How Can I Reduce the Cost of My Block’s Insurance for Our Residents?

As a Managing Agent or RMC Director, taking control of the buildings insurance for your block is one of your biggest responsibilities. You’re tasked with finding the right level of cover, for the right price.

Your best bet is to work with a specialist broker to ensure appropriate cover is maintained at the best price possible- but the cost of insurance will always be one of the biggest annual costs for the block.

Here are a few things to consider which will help you keep your premiums down:

Buildings Sum Insured

Step one should be to ensure that your Buildings Sum Insured, or Declared Value, is up to date and accurate.

Tip: This is not the same as the price paid for the property or a current market valuation.

Your Buildings Sum Insured is the maximum amount of money your insurer will be willing to pay out to rebuild your property from the ground up (to its current design and to current specs) should the very worst happen. This valuation includes demolishing and clearing away any remaining structures before rebuilding with modern materials and professional labour.

Your property should be re-valued at least every 5 years by a Chartered Valuation Surveyor. They will take into account any improvements made to the property since the last valuation as well as the current costs involved in reinstatement.

Flood

If your property is in an area known for possible flooding, it’s worth finding out what flood defences are already in place. Your local authority will be a great source of helpful information and it’s worth investing the time to gather the information.

If your property is on a hill, even if in a flood area, this is also helpful information to provide insurers with and you may want to keep in mind that flooding from “surface water run off” is becoming more of a concern for insurance companies, so be prepared to point out if your property benefits from any natural or purpose-built drainage.

Subsidence

Insurers have postcode-checking tools which identify areas that are likely to be more susceptible to subsidence or flooding.

If your property is in a known area for subsidence and you have trees around your property, provide details of your ongoing grounds maintenance program to show trees and vegetation are regularly checked and their growth is kept under control.

By controlling growth and containing the leaf canopy of your trees and shrubs, you will limit the amount of moisture extraction from the ground by roots- which is a major contributory factor in destabilising the subsoil in many subsidence areas.

Risk Assessments 

Risk Assessments are an ongoing responsibility and, in some cases, a legal requirement. Providing evidence these have been completed on a regular basis and that anything found has been acted upon could help reduce your premiums.

Security

Advise your broker if your property has CCTV, an on-site concierge or telephone access facilities- or if each resident requires a key-holder or pass-holder for access to the property.

Automatic Fire Alarm

If your building has an automatic fire alarm with signalling direct to the emergency services, central call station or alarm monitoring station, this can often enable discounts.

Fully Managed Developments 

Evidence of ongoing contracts for the upkeep and maintenance of the property/grounds by professional service providers and facilities contractors, which could also include evidence of regular and periodic inspections of flat roof areas, can go a long way to reducing your insurance costs.

Electrical Wiring Checks

Being able to evidence that electrical wiring within the common areas is being regularly inspected and maintained to current requirements is also a great way to gain discounts.

Water Control

As water damage claims account for 75% of all claims in blocks of flats, if there are enhanced or additional features to prevent or reduce claims- for example sprinkler systems or in built water leak detection devices, then this will be important to your insurer.

Construction

Preferential rates will be applied for concrete floors and stairs as claims involving these structures are associated with lower costs. Flat timber roofs are a concern as their construction needs regular maintenance and replacement, however, flat concrete roofs (with a guarantee) could earn you some more brownie points!

If your roof is out of guarantee, a regular roof inspection and report to confirm the condition of your roof is adequate can also help.

To check your premium is suitable, simply call our team at London Flats Insurance on 020 7993 3034.