CLIENT MATTERS

The on-line newsletter for MKIG clients September 2014

(Edition 3)

Welcome to our Autumn 2014 Newsletter

The kids are back to school which means it's time for our third quarterly Newsletter,"Client Matters" of 2014. Below you will find an article on the Adequacy of Sums Insured and some tips on securing your home as well as learning a bit more about our colleague Colette Walsh.

I hope you find the Newsletter informative and interesting.

If you have any areas or questions you would like us to cover in future editions please let us know.

I would like to thank you for your ongoing and valued support and if we can be of assistance please let me know.

Regards,

Fergal Kennedy

Commercial Lines

The importance of having accurate and adequate sums insured under a commercial policy

The importance of having accurate and adequate sums insured under a commercial policy cannot be overstated for four main reasons:

The sums insured are the primary factor in determining the premium an insurance company will charge
In the event of a claim, having inadequate sums insured will result in application of the average (under-insurance) clause by an insurer which will result in the claim amount being reduced in direct proportion to the extent of the under-insurance
In the event of a total loss, where a building or all plant/equipment or stock within it is completely destroyed, the amount payable by the insurance company will not be sufficient to cover the cost of reinstating the building or replacing all of the damaged plant/equipment or stock
Being over-insured will result in paying unnecessary premium

Often a policyholder only discovers that they are under-insured when they make a claim at which stage it is too late to rectify and they incur unanticipated and sometimes unsustainable losses. For this reason it is vital, in the first instance, to make sure when taking out a new policy that the relevant sums insured are accurate and adequate, but equally it is as important to review each sum insured regularly before the annual renewal date of your policy.

For property owners making sure that the buildings sum insured is adequate is essential. A mistake often made is to use the market value as the basis of this sum insured. The correct basis of insuring a building is to base the sum insured on it's reinstatement cost i.e. the cost of rebuilding on the existing site including the cost of demolition, site clearance, statutory applications (planning permission costs) and professional fees for supervision of repairs. The extent of finishes and features incorporated into the building should also be taken account of e.g. marble tiled floors, stone faced walls etc. Given the considerable number of variables involved in determining the rebuilding cost and the fact that building rates/rebuilding costs often fluctuate it is prudent to seek professional advice from a Chartered Quantity Surveyor or other appropriately qualified expert to determine an accurate figure. This is a relatively inexpensive service and a wise investment which will ensure your peace of mind, removing any guesswork from the process.

The correct basis of insuring the fixtures and fittings and contents of a commercial building, subject to the policy providing reinstatement cover, is it's new replacement cost at the time of the claim but excluding vat if you are registered. Similarly the stock sum insured should reflect the cost to you from your suppliers to replace all stock excluding VAT if you are registered. Most policies automatically include an extension for seasonal increases in stock levels but this is limited and you should check that it is adequate to cover the replacement cost of all stock during your busiest seasons of the year e.g Christmas.

Under-insurance can have serious financial consequences in the event a claim but can be easily avoided with proper preparation when arranging cover, obtaining sound professional advice and regularly reviewing your sums insured.

For further information please talk to Fergal, Michael, Linda, Mark, Colette, or Doreen in our Commercial Department on 01-8902277 who will be delighted to answer any questions you may have on this topic.

Staff Member Profile

In this section we feature a member of the MKIG staff and in this third edition Colette Walsh comes under the spotlight!

What was your first job? Paddy Mooney Insurance in Malahide

How old were you when you first started working in insurance? Seventeen

Favourite food? Stir fry

Coke or Pepsi? Coke .... of course

Red or White Wine? Red - loads of!

I phone or android? Had a smartphone, just got rid and have gone back to my good old reliable Nokia!!!

Favourite song? "Gold" by Spandau Ballet - went to see them in the 3 arena (formerly the O2) a few years ago and they were fab!

What is your earliest childhood memory? Visiting Boyers, Dublin with my Mam

What is the best TV programme ever and why? Downton Abbey - love it.

What is your favourite phrase? "It's nice to be nice"

If there was one place in the world you could visit where would it be? New Zealand

If money was no obstacle what car would you drive? Just any new car would do at this stage!

Person you most admire? My Dad - he's my rock

3 items you would bring with you if you knew you were to be marooned on a deserted island? Mascara (I look sick without eye lashes), Sunblock (always good to have sunblock) and Weetabix (you could build a house on Weetabix, try getting it off a high chair!!)

If you didn't work in insurance what job would you like to have and why?

Interior Design because I love doing DIY

Personal Lines

Tips to improve the security of your home and property.

According to CSO statistics published in 2013 (2014 stats are not yet available) crime and in particular burglary is down on the previous year, yet it seems that we hear of another burglary at a home every other day. Home owners can take precautionary steps to help secure their home and prevent the threat of a burglary. We have compiled a list of useful tips to help secure your home.

