Business burnt down , no insurance

[alexandra123]

Hello Guys,

I am wondering if anyone can help offer some advice.

A friend of mine has their own business. It went up on fire and their premises got destroyed. They lost everything. Unfortunately when times got hard they cancelled their insurance.

At the moment the cost to repair is in the thousands.

Is their any department out their that can help them get back on their feet or support them financially in some way ?

 

[moneybox]

So sorry to read this, what a terrible thing to happen to your friend. I Don't think there are departments as such that can help out. In the case of homes that get burnt down without insurance it's usually local charities and people organising fundraising events that step in. Other ideas might be to get a local paper to run an article on the devastation the fire has caused and maybe people will come forward to offer their services to help rebuilt or to hand in donated equipment.

 

[thedaddyman]

he could go to his local enterprise office to see if they can assist in anyway, depending on the nature of the business, some have small office units to rent at reasonable rent, they could also offer grant money for the purchase of certain equipment although the fact that he had no insurance in place will be factored into their decision making.

 

[Ravima]

This is so sad. Fire insurance is NOT expensive.

However, they now find them selves where they are. Any idea of what caused the fire - could they have any possible claim against another party?

 

[moneybox]

This is so sad. Fire insurance is NOT expensive.

Hindsight is a great thing. There were many businesses left severely struggling over the past number of years, it's quite possible the money simple wasn't there to pay the insurance. I hope this person gets the help he needs to rebuilt his business again.

 

[MrEarl]

Not to wish ill on anyone, but they should have had insurance.

In terms of what to do next, perhaps rent a suitable premises and run their business from the new location (possibly leasing equipment, as necessary).

Do they own the actual property and if so, is it debt free ? If so, there may be a chance of getting someone to lend money to reinstate the property, in return for security over the site and new building to be constructed thereon. That said, if the business was struggling, it may not qualify for a loan but a deal with a private investor might be achievable or else, a sale and leaseback (post reconstruction) type arrangement.