Gap Insurance – Are you covered?

September is one of the busiest months of the year for the UK motor industry with the launch of the new registration plate

Jackson Lee* has advised that in September 2016, according to the Society of Motor Manufacturers and Traders, 469,696 new cars were registered.  Similar numbers are expected this year with around 80% of new cars being purchased on finance.

What is GAP insurance and why do I need it??

If your vehicle is stolen or written off due to an accident it is likely that your motor insurer will only pay the current market value for your vehicle.  This amount could be less than what you originally paid for your vehicle or even less than what you still owe on finance.  With 70% of consumers leasing and financing vehicles this is a financial risk many consumers face.  Universal GAP insurance is designed to protect you against this financial shortfall.

My motor insurance policy offers a new replacement vehicle whilst in its first year of registration. You may not be eligible for a new replacement vehicle if:

  • Your vehicle is pre-registered, i.e. new to you but has already been registered to the dealer to reduce VAT
  • Your vehicle has exceeded a certain mileage
  • You are not the owner/registered keeper of the vehicle. Consider lease agreements.
  • If current production is no longer available. Often insurers will then revert to the market value which will be significantly lower than their obligation under replacement vehicle cover.

Why should I buy GAP cover from a broker?

  • You are charged 12% insurance premium tax (IPT) opposed to 20% through a motor dealer
  • No need to cancel your GAP policy if you change your vehicle and you can change your vehicle as many times as you wish
  • In the event of a claim, Jackson Lee will assist you with verifying the value of your motor insurers claim settlement
  • No more paying for cover you don’t use. The product is annually renewable should you choose, eradicating the need to pay a lump sum upfront for a 3 year policy and runs in line with your current motor insurance
  • You are covered no matter how and when the vehicle is purchased. Motor dealers will only sell GAP at the point of sale and customers generally cannot return several months later to purchase GAP.
  • You are covered for the £250 excess in the event of a fault claim
  • Competitive pricing across all car makes, models and derivatives – available for new or used vehicles.
  • Just 3 policy exclusions and only 2 ½ pages of policy wording

You can now purchase GAP insurance for your vehicles from us at Bruce Stevenson.  Please contact your account handler or call us on 0131 553 2293 | email [email protected].

Underwritten by Jackson Lee Underwriting who have been accredited as the BIBA Approved Scheme provider for GAP since 2012.

 

Home Security – Protect yourself

At Bruce Stevenson Private Clients we seek to advise clients on the best way to protect their home.

Evident physical security measures are a must, but perhaps less obvious is being aware of what you are posting on social media.  Photographs posted on Facebook, Instagram or Twitter of you on holiday can be hacked or viewed by undesirable prying eyes, alerting them to the fact that your home is unoccupied.

Andrew Davies, senior risk surveyor at AXA Art Insurance Limited always says treat security like an onion – starting with the outer perimeter layer (your boundary) then the layer around the house (locks and alarms) with further layers (safes, panic buttons, valuables such as cash distributed evenly around the house) until only finally do you reach the core. The more layers an intruder has to overcome, the harder it will be to break in, which will take longer and therefore they are less likely to try.

Layers of security:

Perimeter /Boundary of your property

  • Make it hard to penetrate, even hedges can be thick, prickly and thorny.
  • CCTV
  • Gated entry with video phone and security lighting

1st Inner layer – the garden

  • Don’t leave things like ladders lying around, or bins that can be used to climb up to access windows.
  • Keep outbuildings locked so thieves cannot access tools and implements that could be used for breaking into your home.