1. Install a burglar alarm (preferably monitored by the alarm company) and be sure to put it on at every available opportunity. Most insurers will give a discount of 5 - 15% (depending on the type of alarm) on the annual premium.

2. Replace the chain lock on doors with a secured doorstop. A chain lock on a door is not strong and if the door is opened a simple push (on the door) by the burglar will pull the screws right out of the doorframe. A doorstop that is screwed into the floor, will make it nearly impossible to open the door further.

3. Reinforce your doors by installing dead-bolt locks directly across from each hinge. This way, the door is equally stable on both sides. If possible also install a secure Chubb lock on the front & back doors.

4. Most new windows come with locks which help to secure your home. If buying new windows make sure the windows come with locks. Some locks can be tampered with so ask your window installer to place metal pins in the window frames as this won't allow the window to move any further, and thus helping to keep the burglars out.

5. Look into installing an alarm on your windows which emits a piercing sound when they are opened/forced. Almost two-thirds of burglaries involve forced entry, which is partly due to weak door locks and mounting hardware e.g. screws, hinges, doorframes, according to Consumer Reports so it is worthwhile upgrading the security on your windows and doors. Remember it's always important to keep the key within reach of the door or window (but out of the way of prying eyes). This can save valuable time in the event of fires or any other dangerous situations that may occur.

6. Install motion detectors hooked up to outdoor lights on the perimeter of your home, particularly situated near front & back doors and windows.

7. CCTV/cameras on the perimeter of your home can give you additional piece of mind. If you cannot afford the real thing, install mock cameras and signs which state your home is being monitored by CCTV as a deterrent.

8. Install curtains or blinds on the ground floor windows (and on any windows at the front door). This prevents thieves from seeing what items you have in your home.

9. Letterboxes can give burglars access to your home. If your letter box is set in your front door or patio install a cage or a box around the inside of the box. Remember to never leave your car or house keys on display near the letterbox. Burglars have been known to access the keys via the letter box using a steel or magnetic rod.

10. Watermark your items with a watermark pen, and display a sticker saying your items are watermarked on the front of your house.

11. Don't leave a calendar visible (near a window which strangers can look in) which might have details on holiday dates or family members past-times/hobbies etc. The calendar gives a potential thief information on when the house is likely to be unoccupied.

12. Chain up your patio sets, ladders and wheelie bins as they can be used to gain entry to the first floor , or even for carrying the stolen items.

13. Make sure your shed is locked with a secure padlock and curtains hung on the windows.

14. If you see chalk symbols on a wall on your road or the estate, notify the Garda� immediately. Garda� have suspected that thieves are monitoring houses over a period of time and draw symbols on the walls of particular houses identifying them as targets.

Please bear in mind that some Home Insurance policies may restrict theft cover where the house has been left unsecured. If you have any concerns regarding your house insurance policy please call us on 01 890 22 77.

If you are going away on holidays you may need to take further precautions to secure your home while you are away.

Have your home regularly checked (by a family member, friend or neighbour) and to pull or draw curtains regularly to give the impression that someone is living in the house.
Invite a neighbour/friend to park in your driveway.
Ask a neighbour/friend to remove your post daily from your letterbox or patio and to put away your bin if it had been put out for collection.
Let neighbours know your travel plans and ask them to keep an eye on your home.
Install a light timer in several of the rooms of the house (kitchen, upstairs landing, bedroom) and set the timer to come on & off in the different rooms at different times of the day. This will give the impression that someone is at home.
Ensure that all your tools are locked in the home or shed.
Consider storing your bin or garden furniture inside (or in the shed) while you are away as thieves can use them to gain access to your property.
Store the keys of your car(s) in a drawer or away from view (from windows and letterboxes).
Don't leave cash, credit cards or expensive items on view.
Avoid discussing your holiday plans on social media networks or updating your accounts whilst away.

Please bear in mind that most Home Insurance policies will have an un-occupancy clause which restricts cover (e.g malicious damage, escape of water, attempted theft etc.) if your property is left unoccupied for a specific period of time (typically 30 days or more).

Thieves are usually after items they can sell quickly for cash, like jewellery, mobile phones, laptops, game consoles and the Garda� estimate most burglaries only take approx. 10-15 minutes to complete. Try your best to keep these items out of sight. Hopefully you will find the above tips of use and help to stop your home being targeted by burglars.

If you have any questions concerning your Household policy or would like a quote, please call us on 01 890 22 77. We can offer cover on Main Residences, Rental Properties, Holiday Homes, Mobile Homes, Unoccupied Properties and Non-Standard Properties.

MKIG - " Excellence in Insurance for over 40 years "

Lordan Magnier & Partners Ltd t/a Michael Kennedy Insurance Group is regulated by The Central Bank of Ireland. Registered Office: Forster Way, The Plaza, Swords, Co. Dublin under number 42351.

Give us a call today on 01-8902277 or visit us on www.mkig.ie
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