The December 2013 copy of Building Magazine contained an article in relation to a Bristol wine warehouse tenanted by Accolade Wines, which is showing signs of “defects” and “damage” to the building, which was occupied as a wine storage facility.
The claims of the occupier are that “defective piles” which provide “insufficient support for the floor slabs” have led to “differential settlement” across the floor of the £41M warehouse and the subsequent “cracking of the slab”. Claims of defective workmanship have also been alleged and that the slabs and structure may not be suitable for the purpose for which they were intended.
Claims have already been made against the piling contractors, but the further legal claims could involve costs and awards of up to £141M including £33M for the cost of remedial works and up to £104M in temporarily relocating the tenant have been intimated.
It is often difficult to convince property owners and developers to consider latent defects insurance but given the size of the potential bills and business interruption emanating from instances such as this, regardless of alledged fault, underlines the importance that latent defects insurance can play in ensuring the occupants of buildings and owners of buildings can maximise their full earning potential.
Given some of these claims in relation to the inadequacy of the building, the latent defects policy would provide first party cover in order to reinstate damaged portions of the building whilst at the same time, loss of rent insurance could protect the landlord and tenants in ensuring that both of their businesses were protected.
At Mason Owen Financial Services Ltd we regularly discuss this class of business with developers have we have experience in underpinning complex building projects with peace of mind cover that protects developers, owners and financiers from the unexpected.
Quotations are relatively easy to obtain and we are always happy to provide guidance in this area should clients require. Why not contact our team for a quotation?
Keith Burn – 0151 255 2622 – Keith.firstname.lastname@example.org
Andrew Terrace – 0151 255 2614 – Andrew.email@example.com