 2nd inner layer – exterior of the house

  • Visible intruder alarm box on the exterior of the house.
  • CCTV and security lighting
  • Double glazed windows, window locks, minimum 5 lever mortice deadlocks on accessible doors

3rd inner layer – in the house

  • If you are planning on being away, make the house look occupied. Use lights on a timer, alert neighbours, friends and family and arrange for them to check the house from time to time, clear post away.
  • Use a housesitter.
  • Make sure alarms are set.
  • Use a door viewer and a door chain.
  • Use a safe for your valuables ensuring it is adequate for the values contained within it and try not to keep large sums of money in the house – if you must, make sure it is well dispersed around, but check your money limit on your insurance policy.
  • You can use a UV marker pen to place an invisible imprint of your postcode and house name or number of your possessions.

Remember:

  • 36% of all burglaries are crimes of opportunity, with burglars letting themselves in through unlocked doors or windows (Association of British Insurers)
  • You are 10 times more likely to be burgled if you don’t have basic security (Association of British Insurers)

If you would like some help with the security protections of your home we can help you.  Please contact your account handler or call us on 0131 553 2293 2293 | email [email protected].

Burglary – what you can do to protect yourself and your home

Earlier this year, industry-wide figures revealed that alongside its title of being the Scottish nation’s capital city and seat of power, Edinburgh also is the burglary capital of Scotland.  Homes in Balerno, Currie and Wester Hailes have seen the most break-ins with the EH4 area covering Dean Village, Comely Bank and the A90 to Barnton and Cramond following.

Michael Young, underwriter of high net worth homes in Scotland and expert in protecting your home from theft commented “At Hiscox, we have seen a spate of burglaries in Edinburgh and the Lothians. There has been no real pattern to this and the criminals do not care how they carry this out. Clients have had large amounts of valuables stolen in what seem like targeted attacks and we have seen gardening equipment and bicycles stolen from garden sheds. The best way of protecting yourself is to ensure you do all the things which are in your control to decrease the chance of you being the next victim.”

At Bruce Stevenson Private Clients we have seen thefts recently fall into two categories; thefts from outbuildings and thefts from homes whilst clients are away on holiday.  For both, evident physical security measures are a must, but perhaps less obvious is being aware of what you are posting on social media.  Photographs posted on Facebook, Instagram or Twitter of you on holiday can be hacked or viewed by undesirable prying eyes, alerting them to the fact that your home is unoccupied.

Andrew Davies, senior risk surveyor at AXA Art Insurance Limited always says treat security like an onion – starting with the outer perimeter layer (your boundary) then the layer around the house (locks and alarms) with further layers (safes, panic buttons, valuables such as cash distributed evenly around the house) until only finally do you reach the core. The more layers an intruder has to overcome, the harder it will be to break in, which will take longer and therefore they are less likely to try. For further information on security layers please read our top tips.

Many break-ins are carried by an opportunist.  The thief hasn’t had to actually break in because a door or window has been left open or unlocked.  Our clients have had their cars stolen because they have left car keys on a table near the front door.  The thief has used a fishing rod or other long device through the letter box, lifted the keys and then made away with the car without any physical evidence of entry to the property.

As your broker, we ensure that your sums insured accurately reflect what you actually have and making sure your valuations are up to date.  Insurance is a purchase that we make but hope not to use.  Imagine for a moment that you have suffered a burglary.  It is often a good way to focus your mind and think about how you evidence to the insurers or loss adjustors just what has been stolen.

Start by imagining you have to make a claim.  It is hard to remember what was in a room, or outbuilding, which valuables were taken, their values and descriptions.   Photograph your rooms, have professional up to date valuations of your collectables, jewellery and watches and ensure a copy is kept ‘off-site’ or digitally recorded somewhere that is accessible away from home.  Insurance is there to put you back in the same financial position immediately prior to the loss.  Having a valuation from the 1980’s for your jewellery and watch collection that has been stolen is going to fall woefully short of what the market value to replace those items today is.

If you would like some help with the security protections of your home we can help you.  Please contact your account handler or call us on 0131 553 2293 2293 | email [email protected].

