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QUESTION Can the directors' insurance referred to below as featured in ‘25 Things Every Flat Owner Should Know” be charged back to the service charges account? “11: The risk of personal liability can be protected by purchasing the appropriate directors’ and officers’ insurance policy."   ANSWER The short answer to your questions is that it depends on the terms of your individual lease. Each lease will set out the expenditure that can be recovered from the service charges. Some leases will allow for

Homeowners who are planning to commision building projects must now ensure they use a contractor that adheres to new construction rules. Changes to the Construction (Design & Management) Regulations 2015 (CDM) come into effect on April 6. This piece of legislation aims to reduce accidents during construction projects via good design, planning and co-operation, and also specifies legal requirements on site safety standards and for the provision of welfare facilities such as access to toilets. If homeowne

The Regulatory Reform (Fire Safety) Order (RRFSO) 2005, which came into force in October 2006, charges the responsible person in control of non-domestic premises and the common areas of a House in Multiple Occupancy (HMO) with the safety of everyone in the building, whether working, visiting or living there. This duty of care includes the provision of emergency lighting. Legally every block or building needs emergency lighting. The appropriate standards have to be adhered to, but what often gets overloo

We complain about the short day length in winter but in many ways we are immune to the seasons as we move through our 21st-century, technological lives. Yet light and day lengths remain important to our state of mind. The seasonal fluctuations have an impact as the actual wavelengths present and daylight varies from one day to another. They also vary depending on latitude, meteorological conditions and the seasons. SAD syndrome is definitely a reality for many people in winter. That’s just a part of its

It's human nature to want to find a bargain. Who doesn’t want to think they’ve got one over on a world that seems to forever want to rip us off in some way. On the other hand, how many times have you thought, ‘If it sounds too good to be true, it probably is!’ Our industry sector is no different and is, unfortunately, not immune from the ‘cheap as chips’ fraternity, much to the detriment of us all. The drive is on for estate management service charges to become more competitive. Consequently we’re seei

The Upper Tribunal’s recent decision in the case of Merie Bin Mahfouz Company (UK) Ltd v Barrie House (Freehold) Ltd dealt principally with a freeholder’s entitlement to claim leasebacks of units within a building which were not in existence at the “Relevant Date” (being the date on which the Initial Notice was served) and which included common parts. The three units subject of the appeal and in relation to which the freeholder was seeking leasebacks were known as flat 1A, the basement office and the por

Royal assent has now been given to the Insurance Act 2015, which is due to come into effect in August 2016. This is to allow brokers and insurers ample time in which to update their paperwork and policies to facilitate the new measures. The act will affect all insurance and reinsurance placements and renewals. It will be possible to specifically contract out of the new act - but only if any terms less favourable to the insured than the terms of the act are drawn to the insured’s attention in clear and un

Everyone understands the importance of insuring buildings against the risk of damage or destruction by fire or flood. What is less well understood is the importance of an accurate assessment of what it would cost to restore or rebuild the building if the worst were actually to happen. An insurance policy will be of little help if it is based on an underestimate of that figure, and the Association of British Insurers advise that 20% of householders are in fact underinsured, while one study has put the fig

The most appropriate way to ensure a reinstatement value is correct is to commission a regulated surveyor to carry out a professional valuation at least every three to five years. An accurate and professional property valuation is vital to ensure the building would be fully covered for the costs of reinstatement should a claim be necessary. One of the most common discrepancies in insurance valuations is between the market value of the property and the reinstatement cost. Even in today’s economic climate

Selecting the insurance policy that suits you can be compared to buying a bottle of wine. Unless you have the appropriate experience you could easily buy a bottle that doesn’t suit your taste. And when you have opened the bottle it is too late. Buying insurance for your block is very similar but, instead of ruining your meal, the consequences are far greater when you make a claim and discover the insurance policy is not fit for purpose, affecting many flat-owners’ lives. So, how does a discerning purcha

Comparing the insurance market to this time last year, little has changed. The market remains competitive for well running ‘risks’ and competition between insurers remains strong. Most activity has actually resulted from the brokers themselves, with teams relocating and company acquisitions. Therefore, as opposed to focusing on predictions and potential legislative changes that could affect you in the future, let’s examine certain factors that may be impacting property managers currently. 1. Average  

I became non-executive chairman of leasehold advisory service (LEASE) on 1 January 2015 and the first three months have offered a steep learning curve to understand the requirements of leading a governmental arms-length body. I find myself sucked into issues and online comment, from specific matters to general queries. I am finding everything that I have said or written in the past is scrutinised and quoted back at me as some rallying call for what we should be doing going forward. The one thing I am ol