How to choose your Buildings Insurance Policy
<p>Andre Backner is Head of FlatGuard at <a href="http://www.bridgeinsurance.co.uk/">Bridge Insurance.</a></p>
Cheapest is not best. Buying a product purely on price is a strategy fraught with danger. Recent press coverage of cheap beef products not being beef is a really good example. What you see is not always what you get. This is also true of insurance products.
Management Companies and Managing Agents should be wary of internet providers, high street brokers and marketing specialists offering off the shelf products sold purely on price.
Insurance Companies are in business to make profits for their shareholders. No insurer can consistently, year on year, guarantee to provide insurance at lower cost than the competition and pay out more in claims. Buyers need to look for a great track record of consistency in the market as well as great value.
USING A PROFESSIONAL
Using a Managing Agent in conjunction with a Specialist Insurance Provider with a specific policy designed exclusively for Blocks of Flats provides an important layer of protection and confidence to policyholders. A blend of their expertise, ability to speak the language, depth of understanding of the dynamics of the industry and experience in negotiating cover plus their on-going service support can prove invaluable should the worst happen and a major loss occurs. If you have ever tried to ask online firms for the answers to complex queries or help with an unusual problem you will recognise the value of professional advice.
VALUE FOR MONEY
Some Flat Insurance advisors or providers will spend a great deal of time, and money, explaining why their policy is best. This is often done through a comparison sheet of extensions and extras. However, they will understandably focus on the extensions where they are better than the competition.
Bells and whistles can sometimes disguise underlying fundamental cover flaws.
It is often difficult, even for the seasoned professional, to ‘DNA’ test the coverage and thus understand how competing products compare.
‘DNA’ TESTING COVERAGE
Choosing a specialist broker or facility is an important part of the decision making process. A standard property wording is unlikely to provide the necessary breadth of protection.
If there is a claim, knowing that your policy has been designed specifically for the needs of Leaseholders in Blocks of Flats, should avoid nasty surprises.
However, there are a number of key questions to be asked of any potential insurance provider before buying cover. These include:
- If I get my Block sum insured wrong is the policy free from under-insurance penalties?
- If we take a legal dispute to the LVT will my policy meet the costs?
- As a leaseholder with a tenant am I covered for my loss of rent or service charge following a fire?
- Will the policy pay an unexpected bill for VAT?
- If one of our leaseholders leaves a flat empty through the winter and there is a leak will insurers still pay out?”
- Is Employers’ Liability Cover automatically included when we need it?
CONCLUSION
Good value is available: delivering on quality of protection; backed by a respected insurer; supported by experienced advice and with a track record of a fair and consistent approach to paying claims. These are the right ingredients to satisfy that ‘DNA test’.
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