ABACUS Exposed April 2020

Product Exposed Unoccupied Residential Property Insurance

Broker Spotlight

Geraint Bebb Anglesey Insurance Services Ltd

Issue

April 2020

25

Introduction

A message from Richard Burgess It is not business as normal and none of us can pretend it is.

Whilst writing this introduction (24/03) the country has just gone into Lockdown and we are sailing into unchartered territory.

We thought very carefully about sending out our regular ABACUS Exposed and agreed that we should as we all try to stay positive and keep moving forward.

I cannot thank our staff here at ABACUS enough. They have been amazing and helped us to adapt to new ways of working. The majority of our team are working from home, we have a few of us still in the office so we can ensure we are able to meet all of our regulatory responsibilities and provide a range of services to our Brokers and end customers.

We would like to assure you that we are business as normal here at ABACUS - thank you for your continued support. We will update you should any of our usual service levels alter.

I would like to thank Geraint Bebb from Anglesey Insurance for being our Broker under the Spotlight – I am looking forward to seeing you in the future and enjoying the country pub you mentioned!

Finally, I wish you and your loved ones well over the weeks ahead and hope that we will all see positive times in the not-so-distant future.

Richard Burgess, Director

1

Previous Caption Competition Winners

The winning caption was from Sebastian Phelps of First2Protect:

‘Matt Lucas, a Flood Claims specialist, trying to envisage what it might be like in a flood situation’ 2nd prize goes to Stuart McIntyre of Illingworths Ins & Fin Svs:

‘Insurers prepare for the next escape of water claim!’

3rd prize goes to Steve Pike of Bryan James & Co with:

‘I know I said deep dive audits at the interview, but this is ridiculous!’

Well done to our winners and thank you to everyone who entered! We look forward to receiving your entries for this edition’s competition.

ABACUS Caption Competition We have some great prizes up for grabs in our everpopular Caption Competition. The prizes for the top three entries are:

1st £ 50 Voucher of your choice Can you come up with a funny caption for this image?

2nd £25 iTunes Voucher 3rd £10 Next Voucher

To be in with a chance, simply send your caption entry for the photograph above to robing@sabacus.co.uk

by Friday 1st May 2020 Good Luck Everyone!

2

News round up Government wants landlords to allow pets The government has called on landlords to make it easier for more tenants to share their rented homes with pets if they so choose, reported Landlord Today on the 7th of January.

Echoing the story, Property Investor Today pointed out that although some 40% of all households in the UK have a pet, only around 7% of landlords were prepared to entertain the idea.

To demonstrate its commitment to encouraging greater freedom for petowning tenants; Housing Secretary, Robert Jenrick, has announced that the government’s model tenancy agreement would be amended to become petfriendlier.

Jenrick stressed the social benefits for tenants who wanted to share their homes with pets; provided the animals are well-behaved and do not cause damage to the landlord’s property.

A number of Build to Rent developments (where there are greater facilities for tenants and, often, a resident manager) already appear to have heeded the government’s encouragement by allowing pets to be kept on the premises.

73% of tenants break landlords’ rules More than seven out of every ten tenants is in some way breaking the rules of their tenancy agreements, revealed Landlord Today on the 29th of January, citing a recent survey.

While so many tenants believe they are probably breaking the terms of their agreement with the landlord, almost three-quarters say it is because they don’t know the rules – while more than a third complain that they don’t know how to obtain a copy of the tenancy agreement.

The most commonly broken rules included: making alterations or otherwise damaging the property without the landlord’s permission (including putting up pictures and wall-hangings), smoking inside the property, disturbing the neighbours with too much noise, and keeping pets.

Although breaking the rules of the tenancy agreement like this could lead to eviction, nearly a quarter of tenants confessed they had no idea how much notice the landlord would give them – nor how much notice they needed to provide the landlord if they wanted to move out.

3

News round up VR tech introduced for new home buyers Housebuilders Keepmoat Homes claim to be the first to offer a virtual tour of one of its proposed developments before its completion through the use of the latest VR technology.

Announcing the new way of experiencing the 824-home development at NorthBridge in Scotland, Keepmoat Homes said in a press release that prospective buyers would be able to discover its green open spaces, cycle paths and tree-lined streets many months before they actually move in.

The NorthBridge development forms part of a £250 million regeneration project at Sighthill – the largest of its kind outside of London.

The top buy-to-let property hotspots for 2020 If you are looking to invest in buy-to-let property, it helps to know where in the country you are likely to realise the greatest returns.

Investment hotspots are not just defined by the rental yield you might expect, but also the appeal of the location to prospective tenants and the likely capital appreciation of the property.

