Dear Members,
We would like to provide you with a further update on the progress following the fire at Churchdown Club.
Why has there not been any obvious progress?
This remains a significant point of frustration between Churchdown Club and the insurance company, as policy liability has still not been accepted.
Without acceptance of policy liability, Churchdown Club remains in a difficult position. We are unable to properly progress rebuilding works or make claims under areas of the policy such as business interruption, whilst at the same time we are being asked to undertake works and provide information to assist the insurer’s investigations.
Our insurers, through Eaton Gate, have issued a number of requests and directions to Churchdown Club despite liability not yet being accepted.
One example is the appointment of a second forensic Fire Investigator. They attended Churchdown Club on 31st July and spent nearly three hours on site with Committee members, reviewing and requesting video and photographic evidence.
On 7th August, we were contacted by the insurers and asked to instruct an asbestos removal company to remove asbestos-containing materials from two specific areas. This was required to allow the Fire Investigator to carry out further forensic investigation and examine components that may potentially have contributed to the cause of the fire.
Churchdown Club challenged this request.
Our position was straightforward: without acceptance of policy liability, we did not believe it was reasonable for Churchdown Club to spend its own money facilitating an investigation being undertaken for the benefit of the insurer.
We therefore told the insurers that, if they wished to proceed with their investigation before accepting policy liability, they would need to instruct and pay for the necessary asbestos removal themselves.
The insurers have now agreed to do this.
Next Steps
We are currently awaiting a confirmed date for the Fire Investigator to return to site. This was chased again on the morning of 17th August.
A robust conversation was also held with our brokers regarding the lack of progress. We are now approximately eight weeks into the claim, with no significant progress towards acceptance of policy liability or the commencement of the rebuilding process.
We have made it clear that this situation cannot continue indefinitely.
Our brokers have been asked to relay our concerns formally to the insurer, and we have given the insurer until 21st August to provide a clear position regarding acceptance of policy liability.
If we do not receive a satisfactory response by that date, Churchdown Club intends to lodge a formal complaint regarding the handling and progress of the claim.
What has been happening?
Although there has been little visible progress from a member’s perspective, there has actually been a considerable amount of work taking place behind the scenes.
There have been meetings on site with Fire Investigators and surveyors, along with ongoing discussions involving the Committee, brokers, loss adjusters and other professional advisers.
The reason for the second Fire Investigator’s involvement has already been explained.
The surveyor’s role was different. They have been asked to establish the rebuild cost for the entire Club, which will help determine whether the insurers believe Churchdown Club is underinsured against the £1.4 million valuation currently in place.
This meeting was particularly significant because we were able to go through historic documentation relating to the Club and establish that there are specific areas of land and structures which, although connected with or historically owned by Churchdown Club, may not ultimately be the responsibility of Churchdown Club.
We provided a number of examples, including the following.
The Recreation Ground
Prior to 1958, Churchdown Club, Churchdown Parish Council and St Andrew’s Church collectively owned and had responsibilities relating to the recreation ground to the rear of Churchdown Club.
In 1958, Churchdown Club relinquished its ownership and responsibility for the relevant land, subject to arrangements concerning the maintenance of the boundary fence and hedgerow by the Parish Council.
Interestingly, the historic arrangements also appear to reserve rights for Churchdown Club to hold events on the recreation ground, such as a fete.
The Road and Retaining Wall
The road alongside the Club was historically a pathway. Churchdown Club subsequently relinquished land to facilitate the construction of the road and retaining wall, providing access to a public car park.
As part of those historic arrangements, Churchdown Club retained its own car parking provision, while responsibility for the retaining wall was allocated to the Parish Council.
These are just two examples of a number of historic matters that have been brought to the surveyor’s attention.
Why is this important?
Because the insurer’s assessment of the total rebuild cost needs to take account of what Churchdown Club is actually responsible for rebuilding.
If certain land, structures or works are not the responsibility of Churchdown Club, then those costs should not necessarily form part of the Club’s own rebuild requirement.
This may therefore help to mitigate the concern regarding any potential underinsurance against the £1.4 million valuation.
The surveyor will ultimately need to consider the historic documentation and determine the appropriate position.
Revenue – the impact on the Club
There has, of course, been a significant loss of revenue following the fire.
This is where the many generous donations we have received have been particularly important. They are helping to protect the future of Churchdown Club while we work through the insurance process.
With the loss of the skittle alley and function room, our revenue is currently approximately 16.5% lower.
Although we have business interruption insurance, we are currently unable to make a claim under that section because policy liability has not yet been accepted.
In the meantime, we have to adapt.
We intend to move certain functions and activities into other areas of the Club. For example, events such as paint parties, folk events and other functions may need to take place in the lounge rather than the function room.
This may mean that your favourite seat isn’t always available or that the Club operates slightly differently from before.
But our priority has to be ensuring that Churchdown Club has a future.
We need to adapt as an organisation and, most importantly, as a community.
What can members do?
Firstly, thank you.
The donations we have received have been incredibly generous and will be invaluable in protecting and rebuilding the future of Churchdown Club.
However, there is another simple way members can help.
Churchdown Club generates the vast majority of its revenue at weekends and through functions and events.
Historically, midweek income has relied heavily on skittles and functions. Sadly, those revenue streams are currently unavailable.
If you are able to come up to the Club during the week for a drink, it really would make a difference.
It doesn’t matter whether you have a soft drink, a pint or a glass of wine.
Come up, say hello, bring a friend and support your Club.
If you let us know that you are visiting on a night when you wouldn’t normally come up, it will genuinely help us understand the difference members can make during this difficult period.
Every pound of revenue generated helps.
Do we have professional support?
Yes.
Churchdown Club is not dealing with this claim alone.
When our insurance policy was taken out, we used the specialist club insurance broker ClubInsure. As part of the policy arrangements, we also have access to additional support, including a dedicated claims team who liaise with the insurers on behalf of Churchdown Club.
Patrick is leading the claim on behalf of Churchdown Club and is dealing directly with the broker team.
Patrick speaks with the broker team on a weekly basis, and they then liaise with the appointed loss adjuster for the insurance company.
This ensures that the Committee has professional support throughout the process and that the Club’s position, circumstances and interests are being communicated directly to those dealing with the claim.
We also have access to specialist claims professionals, including:
Major & Complex Loss Adjuster
Technical Claims Director
These professionals are involved in supporting the handling of the claim and providing specialist guidance as the process continues. This enable us to progress the claim without appointing a 3rd party loss assessor who would take 10-20% of our total claim. With Patrick’s manhours instructing the team from ClubInsure we believe we have a strong team to represent Churchdown Club.
Finally
We understand that members are frustrated.
We are frustrated too.
We want the Club rebuilt, reopened and back to operating normally as quickly as possible.
The Committee has not been sitting back waiting for things to happen. We have been actively challenging the insurer, providing historic documentation, attending investigations and meetings, dealing with professional advisers and doing everything we reasonably can to move the claim forward.
The biggest obstacle remains acceptance of policy liability.
We have now made our position clear to the insurer and have requested a response by 21st August.
We will continue to keep members informed and, when there is meaningful news, you will hear it from us directly.
In the meantime, please continue to support Churchdown Club where you can.
Churchdown Club is a community.
And right now, the community is what will get us through this.