tHeDevilis intHeDetail


tHe Devil is in tHe Detail


Insuring ablock of flats or abuilding converted into flats,whether heritage or not, is very different to insuring othertypes of property.Withflatsinsurance there is inevitably aneed forthe policyholder to fulfilthe requirements of thelease, whilst at the sametime, recognising thebeneficiariesofthe policy i.e. theflat owners.The rolesofPropertyManaging Agents,Residents’Management Companies, Residents’ Associations and RighttoManageCompanies also need to be considered.


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


typesand percentage of typesof occupant?


inspection of unoccupied flats? inspection of flat roofs? removaland storageofwaste? 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, they will notbeheldfinanciallyliablefor damage to theblock followingaclaim?


nIs thesuminsuredindex protected by suitable inflationmeasures during a loss?


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


Flat Living GUIDETO HeritageFlats 9


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