Masterpiece appraisal update and loss prevention webinar Q&A

All questions submitted during Chubb's Loss Prevention webinar have been answered below. If you would like any further information, please don't hesitate to contact us.

Q&A

Q. Can a Masterpiece policyholder pay for a HomeScan appraisal?

A. HomeScan is a free service offered to our Signature policyholders and it is not generally provided to Masterpiece clients. Should you specifically request a HomeScan inspection for a Masterpiece client, this is something we would consider based on the individual circumstances and the length of time the client has been with Chubb.  If we agreed to provide HomeScan for a Masterpiece client, we would not charge for this service.

Q. If the home appraisal is undertaken and the client requests a house sum insured below the amount determined by the appraisal, will Extended Replacement Cost still apply?

A. When the home appraisal is undertaken and the replacement cost is determined to be above the current house sum insured, we will automatically increase the sum insured to the replacement cost. If the client does not accept this increase and therefore is not prepared to insure their home for the correct value, we will remove the Extended Replacement Cost coverage and limit the cover for the house to the stated sum insured. At renewal, terms will only be provided based on the correct replacement cost for the house including any indexation factor, with Extended Replacement Cost applying.

Q. I have a client building a $10M home in a rural area who is currently insured with Chubb. Can we get a meeting to discuss what Chubb would need from a risk management perspective?

A. Yes, most certainly.  We encourage this type of engagement prior to larger homes being placed with Chubb. Simply reach out to your underwriter and they can co-ordinate with the Risk Consulting team. This may have to be conducted virtually, depending on the location.

Q. Is it possible to turn the main water off in a strata complex?

A. If an apartment has an individual water main meter, then yes you can turn the water supply off to the apartment. The water main meter is likely to be either within the apartment itself or in a common area where the water mains enters the building complex. If the building has one water main meter servicing all apartments, then you may not be able to isolate the water supply to the individual apartment. Another thing to consider is installing a water shut-off device to the hot water system if this is located inside the apartment. Some of the devices that are available on the market  are the Aquatrip Beaver and Plumbspec Mildred. These can be installed by a licensed plumber.

Q. Where can we find the little black book on Chubb's website?

A. You can find the relevant Little Black Book for your state by scrolling to the bottom of this page.

Q. With water damage representing the majority of Masterpiece claims, in an effort to reduce claims and improve loss ratio, would Chubb consider arranging a licensed plumber to attend and inspect/replace flexi-hoses say each 5 years? If this is not possible logisticallly, could the Insured arrange this and submit a reasonable invoice for Chubb to arrange payment?

A. No, we would not consider this as a general rule. It is the client's responsibility to mitigate loss to their home.  We simply provide the appropriate advice . We may consider providing a premium discount though if the client can clearly demonstrate that they have significantly reduced the risk of a water damage loss.

Q. Do sums insured need to be reviewed and/or an updated valuation undertaken when an area/state might go through a boom, there is a labour shortage or some materials might be hard to secure or have become more expensive due to shipping etc?

A. Chubb continues to monitor residential construction costs and undertakes regular reviews of construction cost movement. This information is used to develop and update our construction cost matrix which we use in the establishment of the building sum insured for the policy. In addition Chubb applies indexation to building sums insured annually and the rates used consider construction cost fluctuations over the 12 month period of time. A key benefit of the Masterpiece policy is Extended Replacement Cost protection for the home. This provides protection in the event of larger fluctuations in construction costs and ensures that the client will not be under insured in the event of a total loss to the home.

Q. What is the most interesting item of property that has been valued by the Risk Consultant team?

A. There have been a number of interesting items that we have had to value over the years, it's hard to limit to one so here are a few: bowling alleys, squash courts, gold class cinemas, a heritage listed pipe organ, a home observatory and a bath in the shape of a stiletto shoe.

Q. How are Signature policies determined?

A. A Signature policy is provided when the base premium for the policy is greater than $10k.

Q. Would a client move from a Masterpiece to a Signature product when the premium increases?

A. Yes, if the base premium exceeds $10k at renewal, the client will be upgraded to a Signature policy.

Q. When should the home appraisal take place for a Masterpiece policy?

A. We aim to conduct the home appraisal within 60 days from the closing being received, subject to us receiving contact details for the client and the client's availability.

Q. How do we arrange for the Aquatrip device to be installed for a client who wishes to take up the free offer?

A. Assuming this is a new Signature policy, simply send an email to your underwriter notiyfing us and provide us with the client’s name, address and contacts details.  We will then arrange for Aquatrip to make contact with the client.

Q. If we have an existing Chubb client or bind a new Masterpiece policy as opposed to a Signature policy, how can we obtain an Aquatrip device?

A. The Aquatrip water shut-off device can be sourced directly from Aquatrip. Aquatrip offers Chubb Insureds a 10% discount off the price of the product when purchased directly from them. Aquatrip has an Australia wide network of licensed plumbers who are authorised installers and who can be engaged to install the purchased device.