The Edinburgh Care Forum

We are delighted to announce that Alexandra Richards from our Private Client team has been accepted on to the Edinburgh Care Forum.  The goal of the Forum is to provide a high level of advice and support to those in need of specialist care. At Bruce Stevenson we know that insurance can be a complex issue and it can be a burden when ill-health or family issues bring a change in circumstances and priorities.

As members of the Edinburgh Care Forum, we can help to shoulder the burden of insurance  at these times (ensuring that a home is insured whilst unoccupied for instance), and we’ll work with other ECF members with complementary skills, including trusted lawyers, property managers, financial planners and other advisers, to be part of the crucial ‘circle of care’.

If you or a family member feel you might need some help and advice please get in touch with Alexandra on 07464 545648 | 0131 553 2293 | [email protected] or take a look at www.edinburghcareforum.com.

Undertaking home renovations? Make sure you let us know.

Bruce Stevenson Insurance Brokers are experts at arranging insurance for your home and building works. We have a specialist knowledge in providing insurance solutions to homeowners who are undertaking high value renovation or extension works. Clients’ homes are often their most valuable asset with rebuild values in excess of £1m.  Renovation work can be an exciting but sometimes stressful project. Insurance cover must be checked prior to undertaking any work;

  • Will your existing insurers cover the buildings work?
  • If they do what exclusions may apply?
  • What is the maximum value of works permitted under your existing policy?
  • What is the project timescale?

We highlight to clients why it is essential that they remain in control of the insurance arrangements for their home and not rely on a contractor’s insurance to provide cover for the contract works. Home insurers are often unable to accept the risk of insuring the home if it is undergoing works in excess of £50,000.  Some home insurers may not be willing to insure your home at all if undergoing any sort of building works. This could leave your home uninsured if for example, a fire breaks out unrelated to the building works. Our ability to advise how to effectively protect the existing structure and insure the contract works under one policy means there are no gaps in cover or grey areas. This allows a cleaner, simpler claims process should there be complications. Whether the property is listed, a home of heritage status, a country or townhouse, we work with specialist insurers flexible enough to offer competitive and comprehensive cover. As an independent broker, we are committed to providing the best possible service, advice and support. We would welcome the opportunity to review and quote for your insurance needs on a no-obligation basis.

For further information, please contact your account handler or call us on 0131 553 2293 | email [email protected].

Learner Driver Motor Insurance

Some of you may have children who are learning to drive which is one of life’s great milestones.  They will want to spend as many hours on the road as they can before the test.  Learner Driver Motor Insurance is for persons aged 17-21 who want a short-term policy to cover them while learning to drive in their own, parent’s, sibling’s, friend’s or a company car.

  • It is especially for learner drivers age 17-21
  • Only pay for the cover you need from 7 – 168 days
  • Fully comprehensive
  • Protects the earned no claims bonus and premium on the main motor policy

To qualify the individual must be a UK resident, hold a provisional driving licence and be accompanied by a full licence holder who is over 25.

For more information please contact your account handler or call us on 0131 553 2293 | email [email protected].

 

What is GAP insurance and do I need it?

If your vehicle is stolen or written off due to an accident it is likely that your motor insurer will only pay the current market value for your vehicle.  This amount could be less than what you originally paid for your vehicle or even less than what you still owe on finance.  With 70% of consumers leasing and financing vehicles this is a financial risk many consumers face.  Universal GAP insurance is designed to protect you against this financial shortfall.

My motor insurance policy offers a new replacement vehicle whilst in its first year of registration.

You may not be eligible for a new replacement vehicle if:

  • your vehicle is pre-registered, i.e. new to you but has already been registered to the dealer to reduce VAT
  • your vehicle has exceeded a certain mileage
  • you are not the owner/registered keeper of the vehicle. Consider lease agreements.
  • If current production is no longer available. Often insurers will then revert to the market value which will be significantly lower than their obligation under replacement vehicle cover.

Why should I buy GAP cover from a broker?

