Insurance Services
Insurance is often one of the largest items of service charge expenditure and it is therefore essential that value for money is obtained. The main types of insurance relating to flats and communal grounds are:
- Buildings
- Terrorism
- Material Damage
- Public Liability
- Contents of Communal Areas
- Engineering
- Directors and Officers Liability
Alexander Bonhill, our dedicated insurance brokers, can arrange a comprehensive package of insurance for all types of developments and ensure the most cost effective level of cover is achieved.
Property Owners Combined Insurance Policies are issued in respect of both commercial and residential properties. In addition to providing reinstatement cover for the building structure, they also make provision to cover fixed glass, landlord's contents, contents of common parts (i.e. communal areas), loss of rental income or the cost of alternative accomodation. It is important to note that contents insurance for a flat or house is the responsibility of the property owner.
The ability to create bespoke policy wording has resulted in policies issued by Alexander Bonhill including some very useful cover enhancements.
Property owners combined policies are suited to:
- Property Owners/ Freeholders
- Property Investors
- Management Companies
- Managing Agents
- Residents Associations
- Tenants Associations
Policy cover extends to include:
- Property owners' liability - this provides cover where the Insured becomes legally liable to pay compensation to third parties for accidental injury or damage.
- Employers liability - this complies with UK legislation for legal liability for damages arising from bodily injury, illness or disease to employees in connection with their employment.
Terrorism
All UK insurance policies incorporate a "total exclusion" for loss or damage caused by terrorist activities. For an additional premium, policy cover can be extended to include damage occasioned by, happening through or in consequence of terrorism.
Terrorism is defined for the purposes of the insurance:
"any act by a person on behalf of or in connection with an organisation (including religious fanatics and animal rights activists) with activities directed towards the overthrowing or influencing any government by force or violence or wishing to bring fear or terror to a community or specific area of the community by their violent action".
Engineering
Insurance companies also provide an inspection service and insurance protection. The inspection service complies with statutory legislative requirements and is a fee based service carried out by a competent person.
Insurance protection provides sudden and unforeseen damage/breakdown insurance cover. This was initially restricted to the machinery inspected by the insurers but is now widened to include other plant and equipment where there is no inspection requirement. A wider all risks type cover, "Sudden and Unforeseen Damage", also known as "fragmentation" covers damage caused to surrounding property belonging to the insured.
Directors and Officers Insurance Policies
Did you know that the directors and officers of Residents Management Companies (RMCs) are at risk of being sued personally in matters relating to their business, regardless of whether or not it's a limited company?
Directors and officers of RMCs usually act in a voluntary capacity and this means making important decisions on behalf of other residents, for which the directors and officers can be held personally liable.
Duties imposed on directors and officers include:
- the custody and management of residents' funds
- care and skill in managing the proceedings of the association
- ensuring contractors who carry out work do so properly
Alexander Bonhill can arrange Directors & Officers Liability insurance against losses arising from claims for wrongful acts committed in the performance of a Director's duties.
