Turning property damage to your advantage

26 May 2015

When a Surrey hotel was flooded, the owner seized the chance to rebuild it better than before

Modifications and changes in use over a Surrey hotel’s 200-year history meant the layout was not ideal for a modern hotel. There were two bar areas on the ground floor and the men’s and ladies’ toilets were located in different places. 

The owner decided to change the layout, following negotiations with the loss adjuster and insurer. The ground floor was opened up with one large bar area and a single toilet block. 

The owner also decided not to carry out certain reinstatement work. With the assistance of Echelon, JLT Specialty’s large loss practice, he secured agreement from the insurer to put this cost towards refurbishment work. 

The insurer was open to negotiation and various changes were made across the site. For example, the kitchen layout was inefficient and some equipment was redundant. 

By agreeing the notional cost of like-for-like replacement the insured was able to redesign the layout and incorporate more suitable equipment to meet the future demands of the hotel at no extra cost. 

Had the owner reinstated the hotel exactly as it had been prior to the flood, he would have lost the opportunity to modernise it and create a property that better suited its present-day use. 

For further information, please contact Ian Fulton, Claims Consultancy on +44 (0)20 7558 3233