It’s important you have the right insurance in place for the properties you manage, is it up to date and are you are getting the right cover and best value for you, your leaseholders and residents?
Here are the top 7 insurance tips to consider when reviewing your property insurance:
Specialist and experienced property insurance providers are best placed to provide the right cover and price. They should be able to search a panel of reputable UK insurers to find the best solutions for you.
Residential managing agents need up-to-date safety and compliance risk management solutions to help clients save money, lives and mitigate risk. Access to expert Risk Management advice should be an integral part of the service offered by your insurance provider.
Insurance Regulations Change
Your insurance provider should keep you up-to-date on any change to regulations, especially after the UK exits the EU.
Obtain advice on whether the properties you manage need specialist covers such as Directors & Officers Environmental Liability, Professional Indemnity, Terrorism and where there’s a lift, Engineering.
Client Money Protection
All firms operating within the Private Rented Sector (PRS) in England and Wales are required by law to hold a government approved Client Money Protection scheme membership but there are key differences for managing agents. Letting agents hold around £500,000 of client money whereas residential managing agents may typically hold over £6m and not actually be covered by their lettings CMP scheme.
The “levy schemes” currently available pool the premiums paid by members to pay claims from other members. This works well within the PRS as claim amounts tend to be small, however one claim from a managing agent could cost the premiums paid by all members.
One aspect of insurance that often gives managing agents a headache is having to track the progress of claims which can be time consuming and stressful. The claims management process should offer a 24/7 service for you, leaseholders and residents alike, leaving you free to spend your valuable time elsewhere.
Protect Directors and Officers
Many people don’t realise they can be held personally responsible for errors or omissions when they agree to become a Director of a Residential Management Company or Right to Manage Company. Directors and Officers insurance provide defence costs and compensation if they are held personally liable for a wrongful act whilst working on behalf of leaseholders.
Having the correct level of insurance is essential and should be reviewed on an annual basis.