ABACUS Exposed April 2023

Introduction

A message from Richard Burgess

Welcome to April’s issue the ABACUS Exposed, we would like to thank Steve Keepin of Edison Ford for being our Broker Spotlight this month.

This month’s edition of our ABACUS Exposed is packed full of useful information and interesting interviews. We shed some light on the return of our Residential Let legal Expenses and Optional Rent Protection policies, we talk to Steve Keepin of Edison Ford and our Account’s Manager Nicola Foxwell, and we share some useful news articles and information on how video marketing can help your brokerage.

We are now approaching the end of April and at the beginning of May we and perhaps many of you will be attending the BIBA Conference in Manchester. We have already spoken to many of you about the event as we will be available throughout the few days to get in contact with you, either via our stand (we are located at B75) or via an appointment. If you would like to make an appointment with us please feel free to get into contact with myself or Robin and we would be delighted to book some time in to see you there.

As always, we would like to thank you all for your continued support of us here at ABACUS. We hope that you enjoy reading this edition of Exposed and if you have any comments or need to get into contact with us, all of our information is listed on page 10.

Richard Burgess ACIEH, Cert CII, MCIM, MICA CEO

richardb@sabacus.co.uk

07725 365447

Product Updates

Residential Let Legal Expenses & Optional Rent Protection

The ABACUS team are pleased to announce Rent Protection Insurance is back and can be quoted online now as part of our Landlords Legal Expenses and Rent Protection Insurance policy which is managed and provided by Arc Legal Assistance Limited and underwritten by AmTrust Europe Limited.

Available stand-alone or as an add-on to Residential Let Property policies.

What is Residential Let Legal Expenses and Optional Rent Protection Insurance?

In the event your client should be involved in a property dispute or debt recovery (relating to the property insured) then the cost, time, and effort of pursuing any legal action against a third party would probably result in a financial loss to the client as well as being very time consuming. Legal protection cover will provide the client with the security and peace of mind should it ever be necessary for the client to take such legal action.

Landlords Legal Expenses and Rent Protection Insurance provides insurance to cover:

l Tenant Mediation and Eviction: Mediation Adviser Costs: £330 –Eviction Adviser Costs: £1,250

l £50,000 for claims under any other section of cover

l For claims under the Rent Protection section of cover: Maximum Monthly Rent: £1,500 – Maximum Rent

Payable: 6 Months for advisers’ costs for certain types of legal action(s) and rent.

What can we cover?

Target Market

Residential Property Owners with:

l Minimum 6-month lease agreement

l Long term leaseholders

l Any tenant type

l All residential property types including flats

It is not targeted for:

l Commercial properties

l Any existing Legal Disputes

l Unoccupied properties

Feel free to contact our New Business Team who will be happy to help with any queries or questions you may have.

If you would like to review the IPID and Policy Wording these can be found under the Policy Documentation section on our website.

News round up

Property matters in the UK are often in the headlines. Whether you are a homeowner or a landlord, it helps to stay abreast of the news and keep one step ahead of those changes that may affect your current – or planned – investments. Read on for our news round-up where we look over some of those headlines...

Relief for homebuyers as bill slashing Stamp Duty will become law

A law significantly reducing homebuyers’ liability for Stamp Duty has received its final reading before it is granted Royal Assent, reported the Mail Online recently Titled the Stamp Duty Land Tax (Temporary Relief) Bill, the enacted law will increase the threshold at which Stamp Duty becomes payable from the current £125,000 to £250,000. Only the balance of the purchase in excess of £250,000 becomes liable for Stamp Duty (at a rate of 5% for sums between £250,000 and £925,000; 10% for any sum between £925,000 and £1.5 million; and 15% on the balance of any sum above £1.5 million).

First-time buyers qualify for even more attractive relief – the first £425,000 of their purchase of a home will now be zero-rated for Stamp Duty (up from the previous threshold of £300,000).

First-time buyers will also qualify for such tax relief on the purchase of a home up to £625,000 in value – up from the previous limit of £500,000.

The measures introduced by this new legislation will remain in place until at least the end of March 2025.

By encouraging greater activity in the housing market – principally by granting buyers savings that can be used instead towards a deposit – the government envisages a significant fillip for this sector of the economy.

