Care home insurance – what should be covered?
Adrian Carter outlines what should be included in a care home’s insurance policy. During the last 15 years I have visited many care homes in all parts of the country and virtually every one of them has had the same basic requirements as far as insurance is concerned. Contents, including residents’ belongings and their personal money, and buildings cover are obvious enough. Most companies provide accidental damage cover as well as storm, flood, fire, etc, but home owners should check that they have new for old claims settlement on the contents, and reinstatement cover on the buildings. It should be clarified with the insurer as to whether or not VAT needs to be included on the building reinstatement figure – some require it and some don’t. It shouldn’t really be required as the likely maximum loss would result in a rebuild which, for a care home, is currently exempt from VAT. The reinstatement cost or rebuilding cost is not the same as the value of the building or business, so it is important to use the corre