased risk of disease if the tub is not properly cared for and maintained to a high standard. With this in mind, Peter stresses the importance of ensuring that you are covered for legal liability to members of the public should they contract an illness or suffer an injury whilst using the hot tub.

Peter adds: “Lastly, you should consider if your insurance policy involves any special conditions that require you to conform to manufacturers’ safety and maintenance requirements. Whether the hot tub was professionally installed or not can also affect the policy.”

Lorica strongly recommend that you check your individual requirements and cover position with your insurance advisor. Talk to the Lorica team today to be sure you are prepared and fully covered for all eventualities.

Lorica Insurance Brokers
Tel. +44 (0)7827 895671
www.loricainsurance.com