The principle of relaxing Stamp Duty liabilities is nothing new, of course. A slightly more favourable – but ultimately successful – Stamp Duty Tax holiday was introduced for the duration of the Covid pandemic from July 2020 until September 2021.

Capital gains tax allowance will be cut

In a review of those developments to which landlords should pay close attention in 2023, Which? magazine identified a hike in the Capital Gains Tax (CGT) thresholds as a notable milestone.

From the 6th of April 2023, the tax-free allowance on profits from the sale of investment property will be reduced from its current £12,300 to just £6,000.

In 2024 the allowance will be halved once again so that sellers can make only £3,000 in profit before incurring liability for CGT.

News round up

Government energy efficiency plans doomed to failure warn landlords

In a recent press release, the National Residential Landlords Association (NRLA) took the government to task for what it perceives as a lack of clarity about its energy efficiency standards.

The landlords’ pressure group reminds readers that two years have elapsed since the end of the official consultation process to discuss the government’s plans for imposing stricter energy efficiency targets within the private rented sector – with milestone dates for the introduction of new targets arising in 2025 and again in 2028.

According to the official targets currently set out by the government, in 2025 all new tenancies granted by private sector landlords must be for property that has achieved a minimum C-rated Energy Performance Certificate (EPC).

By 2028, it is the current intention to extend those standards to all tenancies including existing tenancies.

A lack of clarity and continued consultation with private sector landlords about the implementation of these targets means that any chance of government success in achieving its goals is doomed to failure or “dead in the water”, says the NRLA

UK property market weakest since 2010 as uncertainty weighs: RICS

The Royal Institution of Chartered Surveyors (RICS) adopted a pessimistic stance on prospects for the UK property market according to a story by Reuters recently

Noting a slump in December’s average house prices – the biggest such fall since October 2010 – RICS predicted a sharper than expected decline in a housing market marked by steadily rising borrowing costs and uncertainty about the extent of any recession in the year ahead.

RICS noted that house prices have been falling across the whole of the UK, but that East Anglia and the Southeast of England in particular had seen the biggest drop in prices.

Landlord insurance FAQs

Figures reveal that there are nearly 2.6m private landlords in the UK – meaning there are potentially great opportunities for providing your clients with landlord insurance cover.

Here are some frequently asked questions (FAQs) your customers may ask about the product …

What does landlord insurance cover?

As with practically any kind of general insurance, landlord insurance policies may differ quite widely from one insurer to another. You need to look carefully at the detail of any particular policy for its match to your needs and expectations.

For all the differences, though, the typical landlord insurance cover addresses three main areas of risk:

Buildings insurance

l this covers the structural integrity of the building itself, protecting it against such potentially serious risks as fire, flooding, escape of water, storm damage, impacts, and theft;

Contents insurance

l any contents owned by the landlord and kept in the let property may be covered by an element of contents insurance;

Landlord liability insurance

l any landlord owes a duty of care to his or her tenants;

l if a tenant, one of their visitors, a neighbour, or a member of the public is injured or has their property damaged, they may hold the landlord in breach of that duty of care and sue for damages;

l landlord liability insurance is designed to meet the costs of such claims.

Some, but by no means all, landlord insurance policies may include – or may offer as optional extras – cover against such risks as subsidence, loss of rental income, malicious damage, and trace and access cover.

I’m only letting out part of my house. Why can’t I keep using my existing owner-occupier property insurance?

By definition, insurance is all about the management of risk. Once you let your house – or even part of it – to tenants, the risks are different from those when you and your family are the sole owneroccupiers.

Because those risks are different, you need specialist landlord insurance to safeguard against them.

If you have tenants in any part of your house, you may find that any subsequent claim for loss or damage is rejected by your insurer if you have only regular owner-occupier’s home insurance.

What’s the link between landlord insurance and mortgages?

If you are buying the property with the help of a mortgage, the lender distinguishes clearly between a residential home mortgage for prospective owner-occupiers and a buy to let mortgage for landlords.

Just as mortgage lenders recognise the essential differences in the way the property is to be used, so, too, do insurers – home insurance for owneroccupiers and buy to let insurance for landlords.

Your mortgage lender may also make it a condition of your mortgage agreement that you have buy to let insurance in place at all times, in order to protect both your financial interests in the property.

