Blocks of Flats Insurance - explained
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Blocks of flats insurance can be a confusing sector of the insurance market.
The risks associated with blocks of flats are not really that different to those covered by a standard home insurance policy. You're not significantly more likely to fall victim to a burglary if you live in a flat or to suffer structural damage.
The complications arise over the question of responsibility. With standard home insurance it's clear whose job it is to insure the structure of the building and its contents. With blocks of flats insurance it's not so evident. There are communal areas and facilities to think about, shared spaces and communal contents that need to be protected.
With a block of flats there are probably many parties involved, all with an interest in the property. There may be Residents Associations, Management Companies, Freeholders and Leaseholders to consider and it's not instantly clear where the ultimate responsibilities lie.
It's no wonder then that complications and questions arise as to who is responsible for what.
There are also many different types of blocks of flats constructed in various different ways and this will also influence and complicate insurance. Insurers will quote on any blocks of flats but their pricing policy, terms and conditions will vary according to the type of build.
For a start there are purpose built blocks, built from brick and concrete. These are designed specifically for multi-occupancy so issues of security and fire resistance are dealt with on the drawing board. Then there are conversions, widespread in towns and cities where land is at a premium. The rise in smaller households and a growing need for space means that large residential and commercial properties are ripe for re-development. Victorian townhouses, factories, churches and warehouses all offer excellent development opportunities and once dividing walls are erected, insulation fitted, electricity isolated and extra plumbing is installed - a block of flats is created.
Insurers will quote on any blocks of flats. Still, their pricing policy, terms and conditions will vary according to the kind of construction.
Flats can be insured singly, an individual flat leaseholder can select to insure her flat on her own, independently of the other leaseholders in the building. The problem with this is that conflicts of interest and disputes over responsibility can arise if an insurance claim is made.
To obviate this potential issue leaseholders tend to insure jointly, either through a management company or a resident's association. Usually, the responsibility for insurance will be taken up by the freeholder or by a management company acting on their behalf. They will insure the entire building and then charge the owner of each flat a portion of the premium, forming part of the service charge.
There are many issues that make blocks of flats insurance more complicated than standard home insurance, which is why it is wise to seek guidance from an insurance broker who specialises in insuring blocks of flats.
Article Source: Articlelogy.com
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