Advice INSURANCE


Does your sum insuredreflect residents’ home improvements?


whATShOULDyOUR SUmINSURED INCLUDE?


Apartfrom theobvious cost of rebuilding your property to its currentcondition andrepair, it also needstocover these


points Architects, surveyorsandother professional fees In theevent ofa completeloss, theservicesofarchitects, surveyorsandotherprofessionalswillbe requiredtoensuretherebuiltproperty complieswith legislationandregulation.


PlanningpermissionAlthoughyour property iscurrently “insitu,” didyou knowthat ifacompleteloss occurred, planningapprovalwouldneedtobe sought to comply with latest planning legislation?


BuildingRegulations Shouldyour buildingburn to theground,notonly wouldyourequire it tobebuilt to the samespecification, asexisting,but it wouldalsohaveto conformtocurrent localandnational BuildingRegulations.


GreenerHomesDoesyourcurrent insurancevaluationincludethe latest requirementstocomplywith “GreenerHomes” in terms ofenergy conservation?This isaboutreducing CO2


omissionsandbuildingenergy


performance in terms ofsolargains, heating, ventilating, insulationand air tightness. Afteracompleteloss youwouldberequiredtocomplywith currentregulations.


Demolitionanddebris removal costs Thesealsoneedtobeincluded in thesuminsuredandcostscanbe substantial followingalargeclaim.


suitable index, indexation should not be relied on formorethanafew years. TheRICS Guidance Note ReinstatementCostAssessment and Insurance Claims states that “Surveyors maywishtoconsiderthatthe Reinstatement Cost Assessment is undertaken fromfirst principles everythree yearsoratlesserperiods dependent on the circumstances”.


ThecosTofimprovemenTs One ofCHUResidentsline’smain concerns is theproblemof overlookingthe valueof lesseesimprovements, fixturesand fittings. Most leases require the building suminsured to be equaltothe fullreinstatement cost and to include specificitemssuch as kitchens, bathrooms, fittedfurniture andthe like contained within individual flats.The quality andcost of thesefixturesmayvaryfrom flat to flat. With more flat owners choosing to improveratherthanmove, canyou be sure that the value you have placed on your block is adequate, withoutviewing andvaluing all your flat owners’ improvements? Areyou responsible fordecidingthe sum


insuredfor your blockwhenyoumaynot have beeninsidemany of the flats? Recentlywe weremadeawareofaclaimforaflatowner whohad sufferedconsiderablefire damage in


26


ablock thatwasonly5years old. Following investigation it turned outthatthe flatowner had £50,000worthof homenetworking, wiring andcabling installedfor hisIT, Hi-Fi, speakers anddigital equipmentwhich the RMCwasunawareof. Arecentsurveyshowedinexcessof77% of allthe building valuations handledbyBarrett


Theuseof different indices... could quicklyleadto discrepancies


Corp and Harrington Ltd (BCH), involving billions of pounds worthofproperty, were underinsured.Thisoutlinesthe danger of not having reinstatementcostsassessed, with regularupdatesbyacompany that specialises in this area. Remember that insurers leavethe


responsibility to provide a“correctand current” rebuilding cost with thepolicyholder.●


BelindaThorpe Commercial Director, CHUResidentsline


VATThesuminsuredonblocksof flatsdoesn’tneedto includeVAT.onits rebuildcost.However itshould allow forVAT.onthecost ofdemolitionand fees.Did youknowthatifyousuffered amajor, butpartial lossandinsurers electedto repair rather thanrebuild, thatVATwouldbeapplicable to the total repair cost?Wewouldallagree that20%is quiteachunkof yoursum insured.


CHUUnderwritingAgenciesPty Ltd (CHU) hasbeenamarketleadingforce for insuranceproducts for flats and apartments over thelast30years throughoutAustralia,theUSAand in the United ArabEmirates.CHU,which is part of theQBEInsuranceGroup has recently acquiredResidentsline to bringtheir innovative insurance solutions for the flatsmarket to theUK


Autumn2011 Flat Living


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64