Flats Insurance

We do not simply sell off the shelf products, as these will not meet the leasehold requirements of the clients. All of our polices have been enhanced to bring them up to our minimum standard and include the important features below to ensure that leasehold requirements are met and that the freeholder and leaseholder are protected.We have delegated authority with:

• Aviva
• AXA
• NIG
• Coveá

And a wider unique wording with

• Ecclesiastical

Important Features

Relaxed Unoccupancy Clause

An Unoccupancy wording which ensures flat owners are not left without cover due to circumstances beyond their control and that the policyholder, or agents acting for them, are not expected to comply with impractical inspection clauses to maintain cover.

Extended Alternative Accommodation

Alternative accommodation up to 33% of the buildings sum insured which takes into consideration flats of differing sizes and has no time limit on the period of indemnity. This is important as rebuilding blocks of flats can take several years.

Loss of Rent for Rented Flats

Loss of rent not only to the policyholder but also to flat owners who have let their flat. This is commonplace due to changes in circumstances and these flat owners need this protection.

Non-invalidation

A Non-invalidation Clause which prevents the policy being invalidated by circumstances which have arisen outside the knowledge or control of the policyholder.

Indemnity to Managing Agents

A Liability Extension to include flat owners, occupants and all relevant parties, including managing agents; this not only provides these parties with essential cover in respect of their involvement with the property but also acts as a subrogation waiver so they will not be held financially liable for damage to the block following a claim.

Inflation Protection

Index Linking on an ongoing monthly basis, including into the life of a claim, rather than just at renewal or the option of a Day One Uplift. This provides vital protection against the effects of inflation and ensures the sum insured remains adequate.

Average Free

No Average Clause wording thereby preventing any further financial loss in the event of under-insurance with Aviva, AXA and Coveá.

Hidden Small Print

No inappropriate warranties or conditions such as:

• Types and percentage of types of occupants
• Inspection of unoccupied flats
• Inspection of flat roofs
• Removal and storage of waste
• Illegal cultivation of drugs

Why This Is Important

When damage or loss occurs to a block of flats it can impact on many households. By ensuring the appropriate cover is in place, innocent flat owners can be spared potentially significant financial hardship in addition to the disruption caused by the damage.

These features are designed to protect the interests of flat owners and are available in most of our products. Our unique focus and understanding of flats enables us to offer covers specially designed to respond to the leasehold flats market.

Terrorism

Terrorism Insurance has remained a controversial insurance element of block buildings policies because of the cost implication.

Why should your client take Terrorism? Simply they may need to take Terrorism to meet the terms of their lease. There was a ruling by Upper Tribunal (Lands Chamber) in the case of Qdime Ltd and (1) Bath Building (Swindon) Management Company Ltd (2) Various leaseholders as identified in the LVT decision – the ruling was that Terrorism cover is required to discharge their lease as explosion is a peril recommended by the CML (Council of Mortgage Lenders Handbook section 6.14.2) and to not have Terrorism cover, would not be fully insuring for the peril of Explosion. This is a very simplified version of this case, for more detailed information on this case please refer to this article written by our MD Paul.

Cover has been available since January 2003 under the Pool Re scheme on all risks basis including nuclear, biological and radiologicaly means, this was as direct response to an ever changing threat. We only offer quotations on Pool Re terrorism, care needs to be taken with other Terrorism schemes to ensure that this risk is covered.

Engineering cover for Lifts and Boilers

It is a statutory requirement for a passenger lift to be inspected by an independent party twice a year and a communal boiler once a year. We can arrange this for you along with sudden and unforeseen damage cover in order that the covers dovetail together to prevent any grey areas.

Directors and Officers and Legal Expenses

A vital cover for all Directors of RTM, RTC and Residents Association – they are personally responsible for decisions that they make regarding running the block. Our Elements policy combines both recommended covers click here for more details.