Under the terms of your lease, the management company is usually responsible for insuring the main structure and associated grounds. (Please note that the master buildings insurance policy will not be providing cover in respect of lessees' own contents and may not cover communal items such as carpets unless specifically requested and stated). Lessees should, therefore, ensure that they have adequate cover in place (this may be a condition of the lease). We will ensure that a master buildings insurance policy is in force at all times with appropriate levels of cover for all eventualities.
Like any type of insurance, claims must be made within certain timescales. Therefore, any reportable incident that may involve insurers should be made without delay to us. We will then co-ordinate matters and liaise with all other parties as appropriate. (In certain cases an additional charge may be levied by us to reflect the amount of work necessary – you will be made aware of any additional charges before the work is undertaken).
We will also ensure (subject to your approval) insurance on major items such as lifts is in force as appropriate. These items will not be covered by your master buildings insurance policy and it should be borne in mind that this type of equipment is very expensive to replace. By effecting insurance you will be covered against having to make very large payments to replace parts in the event of failure. (The cost of this insurance will be additional to any routine maintenance charges on the equipment. For related insurance policies to remain valid it will be a condition (of such policies) that routine maintenance of the equipment is maintained).
Whilst it is not a legal requirement we normally sugest that you effect Directors & Officers Liability insurance. In today's society, company directors are being held increasingly responsible for the decisions they make. Directors and officers of companies have to deal with areas such as discrimination and harassment. It is easy to make a simple mistake when carrying out director's duties. Claims can arise from shareholders (your fellow lessees), creditors and regulatory bodies to name a few. We are not attempting to scaremonger, we just consider that it may be prudent for you to have this cover in place given the litigious society in which we live today.
Although we co-ordinate your insurance covers we do not wish to compromise our independence.
Currently, we choose not to be regulated by the Financial Services Authority (which would increase the fees we charge you but allow us to undertake additional insurance related work) but instead direct you to a reputable independent insurance intermediary to arrange insurance and handle claims. To maintain our independence we do not receive any commission for the co-ordination of insurance but the independent intermediary does receive commission from the premiums that you pay (to recompense them for their time and skill). We co-ordinate the re-broking of the insurance covers each year thus enabling the best possible cover at a competitive premium to be obtained. In view of the fact that we introduce business to the intermediary the commission that may have been offered to us as an 'introducer's commission' is used to reduce the premium paid by out clients. On an annual premium of, say, £2500 for buildings insurance, the saving could amount to about £250 (10%).