Do your policies include public liability injury to guests and third parties?

Our policies include up to £5m public liability for guests and third parties.

ABACUS Out & About

It is almost impossible to comprehend the fact that three months have passed since we welcomed in the New Year, but here we are in April, and although we are still shivering and layering up here in Southend, the ABACUS team have been keeping warm in our office, working diligently to deal with all different types of broker enquiries. Robin has been travelling as usual to a few nice places over the past couple of months, read on to find out more about his visits…

February Miles & Smiles

Number of Brokers Seen – 44

Number of Miles Travelled – 2,447

In February Robin made 44 visits; starting off in by visiting one of our brokers in Blackburn, where they discussed their growing need for unoccupied property insurance quotes and were pleased to report that our team have been providing a good level of service that they appreciate which Robin was delighted to hear. During the second week of February, Robin was travelling to places such as Coxhoe, Consett and County Durham. Robin was happy to report that some brokers he had spoken to in the week were pleased with our Commercial property insurance and the flexibility of the rating systems, which was making it easier for them to gain insurance quotes for clients with non-standard properties. One of the highlights for Robin in February was going to watch football at Meadow Lane Stadium in Nottingham, to see Notts County F. C play with brokers from Appletons Insurance. Robin was not so happy with the football result though, a 4-0 smashing over his beloved Southend United.

March Miles & Smiles

Number of Brokers Seen – 36

Number of Miles Travelled – 2,526

March brought about national events such as St Patricks Day and Mother’s Day, and here in Southend we were all wishing to see just a peak of the sun that the onset of spring often brings… we were all sorely disappointed… but it did not harm our spirits here in the office, and Robin was still bouncing back and forth extending greetings to brokers far and wide. Starting of with a broker nearby in Colchester, then travelling to Watford and Leeds. When he visited the broker in Leeds he was greeted with a hefty amount of snow, which is always a novelty! He went to visit a broker in Blackpool and saw Blackpool Tower on the drive there and was happy to support in product refreshers and discussions of risk placements whilst visiting the brokers there. The highlight of this month was taking a handful of brokers to Chepstow Races, in which Robin may have only won/lost a little bit of money but was able to discuss the return of our Residential Let Legal Expenses and Optional Rent Protection products and provide support and a personal touch to some of our broker friends, which is always a top priority for the team here at ABACUS.

We are ready and waiting

If you would like Robin to hold a meeting with you (be that in person or virtual) to discuss your agency with ABACUS, please let us know. Email us at agency@sabacus.co.uk or call us on 01702 606 312.

Product Exposed Residential Property Owners Insurance

As you may be aware, our Residential Property Owners (RPO) insurance is one of our most popular products. Not only is it easy for you to get an immediate quote online from our panel of specialist insurers, but our RPO insurance offers what we believe is very cost-effective cover and additional benefits not always available with some other providers (such as Trace & Access cover and malicious damage by tenant as standard).

Here is a quick refresh of our ABACUS RPO insurance … Who is the product for?

This product is for landlords who own and let out a residential property.

What does it cover?

Our policies cover all the standard risks associated with landlords insurance including many elements of protection which some other let property insurance policies from other providers exclude (e.g. subsidence and communal comments as standard).

Key features of our Residential Property Owners products

l Up to 25% commission.

l All property and tenant types covered, no tenant restrictions.

l Communal contents, subsidence, Trace & Access, and malicious damage by tenant typically all included as standard.

l Loss of rent included (up to 20% of building sum insured).

l Property owners’ liability insurance up to £5million.

l Contents only option.

l Portfolio risks catered for.

l Immediate online access to our panel of insurers.

l Policy documentation available immediately online.

l Easy to use referral system online for “that difficult quotation”.

Why ABACUS RPO?

l Cost-effective, flexible cover to meet your customers’ own unique needs..

l Our policies cover all the standard risks associated with landlords insurance including many elements of protection which some let property insurance policies from other providers exclude.

l Our system gives you:

l instant online access to our panel of insurers, with immediate quotes.

l access to all your customers’ documentation online

l the ability to request cancellations and confirm renewals online.

l If a quotation “refers”, we will come back to you quickly with our Terms.

l Policy documentation available immediately online.

l Help and support readily available from our Sales & Marketing Team.

