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Common Building Insurance

Published on 16/09/2020

Buildings Insurance cover is one of the most important subjects any homeowner must consider, and for most flats is often one of the larger areas of expenditure.

Premiums for flats are typically calculated by applying a “rate per £100” to your building Sum Insured and adding Insurance Premium Tax. These 3 factors determine the premium you pay for your insurance.

Insurance Premium Tax is set by the UK Government and has increased from 6% in 2011 to 12% today.

Homeowners are expected to exercise reasonable care when considering all terms of cover required and Insurers expect homeowners to ensure they have their property insured for the correct value. Many of our customers already instruct us to carry out regular building insurance valuations to satisfy themselves that the insured value is correct and will be enough in the event of a claim.

Our brokers have indicated that, in the event of a claim, if the sum insured is considered by a loss adjuster to be less than an appropriate value, then a claims payment would likely be made proportionately, possibly leaving a shortfall for you and your neighbours. If you would like to arrange for a revaluation of your building’s Sum Insured to be carried out, please let us know and we would be happy to help.

Hacking & Paterson Management Services work with AON, an internationally recognized, leading insurance broker, to help secure the best cover for our customers. When placing your insurance policy, AON take account of many factors:

  • Suitability of insurance company – Ensuring the insurer can support the policy for the duration of the insured period
  • Appropriateness of cover – Ensuring that when a claim occurs you can be confident the policy wording covers all eventualities likely to be required
  • Effective claims handling – Ensuring when you make a claim you can speak to claims handlers who understand your property and who can help arrange repairs and reimbursement of expenses incurred effectively and efficiently
  • Premium rate – This is influenced by the cover offered and claims handling service, but will also take account of other market factors including overall loss ratios, availability and appetite of insurers to provide flatted policies and other wider economic factors.

We work with our brokers to ensure that our customers receive an excellent level of service and the most appropriate cover, at the most competitive rate. We have been delighted that the vast majority of our customers have not seen their premium rate increase over the past 5 years.

Currently, the insurance market is hardening and the impact of Covid 19, wider economic uncertainty, the withdrawal of several insurers from this market and the high rate of Escape of Water claims in flatted policies, indicates that difficult times may lay ahead. This is already being evidenced with several other factoring companies experiencing premium rate increases and increased policy excesses during 2020 renewals.

The bulk of the insurance policies HPMS place for our customers renewed in May 2020 and our broker reported similarly that insurers were seeking premium rate increases. Despite this AON successfully negotiated renewal on level terms, with no premium, or excess increases.

For customers whose insurance is due for renewal in the coming months we are discussing the best options available with our broker and will report on the renewal via your My H&P Web Portal and App in due course.

If you are looking to find out more about Common Buildings Insurance you can visit the Under One Roof Website, where you will find independent information and advice on this and many other important subject affecting flat-owners in Scotland.

Don’t have a Common Insurance Policy?

One of the advantages of insuring your building through your Property Factor is the option of arranging a Common Policy, which covers all flats in your building.

By insuring via a Common Policy you can be assured that all flats are covered, subject to a suitable Sum Insured, instead of checking each year that individual homeowners have taken suitable cover for their flat and their share of common parts of the building, and that these policies remain in force.

Furthermore, if you insure your building separately not only will you will likely require to pay multiple excesses for any claim, which may exceed any premium savings, if any homeowner is uninsured it can become extremely difficult to progress essential repairs.

If you are unsure how your insurance is currently arranged, if you have been experiencing any problems or if you would just like some more information on how we can help you arrange your insurance please contact your Property Management Team or call us on 0141 248 5693.

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