  • You are charged 10% insurance premium tax (IPT) opposed to 20% through a motor dealer
  • No need to cancel your GAP policy if you change your vehicle and you can change your vehicle as many times as you wish
  • In the event of a claim, Jackson Lee will assist you with verifying the value of your motor insurers claim settlement
  • No more paying for cover you don’t use. The product is annually renewable should you choose, eradicating the need to pay a lump sum upfront for a 3 year policy and runs in line with your current motor insurance
  • You are covered no matter how and when the vehicle is purchased. Motor dealers will only sell GAP at the point of sale and customers generally cannot return several months later to purchase GAP.
  • You are covered for the £250 excess in the event of a fault claim
  • Competitive pricing across all car makes, models and derivatives – available for new or used vehicles.
  • Just 3 policy exclusions and only 2 ½ pages of policy wording

You can now purchase GAP insurance for your vehicles from us at Bruce Stevenson.  Please contact your account handler or call us on 0131 553 2293 | email [email protected].

Underwritten by Jackson Lee Underwriting who have been accredited as the BIBA Approved Scheme provider for GAP since 2012.

10 reasons to have Boat Insurance

Perhaps we take care of your household insurance, but not your boat or yacht.  We would be delighted to offer you a quotation and even tie it in with the same renewal date as your household and other insurances in order to keep insurance renewals down to just a ‘once a year occurrence’.  Our preferred insurer is Haven Knox Johnston, part of MS Amlin Underwriting Services Limited who have provided the following 10 reasons to have boat insurance:

Boating should be fun… but can prove very expensive if you’re not properly protected – so there are plenty of very good reasons for having the right boat insurance.

  1. Many marinas and inland waterways require that you are insured before you can launch or moor.
  2. Even if your boat is of little value and you’re prepared to take the risk of its loss it can still cause serious and expensive damage to other people, other boats or property.
  3. Third party cover protects you against potential financially crippling personal injury or damage claims which can bankrupt the uninsured.
  4. Insurance can protect you against the major costs to recover even a small boat if it sinks on a mooring or in a harbour.
  5. Your motor insurance doesn’t cover damage to your boat if it’s trailered. Check that you’re covered for towing.
  6. Insurance can be tailored to ensure you get precisely the protection you need without paying for cover you don’t want. A specialist boat insurer or broker will be best placed to help you.
  7. Taking a boat on the Continent often requires compulsory insurance. Check the requirements of your destination.
  8. Boat insurance can also cover you against loss or theft of personal possessions whilst on board.
  9. If you require finance to help fund the purchase of a boat your bank will want to be satisfied that you have appropriate insurance.
  10. If you’re thinking of buying a boat you can arrange insurance well in advance to avoid any last minute hitches.

Should I have a specialist Art & Antique Dealer’s insurance policy?

The business of an art and antique dealer is, generally speaking, a little different to the average retailer.  You may own a gallery or work from home, attend fairs and exhibitions, hold stock on consignment, ship works of art either within the UK or internationally, buy from auction or arrange for works to be restored before in a saleable condition.

The art and antiques that you sell are unique and each piece has a story to tell. If something happened to them, you cannot simply buy the same stock again.  Your insurance policy should be able to react accordingly. For instance if you had a work of art stolen, that you had already sold, but not yet delivered to a client, your settlement should be the amount you have invoiced to the buyer.  Alternatively, if you have works consigned to you for sale (and so should be insured for the amount stated in the consignment note), and they were damaged by the ingress of water to the property, you would want to ensure that the works would be covered for their restoration, plus any subsequent depreciation in value.

An art and antique dealer’s policy should also be able to offer you protection against defective title.  This is cover for claims made against you from the purchase of stock for which the vendor has a defective or no title.  You would be out of pocket if you have to relinquish the work in question.

In addition to ensuring that your stock has the proper basis of settlement in the event of loss, an art and antique dealers’ policy will also provide cover if needed, for your buildings, general contents, business interruption (or loss of income), your liabilities and other commercial covers all in one policy.