Customer + Broker + Residential property owners insurance = ABACUS

At ABACUS we are committed to our Broker Members by providing ongoing marketing support and help.

If you have any questions or queries in relation to this or any other product, or with getting a property insurance quote, please do not hesitate to contact our Sales & Marketing Team on 01702 606 312. They will be more than happy to help.

What is short form video marketing and how can it help your brokerage?

Video marketing is still a huge potential growth market for insurance brokers and, interestingly, it is no longer about long form video.

For those brokers that can take advantage of this, there is still time for first mover advantage on some digital platforms – plus you will not be competing for eyeballs in the same way you do with other forms of marketing.

So, while we are going to talk about Lives, Reels and TikTok, we are going to talk about platforms you already know too. There is a huge advantage for someone who can step up and just produce content quickly and easily.

You no longer have to produce 5- or 10-min video content. Let’s be honest, that’s what probably stopped you in the past.

Sites such as Facebook, Instagram, TikTok and others are all now suggesting users produce 60 -120 second videos and share them.

This can easily be done by using your smartphone. Record a video that covers one point, tip, trick or useful piece of information.

Then upload it. Simple.

Here are some ideas to help you get started.

Setup

You can simply use your phone.

Make sure you have a non-busy background or background noise.

If you are doing your videos in your office, make sure you have good, natural light and maybe invest in a lapel mic to improve sound recording quality. The Rode Lapel Microphone is a good option.

If you want to use your PC, then you can use a Webcam (remember those?). The Logitech C920 is a great camera to use.

You can record and save these videos before uploading if you want to - or simply upload them. If you want to edit them, you can use your computer’s video software. On a Mac this would be iMovie, or you could use something like Canva which has a video editing solution.

Content ideas

For content ideas there are many different things you can use in short term video form.

Whatever content you create though, the focus is to be informative and entertaining.

Short form video topics could be about your:

l business

l products

l service.

But try not to cram too much into each video. 60-120 seconds will be enough to include one topic and a single point on that topic.

In terms of your products, this could be FAQs related. In fact, you could create a bunch of FAQs related videos. Or a group of videos about one of your products.

Given a bit of thinking time, you can probably map out a lot of content ideas in a short period of time.

When clients’ ask you or your team a question, make a note –this could be a future video.

You don’t need to overthink it. By having a simple plan and an easy way to record content, this will help you create content consistently over time.

One thing we also would suggest you do, is to include subtitles. Some people will watch your videos at work or in a quiet environment, so subtitles will be another way to help you engage.

Platforms to explore

Here are several platforms that accept and actively request people to create short form content:

l Facebook Reels

l Instagram Reels

l TikTok

l LinkedIn

l YouTube Shorts.

These channels also can publish live on a platform – this simply means publishing on the platform as you speak. Like Live TV. This might be an option for you and one well worth exploring. Again, try to keep the content focused, without distraction, onpoint and short.

Whatever platform you use and whatever schedule you choose, try to stick to it. If you are going to post once a week, ensure you meet that commitment. Or pre-record so you can cover any holiday or illness periods. For example, if you are going live every Wednesday at 10am, make sure you have it booked into your diary as a meeting so you can do the short video without interruption. Viewers like consistency.

Live and short form video can reach a huge number of people quickly.

Good luck!

Broker Spotlight Steve Keepin – Edison Ford

1. Tell us a bit about your brokerage, and the origins of the company.

Our brokerage, Edison Ford, was born August 1992 and it seems just like yesterday. We started with no customers and a determination to succeed. Thirty plus years we are still hungry for business and success.

2. What makes your brokerage unique? Our original aim was to be all things to all people and if you needed any insurance for any scenario we were your first point of call. Our brokerage feels unique in that we are a one office situation with no formal ties to a network. It is always our proud boast and aim to remain truly independent without anyone telling us what to do. I do notice that the small brokerage of one site only is a vanishing beast which is a great shame for the industry, big is not always best.

3. What does a typical week look like for you?

A typical week starts to a frenetic Monday and then suddenly it is Friday. We stopped working weekends many years ago and feel it was the best decision we ever made, concentrating our efforts to a five day week.

4. What are the two best pieces of advice you have received in your years of experience working in the insurance industry? ?