For that more sophisticated assessment of buy-to-let hotspots, Property Investor Today, summarises the results published by analysts One & Only Pro. Their AI algorithm identifies the “Diamond” properties which are most likely to increase in value, allowing even the most inexperienced investors a guaranteed healthy return whatever their budget.

The survey’s top five “Diamond” property hotspots are all in the North of England. l Top of the listings is the Merseyside town of Bootle, to the north of Liverpool, where the average house price is £57,559. l Burnley, in Lancashire, claims second place and, Grimsby (Northeast Lincolnshire) and Hartlepool (County Durham) follow up in third and fourth places. l Liverpool comes in at number five (average house price £85,219).

4

UK holiday home insurance FAQs The demand for holiday and second home insurance is ever-increasing.

Here are some frequently asked questions (FAQs) your customers may ask about UK holiday home insurance cover …

Does the policy cover the costs of alternative accommodation for any guests, should the property be damaged before or during their stay?

If an insured event damages your property (so, flood, fire, etc.), then we will pay for the costs of alternative accommodation, up to set limits.

If my holiday home is being used purely by myself and my family and it is not let to paying guests, can I use home buildings and contents insurance?

If you have a second or holiday home (so a property that is not your main residence), then you will still need holiday home insurance. This is because your second home is unlikely to be occupied all the time, so it will face more significant risks.

A standard owner-occupier buildings and contents insurance policy would not cover these increased risks.

Q&A

This is because having appropriate insurance in place will typically be a condition of your contract with them. If you have the ‘wrong’ type of cover, you could be forced to pay any outstanding mortgage balance with immediate effect, as well as face charges of fraud.

Does your policy include public liability injury to guests and third parties?

Our policies include up to £2m public liability for guests and third parties.

Is employers’ liability for injury to domestic staff, such as cleaners or gardeners at my second property, included in the cover?

Our UK holiday home insurance policies include up to £5m employers’ liability cover for domestic staff.

Is malicious damage to contents covered?

Yes, it is, provided the person who causes the damage has a lawful right to be within your property (for example, if they are a paying guest).

Is my permanently installed Jacuzzi / hot tub / swimming pool covered under the What happens if my property is buildings section of the holiday left unoccupied for more than home insurance?

30 days?

Yes, fixed fittings are covered, but there are some exclusions. For example, if your swimming pool / hot tub / Jacuzzi is damaged by storm, flood or weight of snow or damaged by frost, then typically you will not be able to make a claim.

Failure to source the correct cover (i.e. holiday home insurance) will not only mean that any claims will be invalid, but you could also find yourself in trouble with your second home Are freezer contents covered? mortgage provider.

No. We do not offer freezer contents cover within our second home insurance policies.

You do not need to make ABACUS aware of this, the cover will automatically amend with an increase in excess for the majority of perils.

Note that there are certain obligations you will need to fulfil, such as making regular, logged inspections of the property (typically every 30 days). We may also ask that you drain down the heating system.

Details can be found within your policy document.

5

Lead generation – Buy or build?

Jason Hulott from Speedie Consulting explains your lead generation options.

If you are looking to generate leads for your brokerage, then you have two options. The first option is buying leads.

Buy leads There are several lead generation companies that will sell you leads.

We’ve found that a lot of brokers, especially those starting up, or that have a quiet pipeline, use the lead body as a core marketing practice.

Every time we speak to a broker, the first question around leads usually is, “Can I just buy them?”

Buying leads is fast. You pay to play.

And you can be getting leads the same day. It’s also easier to prove a return because it’s a fixed cost, whether you’re buying the lead exclusively, or whether it goes to multi-partners.

Cost and conversion rates The cost can have a significant impact on the conversion rate of the leads because it is the lead conversion that’s the most important thing, not the actual lead cost. So, if you buy leads at £10 a lead and only convert 1 in 10, it will cost £100 per sale.

But if you buy leads at £20, they might be better quality, and you convert 4 out of 10. Then, it has cost you £50 per sale.

Other things to consider when buying leads are: l what happens if the quality drops? l w hat happens if the price goes up? l w hat if all the leads actually get sold to more partners?

These are things that are usually outside of your control. And at that point, you’re now looking for other ways to generate leads. You may hop to another lead provider, but you’re also potentially going to have the same problem.

The upside, however, is that these will be unique leads. You’ll own them, and also then the lead sources will also be controlled by you. So, it means that if one of your lead sources dries up, you can simply invest more time and effort into stimulating that lead source. Or, you’ll have enough lead sources that it can simply drop away. This provides you with a level of control and then spreads the risk. This will give you some insurance (pun intended) for your lead flow.

So, one thing we suggest to clients is to use a range of lead generation services. Not just buying leads but also a second option - building leads.

