Property Developer Case study:
The latest project insured last week by Goldcrest Insurance was property developer insurance for a property developer who had purchased a 5 million commercial property in London.
The developer had got planning to turn an old 50,000 sq foot furniture warehouse into 27 residential apartments, which were to be sold, and a handful would be part of the governments help to buy scheme. The government are working with property developers incorporating this help to buy scheme which will in turn benefit many who are trying to get onto the property ladder.
The property developer needed to take out an unoccupied commercial building insurance to protect the asset before and whilst the premises was being developed. He chose to take out full perils cover which is an extension on FLEA insurance. Full perils gives you subsidence, escape of water and malicious damage cover on top of the standard FIRE / LIGHTENING/ EARTHQUAKE / EXPLOSION / AIRCRAFT.
Property Developers Insurance – Areas to consider
There were no restrictive covenants on the property stating the premises could not be converted into residential so that was all ok and as all works were taking place inside the existing structure there was no need to obtain Right of Light insurance.
The conversion was to cost 1.5 million and the contract length was to last 18 months. As the developer was undertaking all the works himself we put together a contractor’s combined insurance to cover him for the duration of the project.
No building warranty insurance was needed in this instance as the developer had purchased a long leasehold, so all in this was a straight forward project for us to insure.
At Goldcrest Insurance we always make our developers are fully aware of all the different types of insurance they might need and can facilitate by placing them all in house. Property developers insurance is a key area for us, so for any development needs please give us a call on 0208 440 7400.
