New Year is an ideal time to review whether 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?
ARMA (the Association of Residential Managing Agents) has recently partnered with property insurance experts Insurety to create a unique range of ARMA INSURE products for its members. Their top 10 insurance tips include:
Insurance regulations change
Your insurance provider should keep you up to date on any change to regulations, especially as the UK exits the EU. ARMA and Insurety work with the Ministry of Housing Communities & Local Government to help shape the future regulation of the industry so products and processes including claims management are regulation ready.
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.
An innovative new Client Money Protection product will soon be available specifically designed for UK-based managing agents where firms pay a premium based upon their individual risk and are not affected by the claims of other members.
Managing claims
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.
Access to expert advice
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.
Risk Management
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.
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.
Specialist covers
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.
Join a community
ARMA has over 300 members who can draw on extensive technical advice, professional guidance, training and support that cannot be found elsewhere. This gives ARMA accredited managing agents a distinct business advantage over their competitors.
Service
If you’re not receiving good service, switch provider!
Review your insurance
Most insurance providers offer a free review of your existing insurance. Why not make a New Year resolution to check yours?
Rob Mayo, Managing Director of Insurety