Build leads Building leads is about creating many channels that you can use to generate leads for your brokerage.

Building lead generation channels could include: email, affiliate programmes, social media advertising, pay per click, SEO and many other forms of digital marketing.

The downside is this is a slower build process, and it may actually need to be seen as an investment initially, to get the chosen platforms set up and running.

Summary Buying leads is a quick and easy process, and building leads can be a slow, drawn-out process. We recommend investing in both options if possible because this will create security in your lead sources. After all, without leads you will struggle to generate income.

You may not get leads from day one.

This could take a month or two to have some leads coming in.

Talk to Speedie Consulting about their range of lead-generating services.

The message here: the headline lead cost is not the best indicator to look at.

6

Product Exposed

Unoccupied Residential Property Insurance (including Property Undergoing Works) At ABACUS, we are committed to our broker members by offering what we believe are desirable, cost-effective products that provide market-leading benefits for your customers. This time we take a look at our unoccupied residential property insurance (including property undergoing works).

Three levels of cover available plus added value benefits We have three levels of protection available, meaning you can offer your clients a choice of cover to suit their own unique requirements.

Plus, some of the key features of our unoccupied residential property owners Who is the product for? product include benefits not always Our unoccupied residential property offered as standard by some other insurance product is for anyone who unoccupied property insurance/property owns (or has financial responsibility for) a undergoing works insurance providers, vacant residential property - for example: such as: l landlords who own a residential property and who are awaiting a tenant;

l subsidence (all levels)

l someone renovating an empty property (including structural works);

l m alicious damage by tenant (levels 2 and 3)

l executors of a property in probate; l h omeowners who are having an extended holiday (such as a gap year) or working away from home for more than around 45 consecutive days; leaving the property empty; l people buying an empty property at auction; l where a house is standing empty awaiting sale; l and so on.

Unoccupied properties undergoing works Our unoccupied property insurance (including properties undergoing works) product is also suitable for residential properties being renovated - no matter whether they are to be let or owneroccupied after the works have been completed.

l p roperty owners liability up to £5m (all levels)

l e scape of water (levels 2 and 3).

These are typically all included as standard (depending on the level of cover chosen – policy limits and riskbased restrictions also apply).

Plus l a bility to switch the policy to an occupied let or owner-occupied product mid-term l e asy to get a quote and buy online l for every quotation request you submit we will provide you with a quotation for each level of cover available

What about exclusions?

The policy excludes damage caused by the contractor (which should be covered under the contractor’s own insurance).

Where structural works are taking place, no cover is in force for any part of the building that is either being constructed or worked upon.

Why choose ABACUS unoccupied residential property owners insurance (including properties undergoing works)?

We are proud of our unoccupied residential property owners insurance (including properties undergoing works) as not only does it offer, in our opinion, fantastic cover and great value for your customers, but it provides you - our brokers - many benefits too: l up to 25% commission l immediate online access to our panel of insurers - offering a variety of cover options for your customers l s imply complete your quotation online in the usual way and you will receive your quote for all three levels of cover immediately. Or, if it “refers”, we will come back to you quickly with our terms l cost-effective, flexible cover to meet your customers’ own unique needs

l m arket-leading product - our policies cover all the standard risks associated with unoccupied insurance including l flexible cover term options including many elements of protection short term policies of 3 and 6 months. which some unoccupied property insurance policies from other l we can cover most unoccupied providers exclude properties undergoing works including redecoration, redevelopment, l p olicy documentation available restoration, extensions, renovations immediately online etc. l h elp and support readily available l we have flexible limits to the value of from our Sales & Marketing Team the works being undertaken. on 01702 606 312.

7

ABACUS Out & About – Winter Edition December

It was quite a month in fact, with Robin travelling far and wide across the country. From Whitby to Wetherby, Croydon to Kenilworth and Bristol to Birmingham, the tread on the tyres got good use this month!

Down at the Docks!

Of course, car wasn’t the only mode of transport in January…

Planes, Trains & Automobiles The build up to Christmas saw ABACUS hitting the road, bearing Christmas gifts of chocolates a-plenty for many of our brokers over this period, with Robin full of Christmas cheer and visiting Birmingham, Manchester and London.

As Oleta Adams sang; ‘I don’t care how you get here, just get here if you can…’

This was very much the case for Robin in January, as he travelled to the Scottish Highlands to visit the MacDonald Group in Inverness.

Old Acquaintances & New Stadiums Robin & Richard Burgess were invited by Andrew Doidge to take in some gnawing and combatant EFL Championship action at St Andrews, Birmingham.

