May 2013

Win a gourmet pack from Farro Fresh
worth $250

We have a gift basket packed with delicious products from our valued client, Farro Fresh. Send us an email and you could win it!

To go in the draw, just click on the link below and send an email with your name, contact number, and the answer to this question:

In which NZ region is it hard to arrange adequate cover on commercial properties?

Hint: you’ll find the answer in the first article in this newsletter.

Click to enter now

This competition is free to customers and prospective customers of Glenn Stone Insurance. Prize is a gift hamper from Farro Fresh containing food and beverage products. No cash alternative can be provided. Prize draw closes on 31 May 2013. Glenn Stone Insurance will contact the winner and may feature the winner’s name in the next issue of Glenn Stone Insurance News.

The hidden risks with bricks and mortar

The issue

On the face of it, commercial property insurance seems a pretty straightforward product. There is a physical asset – a building of some kind that will need to be repaired or rebuilt in the event of fire or other insured damage. The insurance needs to pay for this.

You will also need to think about statutory and public liability, as well as covering your operating costs and loss of income if the building is out of action.

These are all risks that are well understood by the insurance industry. So arranging adequate cover should simply be an exercise in ticking the boxes, right?

Think again. It's possible to be badly burned by factors that a tick-the-box approach will not cover.

A good insurance broker should be part of your due diligence team

Instead of treating a property purchase as a matter for your accountant or solicitor, it pays to run the deal past a knowledgeable insurance broker as well.

For example, a commercial property in Wellington being marketed at an attractive price might come with a hidden risk. It is significantly harder – and sometimes impossible – to arrange adequate cover for many commercial properties in the greater Wellington region. The insurance companies have basically stepped back from this market.

You might still go ahead with the purchase if the price were right – but you would need to factor the insurance risk into your purchase decision.

Your insurance broker can also help you add value to a commercial property by showing how to future-proof your cover. In one case, we advised a customer to install a sprinkler system in order to protect the ability to obtain cover in the long term.

We’re always here to talk

For customers who are looking at adding to their commercial property portfolio, we have one piece of advice. Run the deal past us.

We’re happy to look at the property in question and give you a heads-up on any insurance issues we spot. This could provide you with valuable ammunition for your purchase negotiations – or you might uncover something that undermines the viability of the deal. Either way, you’ll be better off.

Insurance isn’t just about arranging cover and fixing up the damage. It’s also about spotting potential pitfalls that a land agent or lawyer may not even be aware of.

If you’d like us to run our eyes over your next property purchase, call us on
(09) 826 0053 or email us today.

Case study:
Protecting a property buyer from

The issue

No property owner wants to be in the position where they need to claim on their policy, only to find the payout is scaled back because the sum insured was too low. It could be a financial hammer blow just when you need a helping hand.

Glenn Stone Insurance was asked to look into the cover on a large property that one of our customers was buying. We discovered that no registered valuation had been completed for at least six years. Our client had also been provided with old insurance invoices instead of the most recent invoices. This set off alarm bells, as the current premium was suspiciously low at just $11,000.

The response

We advised our client that the deal should be held back while we investigated the insurance status and a registered valuation was obtained. It emerged that the most recent insurance premium was closer to $17,000 and the sums insured under the policy should be increased by 78% to accurately reflect the value of the property. This led to a revised premium of $26,000, which the buyer was able to factor into negotiations with the vendor.

The deal was concluded at a satisfactory price and we were able to arrange cover that reflected the true value of the property. If a claim is ever made, the new owner won't have to worry about under-insurance.

Do you need a property insurance champion on your team?

We are always happy to give advice on policies and help clients troubleshoot their problems. Call us on (09) 826 0053 or email us today:

Staff Profile:
Lynley Evans, Domestic Broker

What's the role of a Domestic Insurance Broker at Glenn Stone Insurance?

I offer two key advantages to our customers. The first is convenience, because a broker can arrange all the insurance policies you need. Secondly, I have daily contact with many insurance companies and know where to obtain the best insurance protection at the best cost.

What do you find most satisfying about your job?

Building up a relationship with our customers. If the client is happy, you know you have done your job well, and they will tell their friends how great it is to deal with a broker.

What did you do before starting at Glenn Stone Insurance?

I worked for IAG, which is one of New Zealand’s largest insurance companies. I was a customer services representative, selling domestic insurances and looking after existing customers.

Is there any advice you would give people looking to arrange insurance?

Make sure your insurance covers you for all circumstances that are important for you. For instance, you could choose to take a cheaper premium with a lesser cover for your contents insurance, but you might not be covered for total replacement. Another issue is that people might not be aware of the need to name certain items over a specified limit on their policy. So for example if they lost a ring worth $5,000 they may only get the limit in the policy which could be as low as $2,000 unless the item was specified on the policy.

Any hobbies or interests outside work?

I love my sport and the gym. Life's very busy with three boys, who all play softball competitively.

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Contact Details

Level 1, 41 Totara Ave
PO Box 15854, New Lynn
Waitakere 0640, New Zealand
Tel: +64 9 826 0053
Fax: +64 9 826 0683
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