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Should insurance claims for cancellations include moves?

 
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Pengman



Joined: 22 Apr 2019
Posts: 65
Location: Portland, Dorset UK

PostPosted: Sun Jan 31, 2021 6:03 pm    Post subject: Should insurance claims for cancellations include moves? Reply with quote

In compiling my insurance claim for bookings cancelled due to Covid 19, I'm considering including the value of those bookings where the guest agreed that the booking be moved to other dates, my logic being that the dates they were moved to are no longer free for another guest to book. Anu thoughts or comments please?
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zebedee



Joined: 12 Sep 2014
Posts: 1216
Location: yorkshire dales

PostPosted: Sun Jan 31, 2021 7:52 pm    Post subject: Reply with quote

Yes, claim for them.
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Joanna



Joined: 23 Aug 2007
Posts: 1025
Location: Chester, North West England & Sidmouth, East Devon

PostPosted: Sun Jan 31, 2021 10:14 pm    Post subject: Reply with quote

I claimed for them & they were allowed by Schofields - you have lost out, as you say, even though you haven't refunded.
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Jo

Joint owner of Baker's Cottage in Chester & Chandler's Cottage in Sidmouth
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Pengman



Joined: 22 Apr 2019
Posts: 65
Location: Portland, Dorset UK

PostPosted: Fri Feb 05, 2021 10:38 pm    Post subject: Reply with quote

Iíve now been sent a claim form by the loss adjusters acting for my insurers and it asks for details of both cancellations and deferrals, so that looks hopeful. But worryingly, the claim form makes no provision for claiming for ones non-productive costs- things like energy costs incurred during the lockdown, TV license, water and sewerage standing charges, broadband and line rental, website hosting etc etc. Without any income to cover them, as far as Iím concerned this is just dead money and are genuine losses and I shall be adding them to the claim. Any views?
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Joanna



Joined: 23 Aug 2007
Posts: 1025
Location: Chester, North West England & Sidmouth, East Devon

PostPosted: Sat Feb 06, 2021 12:24 pm    Post subject: Reply with quote

Depends on what your policy says. Our policy clearly only covered us for cancelled bookings - for example we couldn't claim for bookings that we might have had but didn't or for any other expenses. Maybe that's what 'business interruption insurance' is for?
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Jo

Joint owner of Baker's Cottage in Chester & Chandler's Cottage in Sidmouth
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zebedee



Joined: 12 Sep 2014
Posts: 1216
Location: yorkshire dales

PostPosted: Sat Feb 06, 2021 2:05 pm    Post subject: Reply with quote

Pengman wrote:
Iíve now been sent a claim form by the loss adjusters acting for my insurers and it asks for details of both cancellations and deferrals, so that looks hopeful. But worryingly, the claim form makes no provision for claiming for ones non-productive costs- things like energy costs incurred during the lockdown, TV license, water and sewerage standing charges, broadband and line rental, website hosting etc etc. Without any income to cover them, as far as Iím concerned this is just dead money and are genuine losses and I shall be adding them to the claim. Any views?


They may well come back to you asking to see previous years accounts or other information. They will deduct from your claim what they think you have NOT spent eg cleaning fees.
You wonít get your bills paid as well, as those bills would be paid from your bookings, which they are covering.
They also wonít pay for any empty weeks no matter how hard you try and prove you would normally have been booked those weeks.

May people including myself left void periods between bookings when open last year, so that is more loss, but seen as personal choice.

On the other hand, you have had the ability to apply for the government grants which the insurance companies tried to deduct from claims but got their knuckles rapped by the Courts. Those grants are taxable, as is your insurance payout according to my accountant.
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Drax



Joined: 21 Jul 2016
Posts: 154
Location: Yorkshire Dales

PostPosted: Sat Feb 06, 2021 5:10 pm    Post subject: Reply with quote

[quote="zebedee"]
Pengman wrote:

Those grants are taxable, as is your insurance payout according to my accountant.


Hi zebedee,
According to my accountant the grants are not taxable. I hope he is correct.
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Pengman



Joined: 22 Apr 2019
Posts: 65
Location: Portland, Dorset UK

PostPosted: Sat Feb 06, 2021 5:55 pm    Post subject: Reply with quote

zebedee wrote:

They may well come back to you asking to see previous years accounts or other information. They will deduct from your claim what they think you have NOT spent eg cleaning fees.
You wonít get your bills paid as well, as those bills would be paid from your bookings, which they are covering.
They also wonít pay for any empty weeks no matter how hard you try and prove you would normally have been booked those weeks.

Theyíve already asked me to submit my last two years accounts (I can only do one as Iím only in my second year now). And Iím not claiming for empty weeks.

But regarding my costs, i.e. bills paid that were unavoidable, letís say that over the same dates of the first lockdown the previous year I had an income of £10k and a year later, during the first lockdown, I got paid cancellation deposits of £1k and have a claim for cancellations over and above this, of £4K. To my mind, if they were to reject my claim for cancellations in total, I would have a legitimate claim for 90% of my other costs because I will have demonstrated that only 10% of them will have been covered by income. On the other hand, if they allow my £4K claim for cancellation costs in full, I will have recovered £5k for bookings and will have a legitimate claim for 50% of my other costs because only 50% of them will will have been covered by income. So I am thinking of making my claim on a minimum and maximum basis. Seems logical, fair and reasonable to me.
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Sparks



Joined: 12 Sep 2018
Posts: 23

PostPosted: Sat Feb 06, 2021 8:37 pm    Post subject: Reply with quote

Drax wrote:

According to my accountant the grants are not taxable. I hope he is correct.


Your accountant needs a sharp kick in the balls.

https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim40456
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zebedee



Joined: 12 Sep 2014
Posts: 1216
Location: yorkshire dales

PostPosted: Sat Feb 06, 2021 9:59 pm    Post subject: Reply with quote

As the FCS court case has shown, itís the wording of your policy that counts.

What is the precise wording in your policy that you are relying on to make your claim??
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Pengman



Joined: 22 Apr 2019
Posts: 65
Location: Portland, Dorset UK

PostPosted: Sun Feb 07, 2021 11:14 am    Post subject: Reply with quote

zebedee wrote:
As the FCS court case has shown, itís the wording of your policy that counts.

What is the precise wording in your policy that you are relying on to make your claim??


Checked the Policy and itís the Ďnet ascertainable loss of rentals pre-booked in advanceí. So Iím not covered for anything over and above that. Thanks Zebedee - youíve saved me some work and stopped me looking rather foolish Smile
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