ThEdEvIl IS IN ThEdETAIl


Insuring ablock of flats or abuildingconverted into flats is very different to insuring other types of property


With flats insurancethere is inevitably a need for the policyholder to fulfil the requirements of the leasewhilst, at the sametime,recognising thebeneficiaries of the policy i.e. the flat owners. The roles of PropertyManaging Agents,Residents’ Management Companies, Residents’ Associations andRight toManage Companies also need to be considered.


Having takenthe timeto studyyourquotes, selected theappropriate sections andread thebrochures,youmaybeforgivenfor believingyou have theright insurance policy for your block.


Butwhatishiddeninthesmallprint and what should you be looking for?


Unfortunately,many policies that are sold forblocksofflatsare,infact, based on genericpropertyowners’ policies and, as such,the policy wordingmay notbe sufficient tomeet your needs. Someof the major areas you should consider include:


nIs theunoccupancy wordingsuitableor are flat owners left without cover due to circumstances beyond their control?


nIs thePolicyholder(or theProperty Manager acting for them) expected to comply with impracticalpolicywarranties


or conditions, such as : l typesand percentage of typesof


occupant? l inspection of unoccupied flats? l inspection of flat roofs? l removaland storageofwaste? l illegal cultivation of drugs?


nIs thesumforalternative accommodation adequate, taking into accountflatsof differing sizes?


nBearinginmindthatrebuilding ablock of flats cantakeseveral years, is thereatime limit on the period of indemnity?


nIs loss of rent available to flat owners whohavelet outtheir flats as well as to the policyholder?


nIs thereaNon-invalidation Clausewhich preventsthe policy beinginvalidatedby circumstances outsidethe knowledgeor control of the policyholder?


nDoes the Liability cover offer protection to flat owners, occupants, PropertyManagers andall relevantparties to ensure that during theirinvolvement with theproperty that they will not be held financially liable for damage to the block following a claim?


nIs thesuminsuredindex linked on an ongoingmonthly basis(includingintothe life of aclaim)ratherthanjustatrenewal therebyensuringvital protectionagainst the effects of inflation?


nIs thereanAverage Clausewhich creates further financial loss in the event of under- insurance?


10 Flat Living GUIDETO INSURANCE


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