The wet and windy Wednesday evening saw Birmingham City take on QPR. Set in the Small Heath area of Birmingham, the stadium was a jaunty walk from the city centre, but in reality could have been a world away. It felt to us as if we had entered the spiritual home of many Brummies… only to experience painful defeat at the hands of a capable QPR side.

Aside from the result, a very pleasurable evening, and a football stadium to tick off of our list!

MILES & SMILES

Brokers Visited: 43 Miles Travelled: 2,880

January

Thankfully, the predicted bad weather did not appear in much of a fashion as Robin undertook a car ride to Stansted Airport, plane to Glasgow, then train up to Inverness to be greeted with a fantastic welcome from the team at the MacDonald Group.

Robin was met with some stunning scenery on the way, and the Scottish train ride producing some of the finest scenery that the country has to offer – the pictures don’t do it justice!

MILES & SMILES

Robin & Richard were delighted to host an evening in February with one of our valued brokers, Brightside Group, down in Southampton.

It was Robin & Richard’s first taste of Southampton, and they were keen to explore what wonders the city held for them. A fun and enjoyable (if a little chilly) evening was had down at the Southampton Quays; a superbly renovated area. We enjoyed a fine meal overlooking a beautiful quayside area, an area just along from where many of the big cruise ships take off down at the docks.

Overall, a fantastic evening that we all enjoyed immensely.

MILES & SMILES

Brokers Visited: 31 Miles Travelled: 2,723

Brokers Visited: 26 Miles Travelled: 4,324

February

Want To See Us?

In this leap year month, we were able to leap into many of your offices and meet with many of you. Robin spent time in some of the ‘Beautiful South’ – some of our stunning Southern cities like Brighton, Southampton, Cambridge & Canterbury!

If you would like us to come and discuss all matters ABACUS, please let us know. Email us at agency@sabacus.co.uk, or call us on 01702 606 312 to set up your meeting.

We greeted the New Year in by continuing our determined efforts to get out amongst the cold, January weather to see as many of you as possible this month.

8

Broker Spotlight

Anglesey Insurance Services Ltd – Geraint Bebb

1. Tell us about your brokerage.

6. What is favourite food?

We were formed in 1991. Although Anything Indian or Italian. we are a limited company we consider ourselves to be a family firm. 7. What car do you drive?

We are a predominantly personal lines brokerage but also have a strong Volvo V60. book of commercial clients.

2. What are your plans for 2020?

8. What is your favourite drink?

To continue to cater for our local area Love a drop of Guinness. and provide support for Welsh-only 9. What is your favourite Holiday speakers across Wales. destination?

3. Why do you support ABACUS? Euro Disney – A long drive but we all love it!

Fantastic products and support.

4. What is your favourite sports team?

10. Let us hear about a memorable event with ABACUS.

Football – Liverpool, Rugby Union (real rugby) – Cardiff Blues.

We have had a couple of cracking nights out with Robin & Bill Broom from Blink over in Llandudno.

Country pub with a couple of beers and great company – makes for a wonderful evening!

5. What hobbies do you have?

Used to play rugby, but now watch as much as I can. Spending time with my family.

Don’t forget your free poster packs and pens!

As a reminder, we have several promotional materials available for our Brokers to use in their offices. These are full, A2 sized (420 x 594 mm / 16.5 x 23.4 in) posters for your brokerage window or walls.

There are six posters available, which we will print and post out to you, free of charge, plus ABACUS-branded pens.

You can view the posters here.

Contact Information Accounts

Claims

Sales and Marketing

Existing Business

Tel: 01702 606 320 Email: accounts@sabacus.co.uk

Tel: 01702 606 312 Email: agency@sabacus.co.uk

Tel: 01702 606 311 Email: claims@sabacus.co.uk

New Business Team

Tel: 01702 606 304 Email: newbusiness@sabacus.co.uk

Tel: 01702 606 306 Email: existingbusiness@sabacus.co.uk

The information contained above is not intended as legal or broking advice. Specific advice should always be sought on individual requirements and it is always necessary to read the contractual documentation for full details of the product and cover provided.

This newsletter is managed by ABACUS, the content including all views and expressions are those of ABACUS. ABACUS is one of a range of products marketed and distributed by BLINK Intermediary Solutions. ABACUS is provided by Alan Blunden & Co Limited, Baxter Building, 80 Baxter Avenue, Southend on Sea, Essex, SS2 6HZ. Alan Blunden & Co Limited is authorised and regulated by the Financial Conduct Authority.

Full details of FCA authorisations can be found at www.fsa.gov.uk/register Produced by iamyourdesigner - 07969 663 847 | 1992

ABACUS

Baxter Building 80 Baxter Avenue Southend on Sea Essex SS2 6HZ Tel: 01702 606 300 Email: info@sabacus.co.uk Fax: 01702 606 369