Insurance for blocks of flats can be expensive, it is therefore important than policyholders understand how to get the best out of their cover. Here are our 5 top tips.
1) Claims resulting from leaking water pipes are one of the most common causes of damage in blocks of flats. The cost of repairs to pipes is generally not covered unless the cause is accidental, however in order for the cost of tracing the leak to be covered, the policy must have a “trace & access insurance” extension. It is important to check that this extension is in place and that the level of cover is adequate. It is not uncommon for trace in access claims in large blocks to exceed £15,000.
2) It is recommended that the buildings sum insured is on a “Day One” basis. This is an inflation provision that provides protection against under-insurance in the event of a claim. The sum insured is inflated by between 15% & 50% to protect against increasing costs during the course of a repair or in worst case scenarios, a complete rebuild of the property.
3) Insurance against terrorist acts is normally an extension of cover that can be purchased for an additional premium. Although the risk of a terrorist attack outside our major cities might be considered as minimal, if an event was to occur the parties involved in arranging the insurance cover could be held liable if inadequate cover is in place. Terrorism cover outside of major cities is relatively inexpensive.
4) It is important that the building sum insured is correct at the inception of the policy. We recommend that professional advice is taken to determine the right rebuilding cost. Further advice relating to rebuilding cost can be provided by surveyors Barrett Corp & Harrington.
5) We recommend that additional cover for loss adjuster’s fees is purchased. For a modest premium it is possible to cover the cost of such fees for material damage claims that exceed £5,000. Appointing a loss adjuster to act on your behalf will assist the claim process and ensure that repairs are completed as quickly as possible. Help is also provided with the sourcing of alternative accommodation if necessary.
For further advice about insurance for blocks of flats, contact Tony Gibbs on 01189 165485.