insurance
Most of us payour insuranceand hope nevertomakeamajor
claim. In this article, Dylanallen explains what to do if the
worstcasescenario becomes a reality
Take the out of
insurancefor theblockstheymanage, very few expect to experience amajor loss. Sowhenan incident suchas alarge firedoesoccur,itcan have devastatingeffectsontheresidentsand canbeanextremely challengingandpotentially stressful timefor theRMC. Immediateattention needstobegiven to
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contacting theemergency services, ensuring the safety of the residents and their visitors, shutting downutility services andthen instructinganappropriate contractor to carry outanyemergencyworks in order tomake the building safe and secure.However, once you
avoiDthepitfalls…
nDonotsitonpaperwork andcauseunnecessary delayswith the claim.
navoidcausing delayswith the repair/ reinstatement process, whichcouldgiveinsurers groundsforreducingaloss of rent claim.
nMostresidential propertyowner’spolicies extendto coveralternative accommodationfor theresidents.Ensure that the alternative accommodationis appropriateandrelative to the sizeofaccommodation thathasbeendamaged. insurerswill look to
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theadministrationand presentationof claims informationhoweverare normallyexcludedsoavoid rackinguplargecostsin this area.
Ensure that alternative
accommodation is appropriate
excludeadditional costsif theyare consideredtobe excessive.
nprofessional fees aregenerally covered with the insurer’sprior
consent.Costs forclaims preparation, including
nnecessaryemergency worksandimmediate mitigationmeasuresto stopongoingdamage willbepickedupbythe
policy.additional costs foravoidingafuture losshowever,suchas commissioningadditional securityonabuildingthat hasbecomeunoccupied becauseof the loss,in mostcaseswillnotbe covered.
Whilemost ResidentManagement Companies(RMCs)andtheir PropertyManagingAgents (PMAs) diligentlyarrange appropriate
yourclaim pain
have dealtwiththeimmediatecrisis, do not overlook that allimportant phone call to the insurers.
avoiDDElays Thecircumstances of thelossshouldbe immediatelynotified to your insurersortheir appointedrepresentatives.RMCs should make sure they arefamiliar with theclaims procedure in advance and be aware ofwho tomake first contactwith. Thismaybethe insurers, an appointed claimsmanagement companyorthe
broker.Most blocks of flats policies contain aclaimsnotification condition stipulating that immediate notificationofaclaim is
required.The breach of such aconditioncould lead to theinsurers
restrictingor-in somecases-withdrawing policy coverage. Your insurerswillappoint alossadjuster
andmay also appoint additional experts such as forensic investigators,building surveyors andengineers,all ofwhichwillassist the insurerinforming an opinion on policy coverage,the causeofthe loss,the repair andreinstatement optionsavailableand the potentialformaking arecoveryagainst a responsible third party.
ManagingthE rEpairs Managing the reinstatementworks following amajor loss canbe a complex and time
emergencyservices
consuming
process.MostRMCs will find that they neitherhavethe in-house expertiseorthe resources to deal with suchamonumentaltask. It is recommendedthataconsultantorsurveyor is appointedtofulfilthe projectmanagement role andtokeepdetailedaccounts of costs. Most blocks of flats policies will include cover for‘professional fees’uptoapre-determined indemnity limit, although aconditionofthe insurancepolicymay be theprior agreement of theinsurer to theappointment of an expert.
Winter 2011 Flat Living
immediateattention needstobegiven to contactingthe
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