Flat-Living.co.uk Insurance How much is your property worth?


You might be surprised to hear that the Association of British Insurers (ABI) estimates 20% of UK homeowners have inadequate or no contents insurance.


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he block you live in is covered by your build- ings insurance policy but this only includes the fabric of the build-


ing and certain fixtures and fittings and is generally dependent on what is the responsibility for the RMc to insure, as determined by your lease. Anything that belongs to you personally will not be cov- ered under this policy and so you should ensure that you have ad- equate cover for your belongings should the worst happen. The block you live in is covered


by your buildings insurance policy but this only includes the fabric of the building and certain fixtures and fittings and is generally dependent on what is the responsibility for the RMC to insure, as determined by your lease. Anything that belongs to you personally will not be covered under this policy and so you should ensure that you have adequate cover for your belongings should the worst happen. Standard contents insurance usually includes: • Theft or attempted theft • Fire, explosion, lightning or earthquake • Leaking water from tanks or pipes • Storm and flood Cover can normally be extended to include accidental damage, which often commands an additional premium. If you are not sure what should be included under a contents policy, a good rule of thumb is to ask yourself, if you turned your flat upside down and shook it, what would fall out? For most of us this includes: • Furniture • Clothing • Money


Check your cover


holders where necessary. • Block/Buildings Insurance – this is mandatory, as part of residents’ mortgage agreements.


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• Employers Liability Insurance, which is available as an extension to a block policy - this is mandatory, as most blocks have either paid or unpaid employees.


• Terrorism Insurance - this is not mandatory. However, this cover is worth considering, because if a RMC director chooses not to obtain terrorism insurance, and the block is damaged/destroyed then potentially they could be sued. The RMC would be advised to obtain written confirmation from all shareholders that they are happy with this.


• Directors & Officers Insurance – this is not mandatory but why www.flat-living.co.uk


ere is a list of all the different types of insurance cov- er that your block and its residents should be aware of. You may not need all of them but RMcs should be familiar with these policies and what they cover and bring them to the attention of residents and share-


would an individual take on the role without protection of his/her personal assets?


• Directors & Officers Entity Insurance- Directors and Officers cover will protect individuals against error or omission, but if a claim is made against the RMC then Entity cover is required.


• Lift Inspection and Insurance - although the inspection is not categorically insurance, it is a package offered by brokers/insurers. The inspection is mandatory: any block that has employees who enter the premises, such as cleaners, gardeners etc is required by law to carry out an independent lift inspection (independent from the Company that does the maintenance).


• Home Emergency cover – this is not mandatory, but helps protect residents from additional damage potentially caused by ’out of hours’ problems.


• Flat Contents cover – this is not mandatory but certainly advisable. Lastly, for those blocks that have a property manager, the RMC is advised


to ensure that the company has Professional Indemnity insurance. For more information on insurance go to www.flat-living.co.uk


• Valuables such as jewellery, watches, art etc (which should be listed individually on your policy, together with their replacement value or proof of professional valuation)


• Electrical goods, such as televisions and computers Personal effects, such as DVD and CD collections, those rare dinky toys and anything else that has a monetary value. It will also cover soft furnishings, such as carpets and curtains


Your cover may not apply to belongings left in cars, hotels or motorhomes, so you should check with your insurer if this is likely to be an issue. Your cover may also be affected or even made null and void if you leave your home empty for a long period of time. Specific extensions available, that flat and apartment residents should consider are: • Contents in communal areas, such as bikes, buggies etc • Business equipment, for anyone who takes their work home with them


• Automatic cover for leaseholder’s improvements – for those who are partial to Clive Christian kitchens and Porcelanosa tiles.


• Cover for your liability as a leaseholder. Lloyds have arranged an exclusive policy via Flat Living offering an


extension specific to leaseholders that offers cover for your insurance excess in the event of a claim under your buildings insurance – imagine your property being damaged by water leaking from the flat above. This would not be your fault but your insurer would still expect you to pay the excess. Also, for those of you who have an increased buildings excess to keep your premium down, do you fancy finding yourself short when you least expect it... Generally fixtures and fittings such as kitchen cupboards and your


bathroom suite will be covered under the buildings insurance policy (subject to your lease). The ABI website explains that most policies will limit the maximum


amount of compensation your insurer will pay out on any one claim or against any one item. This means that anything beyond the maximum amount your insurer says it will pay won’t be covered, so it is vital to ensure that your sum insured is high enough to adequately cover you for the replacement value of your possessions.


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