Question 1

Insurance

Accepted Answer

Q: We are six leaseholders who recently became freeholders. Although our property will be professionally managed by a managing agent, since none of the Freeholders has the time to do this, we have had to put in place insurance ourselves for the first time for the building, but as none of us are insurance experts we do not wish to risk leaving ourselves open to denial of a claim due to lack of understanding of the small print in the policy schedule. Could you please advise how other landlords who are laymen like ourselves deal with such a situation? Should we employ an independent broker to review our policy? FPRA Hon Consultant Belinda Thorpe replies: I would recommend the use of an independent broker who can review the options and covers available to ensure it provides a level of protection to suit the residents’ association. I would also recommend a valuation is completed every three years. Care needs to be taken when deciding on an insurer as some may require you to include VAT on your rebuilding cost and others may not. [Submitted November 2016]

Question 2

Insurance

Accepted Answer

Q: We are six leaseholders who recently became freeholders. Although our property will be professionally managed by a managing agent, since none of the Freeholders has the time to do this, we have had to put in place insurance ourselves for the first time for the building, but as none of us are insurance experts we do not wish to risk leaving ourselves open to denial of a claim due to lack of understanding of the small print in the policy schedule. Could you please advise how other landlords who are laymen like ourselves deal with such a situation? Should we employ an independent broker to review our policy? FPRA Hon Consultant Belinda Thorpe replies: I would recommend the use of an independent broker who can review the options and covers available to ensure it provides a level of protection to suit the residents’ association. I would also recommend a valuation is completed every three years. Care needs to be taken when deciding on an insurer as some may require you to include VAT on your rebuilding cost and others may not. [Submitted November 2016]

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