Finding the right products and services for experienced property developers can prove more complicated that it first appears. With a wealth of specialised finance available, it is always important to know what will suit your client, and which clients will suit you.

Guiding us through the intricacies of catering for more prolific developers, Michael Magee, Owner of commercial and development lenderDevelopment Finance Bank, uncovers his top 10 tips…

Tip 7: Insurance

When structuring finance for a developer, it is wise to talk to them about building insurance. All lenders require that an existing building must be insured by its owner against fire and all comprehensive perils. Surveyors may also require insurance protecting against additional dangers. The sum insured is set following a valuer’s suggestion and will be under the joint names of the legal owners. The lender’s interest needs to be noted on the policy as mortgagees. 

The developer will also require insurances in relation to any building works - these will need to be in place prior to drawdowns - such as a contractor’s “All Risks” policy, which covers the contractor’s building works, and, of course, Professional Indemnity cover for both the architect and engineer. Talking to the developer about these requirements will save time and potentially present you with an opportunity to earn a commission from the insurance provider.