Buildings & Contents Insurance for a Mixed-Use Property

• Client: International property owner
• Property: Semi-commercial unit comprising two restaurants and several self-contained flats
• Ownership: Single freehold title
• Requirement: Specialist property insurance covering buildings, contents, landlord protections and loss of rent

Enness was approached by a client with connections across the UK, Northern Europe and the Middle East who was seeking appropriate insurance for a semi-commercial property. The building comprised two restaurant premises alongside several self-contained flats, all held under a single freehold title.

The mixed-use nature of the property created a challenge when arranging suitable insurance. The client also occupied the commercial premises, meaning a standard property insurance policy was not sufficient for the circumstances. A specialist policy was required to ensure the different elements of the property and the associated risks were adequately covered.

Enness identified a suitable insurance policy that provided comprehensive cover across the building and its contents, while also incorporating the necessary landlord protections. This ensured that the restaurants, residential accommodation and associated contents could all be covered under an appropriate structure.

Only a few weeks after the policy was put in place, the client was required to make a substantial claim following an incident at the property. Given the circumstances, managing the claim added another layer of complexity at an already challenging time.

Enness was able to assist the client throughout the claims process through a dedicated contact who managed the claim on their behalf. This helped reduce the administrative burden for the client and provided support while the necessary repairs and refurbishment works were being arranged.

The policy responded to the claim and covered the costs associated with the repairs and refurbishment required to return the property to full working order. It also provided cover for 50% of the loss of rent, helping to mitigate the financial impact while the property was being restored.

Following the completion of the necessary works, the property was returned to full operation and the residential units were once again rented out. The outcome demonstrated the importance of arranging an insurance policy that accurately reflects the nature and use of a complex mixed-use property, rather than relying on standard cover that may not adequately address the risks involved.

This case also highlights the value of having appropriate support when a claim arises. For owners of high-value or complex property assets, ensuring that the insurance structure accounts for the building, contents, landlord liabilities and potential loss of rental income can be an important part of protecting the wider investment.

If you own a mixed-use or high-value property and require assistance understanding your insurance requirements, speak to a mortgage specialist to discuss your circumstances.

Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal, tax or insurance advice. Insurance cover, exclusions, claims and policy terms will vary depending on the insurer, property and individual circumstances. Independent professional advice should be obtained where appropriate.