ChECkINgyoU hAvE ENoUghCovER


The normal Limit of Indemnity is £10 million,which is generally considered to be adequate.


DIRECtoRSAND offICERS Liability is arelativelynew type of coverintheUK market. It protectsthe individualmembers of theManagementCompany against theirlegal liability following“wrongful acts”arisingwhen carrying outtheirRMC duties.“WrongfulActs” aredefinedinthe policy andinclude allegedbreachofduty, negligence, misleading statement and defamation.


Thepotential forerror that canleadtoa legal action is very real.When there is financial loss situations canchangeand RMCmembers canquickly be facedwith the prospect of defending an action that has been broughtagainst them.


Each potentialclaim is judgedonthe material facts behind the particular incident.The pointtorememberisthat RMCmemberswhetherlegally liable,or not, areexposed to thepotential risk of litigation and legal costs. Policy Limits of Indemnity normallyrange from£50,000 to £2 million


Covercan be extended to include coverfor the “entity” (RMC, Residents Association or RTMcompany)providing thecompany reimbursements forany loss anddefence costs as a result of a claim for a director’s or officer’s wrongful acts, errors oromissions.


LIft INSpECtIoNAND BREAkDowNINSURANCE


If you have a lift within your block you are required by lawto have it inspected every 6months by an approved “competent authority” andholdappropriate reportsto confirm.You canbuy acontractthatcovers theinspection elementand it is also worth noting that this cover is subject to VAT at thecurrent rate.Itiscommonto cover your lifts against sudden and unforeseen damage;thiscover canprove to be extremelyuseful andcan also be extended to coverothermachinerysuchasautomatic entrance doors and electric gates or barriers.


CoNCLUSIoN


Avitally importantthing to remember is that policies arenot allthe same.The companyoffering thecheapest dealmaynot necessarily providethe levelofcover you need.Aspecialist with accesstobespoke Insurancepolicieswillbeabletooffermore informationand provideaquotation to offer suitable and appropriate protection.


Flat Living GUIDETO INSURANCE 7


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