Relevant claims for renewal?

lulu999

I have just received my renewal quote from my insurance broker for a block of lock-up garages I own. (All let, don't use any myself.)

The renewal premium has gone through the roof due to 3 claims in the last 2 years. When I looked back over my records there have only been 2 claims against this block of garages but another claim gainst a different property (a let house) on a completely different policy (same insurance broker).

Is this 3rd claim relevant in calculating the renewal premium for the garages?

DullGreyGuy

When you get a quote for car insurance they ask about any incidents you've been involved in with a motor vehicle not just cars and not just this car. 

There will be some things that are relevant about the type of property and its location etc but others are more about what sort of person you are in general. Some people spill some red wine on their carpet and so buy a rug, others put an insurance claim in. 

Ultimately ask your brokers but increasingly policies are following the car insurance and asking about any claims in broadly the same class of insurance not just the same product type. 

lulu999

I understand the point you make. The only thing that connects these properties is my ownership of them. I don't use them or reside in them myself.

I dread to think if I had several properties (increasing likelihood of claims due to the sheer number) and any and all claims would potentially affect all renewals!

It just doesn't sit right when I'm paying separate premiums for separate policies on separate properties.

Perhaps I need to change the ownership structure.

CSI_Yorkshire

lulu999 said:

I understand the point you make. The only thing that connects these properties is my ownership of them. I don't use them or reside in them myself.

I dread to think if I had several properties (increasing likelihood of claims due to the sheer number) and any and all claims would potentially affect all renewals!

It just doesn't sit right when I'm paying separate premiums for separate policies on separate properties.

Perhaps I need to change the ownership structure.

But you are a common element.  The risk profile for the property includes that, it would be wrong not to.

DullGreyGuy

lulu999 said:

I understand the point you make. The only thing that connects these properties is my ownership of them. I don't use them or reside in them myself.

I dread to think if I had several properties (increasing likelihood of claims due to the sheer number) and any and all claims would potentially affect all renewals!

It just doesn't sit right when I'm paying separate premiums for separate policies on separate properties.

Perhaps I need to change the ownership structure.

And hence why hire car companies have aggregate excesses in the many millions. When you operate 2,000,000 motor vehicles the question isnt if you are going to have any claims or not but how many even though the only common factor is you own them and allow some random person to drive them. 

There would be no point in them insuring from the ground up as if on average they have $100,000,000 of claims then they would be paying that plus IPT + a risk margin + operational cost + profit margin just to cover what they are certain will happen before then adding on the true insurance for what might happen in a bad year. 

As your needs get bigger with more assets under cover there are more options you can look at. Global banks have hundreds of thousands of locations (offices, branches, ATMs) all insured under single master policies