Insurance for Right to Manage and Residents’ Management Companies
Why use Glowsure for your Right to Manage Insurance?
Glowsure is based on the simple foundation of ‘making insurance easy’. We don’t have call centres or phone queues and we won’t fob you off to the insurer if you have a claim.
We’ll explain things in plain English and we’ll even come to see you if you like. Because Glowsure is an independent insurance broker, we can search the market for you for the best cover at the best price available to us.
We can arrange cover for a house converted into just two flats or a large purpose-built block with many individual flats. We aim to make every interaction with us an easy and positive one.
What Insurance Do I Need?
You will need specialist insurance because standard buildings insurance policies won’t provide adequate cover. When damage or loss occurs to a block of flats it can impact on many households. By ensuring the appropriate cover is in place, innocent flat owners can be spared potentially significant financial hardship in addition to the disruption caused by the damage.
We recommend specialist policies intended to ensure the complex needs of all interested parties (Leaseholders, freeholders, residents’ associations, management companies and right to manage companies) are met. A block policy will cover the whole building for all major risks such as fire, storm, flood and leaks (burst pipes) trace & access together with the following common extensions.
- Loss of rent / alternative accommodation
- Property owners liability of £5,000,000 or £10,000,000
- Communal contents up to £25,000
- Employers Liability of £10,000,000
The unique specially enhanced wordings we recommend also extend to include:
- Automatic extension for repairs / contract works up to £50,000
- A non-invalidation clause to prevent the policy being invalidated by events unknown by or outside the control of the policyholder
- Automatic extension to the Public Liability section to protect management companies, residents’ associations, right to manage companies and lessees
- Automatic extension to extend loss of rent cover to private lessees who rent their flats
- Removal of onerous Unoccupancy clauses replaced by a simple £500 excess
- Automatic inclusion of interested parties
- Automatic transfer of interest extension to cover sale of flats
- No Average Clause wording thereby preventing any further financial loss in the event of under-insurance with selected insurers
- Automatic compliance with the mortgage lenders handbook
What else do I need?
In order to offer full protection against the risks faced we would also recommend the following additional covers/policies are considered where appropriate:
- Management liability for residential management companies:To protect your personal assets if you are a director of a management company.
- Rebuild Cost Assessment: To obtain a correct rebuild valuation to prevent under or over insurance.
- Terrorism: To provide cover for damage caused by terrorist activity.
- Engineering Inspection/Insurance: To provide Statutory Inspections of lifts and other plant by a Qualified Engineer and insurance cover for Breakdown, Sudden & Unforeseen Damage, Explosion and Collapse.
Right to Manage Insurance Claim Examples
Useful Information & FAQ’s
Last year the insurance market in the UK entered a phase where insurers began withdrawing capacity, competition reduced, and underwriters became increasingly selective about which risks they would insure and at what terms. This is known as a hard market and as a result premium rates have increased.
Saving money on buildings insurance is something every flat and block of flats owner wants to do although cheaper is not always better. Through proper risk management savings are possible and a previously poor claims history can be improved. Each block is unique and we will work you to understand your risk and present your story to insurers to obtain the best cover for your needs at the best price available to us.
The building should be insured for reinstatement purposes which is the cost of rebuilding as new, including demolition, clearance and professional fees. It is not the market value. There are so many factors that can affect the cost of rebuilding this is a matter that should be left to the experts. A Rebuild Cost Assessment by a RICS qualified professional is the best way to make sure you are adequately insured. We can help with this.