But why use a broker?  Often insurers provide different, more competitive rates to brokers because they know we will have been through the client’s insurance requirements with them and discussed what their needs are and assisted them with getting their sums insured right.   A broker who understands the nature of an art and antique dealer will know the sort of insurance requirements your business needs.  People also often think that is ‘easier’ to go online, but actually the reality can be quite different especially when it comes to changing something mid-term.  A broker can also crucially really add value when it comes to making a claim and will take the strain, acting on your behalf to get the best result for you.

If you would like a free, no obligation review of your gallery’s insurances, please contact [email protected] or call 07464 545648 or complete our Art & Antique Dealer’s Fact Find and email it to [email protected].

‘Death of Artist’ Cover – do your clients need this?

Survey Manager Andrew Davies of AXA ART Insurance explains AXA ART’s commitment to not let private clients be ‘left short’ in the event of a loss.

The purpose of insurance is to settle claims. Insurance companies want to settle claims both quickly and amicably.  On this basis, we recommend that art, antiques and collectibles are insured on an ‘agreed value’ basis (usually based on a professional third party valuation for insurance purposes), so that both the client and insured know what the basis of settlement shall be prior to any loss and can plan accordingly. Art is not a homogenised product like soap powder and the art market is full of subtle complexities, where two works by the same artist can vary enormously. Each piece of work should be valued on its own merits against the current art market. This is the main reason why art values should never be automatically indexed.

It is a commonly held belief that the death of an artist triggers an increase in the value of that artist’s lifetime’s artistic output. Perhaps the logic behind this notion is that once the artist dies no more works are produced and with a finite supply and presumed increase in demand, prices shall rise.

Today insurers such as AXA ART aim to offer their clients the most comprehensive policy cover so if a loss should occur, they will not lose out. Therefore we are introducing three new extensions in cover for private collectors:

  1. Death or permanent disability of the artist during the period of insurance; providing that the client has an independent professional valuation or purchase receipt which forms the ‘agreed value’ and this is not more than three years old, we will pay up to 200% of the ‘agreed value’ if the client can prove the increase in market value of that item.
  2. We shall also reimburse all irrecoverable costs or expenses paid on works of art commissioned by the client but not completed due to the death or permanent disability of the artist, within prescribed limits.
  3. If an item has been professionally valued within the last three years and we insure the item for that amount as an ‘agreed value’ we shall pay up to an additional 25% if the market value is proven to have increased, (with a limit up to the total sum insured for the collection).

So without being too simplistic, here are some factors that might cause values to change. For virtually all artists it is their ‘key’, seminal, classic or most typical works that are generally the most desirable, produced when they are at the ‘height of their powers’. Damian Hirst’s spins, spots or skulls for example are typical of his output. Only a few highly important artists such as Picasso have perceived ‘brands’ so strong that virtually everything that they produced is now considered valuable.

Simply put, the commercial value of an artist’s work is linked solely to demand. Demand is largely controlled by dealers, auctioneers and collectors together with the media promoting and generating interest in a particular artist. This interest may be by way of exhibitions, TV programmes and books. If the artist is in demand and fashionable at the time of their death, e.g. Lucian Freud, then it is true that retrospectives and publications shall continue to fuel interest and therefore the prices for that artist’s work.  Films such as Titanic sent related memorabilia spiralling and the recent Star Wars film did the same for that franchise’s merchandise. An exceptional auction result, for whatever reason, can recalibrate an entire market. Today an artist’s brand or reputation is a fickle thing.

The market for the best pieces by selected artists continues to rise and ultimately the onus is upon every client to seek regular revaluations in order that the ‘agreed value’ insured maintains its relevance to the current market.

For more information please contact [email protected] or call 07464 545648.

If you would like a free, no obligation review of your gallery’s insurances, please contact [email protected] or call 07464 545648 or complete our Art & Antique Dealer’s Fact Find  email it to [email protected].