Insurance Co-Ordination in Portsmouth
Under the terms of your lease, the management company is usually responsible for insuring the main structure and associated grounds. (Please note that the master buildings insurance policy will not be providing cover in respect of lessees’ own contents and may not cover communal items such as carpets unless specifically requested and stated). Lessees should therefore ensure that they have adequate cover in place (this may be a condition of the lease). We will ensure that a master building insurance policy is in force at all times with appropriate levels of cover for all eventualities.
Like any type of insurance, claims must be made within certain timescales. Therefore, any reportable incidents that may involve insurers should be made without delay to us. We will then co-ordinate matters and liaise with all other parties as appropriate. (In certain cases, an additional charge may be levied by us to reflect the amount of work necessary ā€“ you will be made aware of any additional charges before the work is undertaken).
We will also ensure (subject to your approval) insurance on major items such as lifts is in force as appropriate. These items will not be covered by your master building insurance policy and it should be borne in mind that this type of equipment is very expensive to replace. By effecting insurance, you will be covered against having to make very large payments to replace parts in the event of failure. (The cost of this insurance will be additional to any routine maintenance charges on the equipment. For related insurance policies to remain valid, it will be a condition (of such policies) that routine maintenance of the equipment is maintained).
Whilst it is not a legal requirement, we normally suggest that you effect Directors & Officers Liability insurance. In today’s society, company directors are being held increasingly responsible for the decisions they make. Directors and officers of companies have to deal with areas such as discrimination and harassment. It is easy to make a simple mistake when carrying out director’s duties. Claims can arise from shareholders (your fellow lessees), creditors and regulatory bodies to name a few. We are not attempting to scaremonger, we just consider that it may be prudent for you to have this cover in place given the litigious society in which we live today.
Although we co-ordinate your insurance coverage, we do not wish to compromise our independence.
As part of our commitment to delivering cost-effective property management in Portsmouth, we have chosen not to be regulated by the Financial Services Authority. While regulation would allow us to undertake additional insurance-related work, it would also increase the fees we charge. Instead, we refer clients to a reputable independent insurance intermediary to arrange cover and handle claims. To maintain our independence, we do not receive any commission for insurance coordination. However, the intermediary earns commission from the premiums you pay, reflecting their expertise and time. We co-ordinate the re-broking of insurance annually, ensuring our clients receive the most comprehensive cover at competitive premiums. Any introducer’s commission offered to us is instead used to reduce your premium costs—resulting in potential savings of up to 10%. For instance, on a typical annual buildings insurance premium of £2,500, you could save around £250.