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Invasive Species G#1637 N#1555

By 27 August 2014November 19th, 2018Uncategorized

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Invasive Species

Invasive Species
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“Japanese Knotweed treatment, backed by Insurance Guarantee”

(1) Why has Japanese Knotweed become an issue with CML’s and banks?

  • The reasons are varied but for the answer you have to go back to September 2007 when the lending crisis became headline news.
  • Building Societies and banks had no choice with the restructuring of finance to seek only absolute clean loans without risk.
  • Japanese Knotweed infestations just happen to be within the category of perceived risks.
  • As a result mortgage lenders will expect the presence of Japanese Knotweed to be noted on a residential valuation report. RICS red book guidance requires the valuer to indicate the presence of “invasive vegetation.”

(2) What has occurred in the period between 2007/08 and 2012/13?

  • The RICS decided to consult with invasive weed experts and invited input from Japanese Knotweed companies throughout the UK.
  • This resulted in a published information paper early in 2012 and our understanding is that the RICS suggested a 6 year guarantee.
  • Individual companies including IVM made contact with CML’s and the insurance market in an attempt to resolve and obtain an insurance product.
  • We found the process very difficult, few CML’s replied and there was no consensus and the insurance costs being quoted were prohibitive.

(3) How do you define an expert? How could this issue be resolved?

  • The Property Care Association (PCA) has over 400 members and specialise in damp proof issues, timber preservation and other related areas of expertise including training and examinations, health and safety and continuous professional development.
  • To become a member you have to be audited, scrutinised and prove that your business has expertise, good financial standing, are using appropriately qualified staff, first class customer service and comply with all statutory regulations. When accredited you are also automatically part of the Government endorsed standards Trustmark Scheme.
  • Early in 2012 the PCA formed an Invasive Weed Control Group and at the end of 2012 there are 12 approved companies of which IVM are included and there was one application in process.

(4) Now the good news

  • Detailed discussion with both the RICS and CML’s have convinced the insurance underwriters that companies accredited to such high standards were of minimal risk and a ten year insured guarantee would be available providing and in support of a 10 year guarantee by the contracting company.
  • The policy has been available since November 2012 to PCA accredited members only.
  • The cost is only £79.50 per project up to a contract value of £7,500.00 and it is assignable. Insurance can be obtained up to the value of £150,000.00 maximum.

(5) Who offers the guarantee?

  • Guarantee Protection Insurance Ltd (GPI) who are an FSA approved and regulated insurance company.
  • UK domiciled.

Do we need an insured guarantee?

  • It is not compulsory and there is no blanket policy for lenders, and individual lenders will take into a range of factors as you know when considering funding approval.
  • It will definitely assist if Knotweed is the only issue.

Key benefits?

  • Removes one of the obstacles to obtain funding.
  • Assists future sales.
  • In simple terms (GPI) insures your contractors guarantee for 10 years.

What is the process?

  • The problem is surveyed and an eradication proposal is issued.
  • Upon issue of instruction the insurance premium is paid to IVM (advance payment).
  • IVM notifies (GPI) and pays the premium.
  • (GPI) issues a letter to the client / beneficiary confirming the policy will be issued when IVM has completed the treatment work and has issued the IVM 10 year warranty.
  • Contact IVM for a FREE Site Assessment, Free Advice and Free Proposal

© GBE NGS ASWS BrianMurphy aka BrianSpecMan
27th August 2014 – 18th November 2018

Invasive Species
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© GBE NGS ASWS BrianMurphy aka BrianSpecMan
27th August 2014 – 18th November 2018

Invasive Species
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NGS JARGON BUSTER

Initials Abbreviations and acronyms

  • CML
  • PCA
  • RICS
Words and phrases
  • backed by Insurance Guarantee
  • FSA approved and regulated
  • Guarantee Protection Insurance Ltd (GPI)
  • invasive vegetation
  • Invasive Weed Control Group
  • Japanese Knotweed
  • Japanese Knotweed infestations
  • Property Care Association (PCA)
  • Residential Valuation Report
  • RICS red book guidance
  • Trustmark Scheme
  • UK domiciled.

© GBE NGS ASWS BrianMurphy aka BrianSpecMan
27th August 2014 – 18th November 2018

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