The first piece of advice I was given was by my first employer Cornhill Insurance. They told me to be the best and strive to achieve goals set by yourself and the boss. As this was over forty years ago the advice was good and even relevant today. The second piece of advice I was given is to not suffer fools gladly. With insurance it is very

easy to encounter people in the industry that could be considered foolish. As an independent broker it is usually easy to move on from providers who do not meet with our expectations.

5. What, in your opinion, is the biggest reason you continue to work with us here at ABACUS?

We have worked with ABACUS for many a year. The camaraderie and willingness to support us as brokers is second to none. Working with ABACUS is a pleasure and not a chore like it can be working with some of the large insurers.

6. Your main office is based near Bristol; If someone were to go and visit, what would you recommend they go and see or do first?

Our office, based near Bristol, is near to the water front of Bristol Harbour. This is well worth a visit and time should be taken to explore the water, surrounding shops, and restaurants. Bristol is truly a super place and needs a visit to explore this maritime based city.

7. What is your go-to holiday destination?

My go to destination is anywhere on a canal. I was recently lucky enough to buy a narrow boat and you cannot beat exploring the UK’s canals and rivers to appreciate the beauty of the scenery from a boat.

8. If you had to choose an animal to represent your brokerage, what animal would you choose and why?

If I had to choose an animal that in my opinion represents our brokerage it would be a Golden Labrador. A Labrador is loved by most people and can usually be relied upon to show devotion and kindness, I would like to think our clients think of us in this way.

9. Do you have any highlights from any day you have spent out with ABACUS?

I recently enjoyed a day at the races with ABACUS, as usual their hospitality was legendary. It was great to catch up with Robin and meet Jasmine. We have always enjoyed the willingness of ABACUS to say yes and fully expect to stay with them for the next 30 years.

Meet the Team

Nicola Foxwell

Accounts Manager

1. Hi Team member, introduce yourself!

I’m the Accounts Manager.

2. What is your role within ABACUS?

I have been working for the company for 18 years in our Accounts Department. As the Accounts Manager, I oversee the day to day running of our Accounts Department and ensure the correct accounting methods and practices are adhered to and our deadlines are met. I monitor and analyse our accounting data to produce our required monthly and annual reports.

3. What do you like about working at ABACUS, and what do you think ABACUS does the best?

I like the staff and the atmosphere we have at work. We all motivate each other and work well as a team. I feel we are all very well supported by our directors and colleagues.

4. What are the values that drive you?

Respect others (colleagues and customers) and make this a great place to work. Sharing enthusiasm goes a long way.

Contact Information

Accounts

Tel: 01702 606 320

Email: accounts@sabacus.co.uk

Agency & Marketing

Tel: 01702 606 312

Email: agency@sabacus.co.uk

5. What do you enjoy doing when you are not working? Walking my miniature dachshund and spending time with family and friends.

6. Who inspires you? My parents. They always seem to have the best advice (well, most of the time!)

7. What is something you are proud of? My team and the way we work together

8. What is your most-used productivity hack? Being approachable. I like that my team feel they can come to me anytime.

9. What three items would you take with you to a deserted island? I would take a pillow, water and lip balm.

10. Tell us about a memorable moment with ABACUS. t has to be the time we had a charity day in our old office and we held a space hopper race. It was hilarious!

Agency & Marketing Are Here To Help!

Our Agency & Marketing team are here to help you with all Agency queries!

If you would like to discuss your ABACUS agency over many of the video platforms, or via the telephone, Robin & Jecelda are available to speak to you on 01702 606 312, or email us at agency@sabacus.co.uk

We look forward to hearing from you!

Claims Tel: 01702 606 311

Email: claims@sabacus.co.uk

Existing Business

Tel: 01702 606 306

Email: existingbusiness@sabacus.co.uk

New Business Team

Tel: 01702 606 304

Email: newbusiness@sabacus.co.uk

Portfolios

Tel: 01702 880802

Email: portfolios@sabacus.co.uk

ABACUS Baxter Building 80 Baxter Avenue Southend on Sea

Essex SS2 6HZ

Tel: 01702 606 300

Email: info@sabacus.co.uk

Fax: 01702 606 369

Alan Blunden & Co Limited is authorised and regulated by the Financial Conduct Authority. Full details of FCA authorisations can be found at www.fsa.gov.uk/register

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