Realty will advise you from scheme conception, acquisition, ground break and build, to lease formation, letting and fit-out, through occupation and operational management, to refurbishment, repurposing and sale.
Realty has an extensive track record of handling the insurance and risk management of major real estate development projects. We guide our clients and professional teams through pre-planning technical challenges and Joint Contracts Tribunal contract formation, as well as undertake insurance programme design, placement, and major loss support. Realty strongly recommends that the developer retains control of the insurance for the construction phase of the development.
We access market leading construction insurers for large or complex developments. Through recent projects we are experienced in cross-laminated timber and other emerging materials technologies, living walls, and modular construction techniques. Our capability includes inherent defect and residential warranty solutions, archaeology, environmental risk, judicial review, restrictive covenants, defective title and rights of light.
Cover is also available at short notice for small new builds, fit-outs, refurbishments and alterations.
Realty has deep experience of satisfying the insurance enquiries made by lenders, prospective tenants and purchasers. Demands for first loss payee and joint insured status can create conflict between the developer and the lender. We are experienced in navigating conflicting contractual and commercial expectations, which are often compounded requirements that only emerge after the insurance is finalised.
Tenants’ contractors often demand joint insured status for the building during tenant fit-out, which the tenant has no right to grant. Realty enables pragmatic solutions to navigate these contractual and relationship complexities, ideally by being involved early enough to help the tenant structure its pre-tender contract.
Realty advises on business interruption exposures arising from insured damage delaying practical completion, to insure ongoing interest payments or lost rental income or sale proceeds.
Demands for first loss payee and joint insured status can create conflict between the developer, our client (in whose best interests Realty works), and the third party who represents the return on capital aspect of your endeavours. Realty has considerable experience in the complexities of balancing contractual and commercial requirements which are often compounded by the enquiries arising after the insurance is placed.
Realty will advise you on how to assess your business interruption exposure and recommend how to structure insurance to protect you for ongoing interest payments incurred or rental income or sale profits lost due to insured damage impacting practical completion.
The compartmentalisation of the insurance market between construction phases, during fit-out, defects liability and occupation creates its own risk factor that needs careful consideration. Realty proactively manages the post practical completion strategy from the outset.
We advise on sprinkler protection, fire separation, car parks with electric vehicles and charging facilities, fire safety and other aspects of risk management.
We create bespoke strategies to deal with the gradual handover of large complex projects.
We can review the insurance clauses of leases and property management contracts so that the disparate interests of stakeholders are reflected in the appropriate insured status, and subrogation rights dovetail with legal obligations, commercial needs and accepted best practice.
The insurance of assets, singularly or in a portfolio, requires a strategy that satisfies lease obligations and borrowing facility covenants. It must not prejudice the tenant or create reputational harm to the landlord, but it must enable recovery of premium from tenants where appropriate. The choice of insurer of good standing should add value through broad policy cover, risk management advice and an effective claims service. Realty’s considerable expertise delivers on all these areas of focus.
Additionally, Realty manages risk data, premium apportionment and document production in a secure database (not spreadsheets), giving you peace of mind that your data is both secure and easily accessible.
Risk management capability includes supporting you with site visits by insurers to ensure that requirements for improvement are proportionate, affordable and agreed by all parties, proactive advice with repurposing and refurbishments, and assistance with Pool Re’s Vulnerability Self-Assessment Tool to secure 10% reduction in Pool Re Terrorism premium.
As well as insuring construction phases and operational assets, Realty will deliver all your corporate insurance needs: Professional Indemnity, Directors’ & Officers’ Liability, Cyber, Crime, Office, Computer, Personal Accident & Travel, Motor and so on.
Realty works closely with loss adjusting firms to ensure that their engagement is always objective, being mindful to represent Realty’s values whilst working for the insurance company. This approach means that Realty represents its clients effectively at all stages of the claim lifecycle: intervening to overcome information flow bottlenecks, influencing policy interpretation to mitigate repudiation, and monitoring claims settlement.
Claims effectiveness is at the heart of our service. It is your usual advisor at Realty who will advocate for you in claims matters, just as they represent you in all other requirements.
Our key contacts for real estate and development insurance are:
Realty Insurances Limited is an independent intermediary, authorised and regulated by the Financial Conduct Authority (FCA). You can check these details on the Financial Services Register by visiting the FCA’s website at www.fca.org.uk or by contacting the FCA on 0800 111 6768. Our FCA register number is 307515. Registered Office: 70 Grosvenor Street, London W1K 3JP. Registered in England No. 482966. Information Commissioners Office Registration Reference Z5702079.
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