Common Insurance

For many of our customers our Core Factoring Services include for the placing of common insurance policies.
Common Building Insurance
In an effort to secure the most competitive terms of insurance for our customers, we appoint AON insurance broker to place the common insurance cover over the properties in our management portfolio.

If you have any doubts as to whether you have insurance cover through HPMS, or about the identity of the insurer covering your property or if you would like further details of the cover, please contact our office and we will be pleased to provide you with the relevant information.

Common Insurance can be a confusing and complex matter. We have therefore produced this informative Q&A which we hope will serve as a useful guide in helping unravel some of the issues.

How does HPMS procure common insurance for a property?
We do so by initially placing instructions with our insurance broker to research the market and provide their recommendation on insurance cover. We then place the policy through them, for one year, as appropriate with a reputable insurance company on competitive terms, with extensive cover.
How often should the sum insured be reviewed?
Valuations can be arranged by HPMS on behalf of the homeowners upon request and it is recommended by RICS that valuations relative to buildings insurance are undertaken approximately every 5 years. Should the homeowners wish we can obtain costs to have valuations carried out.
How does a homeowner know the insured sum is adequate?
The only method by which to be assured of a true insured sum is to have an insurance reinstatement valuation carried out by a suitably qualified valuation surveyor.
How is the premium calculated?
Insurance premiums are calculated using a rate per £100 insured. So if the property is insured for £1,000,000 and the rate is £0.18 per £100 insured simply apply 0.18% to the £1,000,000 resulting in a premium of £1,800.00. In addition to the premium all insurance attracts insurance premium tax (IPT) of 12% and this will be included in the figures appearing on homeowners common charges invoices.
How is the annual insurance premium billed?

In order to assist our clients in budgeting and payment we spread the annual cost of the building’s insurance premium over 4 equal instalments through our May, August, November and February common charges invoices. Other insurances attracting smaller premiums appear as a one-off charge in the homeowner’s invoice against the due date.

How is a claim made?

Where possible HPMS looks to assist with the claims administration process and more specific details of how a homeowner can intimate a common or private claim can be found here.

What is a policy excess and why is this necessary?

A policy excess is a contribution the claimant is required to pay towards a claim and the amount of excess therefore defines the minimum claim value on the policy.

What is index linking?
Many insurers help make sure that the sum insured is kept up to date with any changes in rebuilding costs by ‘index linking’ the policy. This simply means that a sum insured is amended automatically at renewal to reflect any change in the rebuilding cost index. Index linking alone does not ensure that the sum insured is adequate – see points 2 & 3 above.
If a homeowner already has a buildings insurance policy in place that they arranged directly when they purchased their property, in addition to a common policy, how is this resolved?
It is standard practice where dual insurance is identified and where no claims have occurred, for both insurers to agree a 50% refund of premiums paid. In such circumstances, we will offer advice which will be dependent on the specific circumstances involved.
what does a homeowner pay HPMS for with regards to their insurance?
In our role as property factor and with specific reference to our terms of service and delivery standards, HPMS offer to place “… insurance cover through HPMS broker, where appropriate, for buildings, property owners liability, lifts, employers liability etc.” our main core factoring service in relation to common insurance on behalf of our homeowner customers is that of “placing insurance cover” and the administrative cost of this is included in your management fee.
Does HPMS get a commission or fee from a common insurance policy?
No, however, as is commonplace in the industry, the broker receives commission from the insurer and is responsible for handling most of the administration of the policy. The broker in turn looks to H&P, the parent company of HPMS to carry out the majority of this administration for which we receive commission.

The administration that we undertake in this role includes:-

  • Issuing policy documentation
  • Claims administration assistance (not Claims Handling which the insurer or broker deals with)
  • Dealing with necessary policy endorsation
  • Corresponding with interested parties where necessary, such as solicitors, banks, lenders and homeowners
  • Arranging for the collection of the premium on behalf of the insurance company

All of the above is in addition to our formal commitment to the broker that the entire annual premium due by the various homeowner groups will be paid to them on time.

Customer Support

Latest News

EASTER HOLIDAY HOURS OF BUSINESS 2025

EASTER HOLIDAY HOURS OF BUSINESS 2025

EASTER HOLIDAY HOURS OF BUSINESS 2025 During the Easter period, our office opening hours will be reduced as follows: Friday 18th April – Closed from 12:45pm Monday 21st April – Closed Normal opening hours of 9:00am – 5:00pm resume on Tuesday 22nd April 2025. During...

HPMS Supports Local Foodbanks

HPMS Supports Local Foodbanks

A Huge Thank You to Our Glasgow and Edinburgh Teams! At HPMS, we believe in the power of community and the importance of giving back. Both our Glasgow and Edinburgh teams stepped up to support their local foodbanks, and we couldn’t be prouder of their efforts! Glasgow...

HPMS Inspires Young Minds at ‘Together with Ambition’ Conference

HPMS Inspires Young Minds at ‘Together with Ambition’ Conference

Last week, members of the HPMS team took part in the 'Together with Ambition' conference at Mearns Primary School, where P7 pupils from different schools explored various career opportunities and engaged with professionals from different industries. HPMS was proud to...

Hacking & Paterson Management Services
Powered by  GDPR Cookie Compliance
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.