Page 22 - CPB March 21st

Is the cash required to do up a property paid out of Shaw Insurance’s fees?
No. Shaw Insurance will arrange to borrow the cash required to do up a property as part of the mortgage on the property. Shaw Insurance Group’s property manager will estimate the costs prior to the establishment of the Care Property Bond and the property manager will supervise the builders. Unpaid interest costs will be incurred on the mortgage whilst the property is being renovated and these will be added to the original amount borrowed.
Why is there a reinsurance premium and is it paid out of Shaw Insurance’s fees?
In each case, Shaw Insurance will pay a reinsurance premium to provide security and ensure that, in the event of the customer living longer than five years, the care home fees can continue to be paid. If hypothetically Shaw Insurance were to decide not to obtain reinsurance, there would be a risk that the property would have to be re-mortgaged after five years, meaning that there would be less equity to return to the estate of the customer. Please note that Shaw Insurance will obtain this form of reinsurance in each case.
Shaw Insurance Group will arrange to borrow the cash required to pay the reinsurance premium as part of the mortgage.