March 2011 - Quarterly Newsletter

3 March 2011

Welcome to our revamped quarterly newsletter.


Why are we different?

We tailor solutions specifically for your property owning customers. Examples include malicious
damage by tenants without restrictions with a low policy excess, and unrestricted cover for periods of mid-term unoccupancy for our Premier Residential and Commercial policyholders.

We also provide:
• Innovation in product design with the introduction of standard features for our residential contracts such as Property Emergency covers and Legal Indemnities
• Competitive Broker remuneration levels
• No Wholesaler policy fees applying to Residential and Commercial policies

Our promises to you

  • We will not cherry pick your best business, but provide you with a one-stop facility. This includes providing solutions for unoccupied periods and all tenancy types including asylum seekers and DSS referrals. Distressed cases can be considered by our Lloyds market
  • We do not transact business on a direct basis
  • Property Protector will only be available via a limited number of brokers
  • We will always maintain our service standards

Commercial Business
Many of our leading supporting brokers place both residential and commercial business with Property Protector. Currently, two thirds of the business we write is for residential landlords, however the commercial book of business is substantial..

All the commercial policies are underwritten by Zurich Property Investors Unit - a major UK property insurer with a GWP of £220m, representing a 19% market share of UK Property Owners’ business.

We have capacity to write risks up to £100m. Current risks include factories, shops and offices within a wide range of trades.

Our commercial rates have been reduced for certain types of business in 2011. If you currently only use our scheme for residential business, give us a try on your commercial cases.

Commercial Property Market
The recession has resulted in the number of unoccupied commercial properties on insurers’ books nearly doubling over the last two years. Longer term unoccupied cases will be more challenging to place.
Depending upon the security at the property, underwriters may use excess levels and restricted perils to reduce their exposure on cases.

Overview Residential Landlords Market
Recent press articles have highlighted the excellent returns professional landlords are currently obtaining, with demand in certain parts of the country outstripping supply for accommodation. Indeed, mortgage providers
are returning to the market, albeit at less attractive terms, than at the height of the boom. Some pundits still remain cautious though, due to the government’s plans regarding housing benefits reforms.

Insurance premiums remain under pressure for the time being and for those landlords sensitive to price, our ‘Lite Contract’ remains competitive against the likes of Direct Line. We have recently agreed with underwriters that the ARAG covers can be excluded from this contract, giving you a slight edge on premium, which again has boosted new business.

As market conditions improve you will still have the opportunity to up-sell the benefits of our premier
product. Whilst market conditions appear to favour premium increase in 2011, most of the feedback we are receiving is predicting similar conditions to those experienced in 2010, so another hard year for us all. It would seem that the hard market for Property Owners is still over 12 months away!
Rest assured that the Property Protector team will help whenever we can.

Our New Tenants’ Contents Policy

We are delighted to launch this new contract after a successful trial with six of our leading supporting brokers. The contract is underwritten by the RSA consortium and administered by TULP, with wordings only available via the Property Protector suite of products.

The product is currently available to all brokers. Please send in your submissions through the normal channels.

This policy is available for all tenants -including students - living in flats, houses and shared accommodation for properties of all sizes throughout the UK.

The Tenants’ Contents Policy covers loss or damage as a result of all standard perils, and also extends to include Accidental Damage.
Additional benefits include:

• Replacement locks following Theft of Keys
• Freezer Contents
• Personal Money
• Accidental Loss of Metered Water
• Temporary Removal and Alternative Accommodation
• Tenants’ Liability to the Public Personal Possessions

Additional cover for personal possessions can be provided if they belong to you or your family, including:
• Pedal Cycles
• Pictures and Paintings

Product Training Sessions
Would you and your staff benefit from product training?
We have recently carried out sessions on product features including the new tenants’ contents contract
and using our comparison site information. We can come to your offices and the training usually takes
no more than an hour. Let Sean Neal know if you’re interested and we can arrange a suitable time and

Property Owners’ Rollovers are also available. If you are a Member with an NIG account and feel you need to consider this option, please contact Richard Holmes.

Commission Rates
Your Commission levels will follow the existing residential and commercial levels including the new
tenants’ contents. Importantly, commission levels will remain the same in 2011 and the contract
is only available via network nembers.

Several Members receive 30% commission, with the starting point being 20%. Enhanced rates are dependant upon the size of your account.  Rollovers are an ideal opportunity to increase your account size.

Harrogate Conference
It was a pleasure to meet so many of you at this event in November.
We are delighted to announce that Jeremy Pace of Pace Ward Ltd of Stoke on Trent was the winner of our promotional draw and the case of champagne is winging its way.
Many thanks to Zurich for allowing us space on their stand.