Introduction - making sure your Buildings
and Contents are insured for the correct value is fairly simple and regular
checks should be made to make sure that your sums insured are adequate to
protect your needs. At Asset sure, we can cover:-
Purpose
Built Blocks
Conversions
Converted Factories
Engineering cover for Lifts
Directors & Officers Liability
Many insurers are not prepared to provide
Building
Insurance for property that is split in to Flats. At Asset sure, we are able to
provide quotations for Buildings that have be divided up in to Flats and we will
consider both owner occupied blocks or blocks that involved an element of
letting. Our experience of insuring Flats is that in any one block, you are
likely to have a mixture of owner occupied and tenanted, we quote for both. We
are quite prepared to accept enquirers for all types of split property, Purpose
built or Conversions, We will even consider converted factory premises etc.
Many people approach us for an Individual Flat Quotations without realizing that
their property is already covered, we do not want to waste your time and money
so if you are considering asking us for a quotation for an individual Flat in a
block ( which we will do) you should check first of all that you cover has not
already been arranged for you. If you are just purchasing a Flat, your solicitor
or legal adviser should be able to help with this. The following notes may help
you....
When you purchase a flat you normally purchase it on a leasehold basis, that is
to say you are buying the right to occupy your Flat for a set number of years.
99, & 125 years are fairly typical terms. You have rights to use the common
parts and usually the garden area if there is one .You do not own the building
or the land on which it stands. This is owned by the Freeholder of the Building,
at the end of your lease term your Flat will return to him or her. The terms of
your lease will outline the Freeholders responsibilities which will usually
include, arranging the insurance which is often billed out to you with your
services charges.
Often it is difficult to locate the freeholder of the property and individuals
resort to arranging their own covers, this is not the advised way to approach
the matter and if at all possible, you should seek to group together with the
other leaseholders to arrange a common policy. Many leaseholders are now joining
together to form management companies with a view to buying the freehold of the
building and thus affording them the right to arrange their own insurances.
The government introduced legislation in 1993 giving lessees, if they satisfied
certain qualifications, the right to buy their freehold of the block and this is
now proving to be most popular
What Covers are Available? - Buildings insurance will be provided with
the range of perils that you would expect to receive under a normal
home
insurance policy, the wording should satisfy your mortgage lender.
Each flat owner should inure there own Contents
under their own separate policy, under the Block of Flats Building policy it is
possible to insure communal contents only. if your building contains a lift, you
will have a statutory requirement to insure it for a minimum of Inspection only
cover. This is usually referred to as Engineering Insurance cover. By
purchasing a policy from an insurer, periodical visits will be made by an
engineer to make sure that then lift is safe. The report will contain
information which you can pass to your maintenance company who can then carry
out any necessary work .
For insurance purposes, we consider buildings to be
classed as blocks of flats if they are in multiple occupation and each unit is
self contained. Bedsits or property where there are shared facilities such as
the kitchen or bathroom as usually classed as houses in multiple occupation or
HMO. With many modern style flats developments, blocks of flats are
sometimes mingled with terraced house and perhaps leisure facilities such as a
gym. If this is the case, we will need full details but of course will still be
able to offer quotations. Tower Blocks can be in towers, converted houses
or even old industrial buildings, they are sometimes known as apartment blocks
and in some cases may be referred to as MDU which stands for multiple dwelling
units.
We can also provide quotations for Directors and Officers Liability cover. This
type of contract is becoming very popular with residential management companies.
Managing your block can be a time consuming task, almost always unpaid and the
majority of people do not realize the difficulties and pitfalls that can arise.
Regrettably, the law recognizes no basic difference between people running a
residential management company and those running a large company with lots so of
staff. Directors and Managers can be held personally liable for the financial
consequences of any of their actions and errors relating the managing of the
building. By purchasing this type of cover, you can obtain protection against
claims made personally against you. Many people are now refusing to sit on
management committees without this insurance cover being in place.
History of Tower Blocks and Blocks of Flats - Tower blocks as they are
known in the United kingdom, were first constructed at the end of the second
world war. German aerial bombing had laid to waste many inner city areas and
tower blocks were seen by many as a quick fix to housing problems. In general,
at this time, the UK housing stock was in poor condition anyway and many slum
clearance schemes were initiated to rid the country of crumbling properties with
poor or no sanitation. Slums and bomb sites were cleared and in their place,
tall flats were constructed. Initially blocks were well received, they were
modern and often had excellent views and were popular with people whip were used
to living in poor quality housing stock. Alas the initial build quality was poor
and in time the early tower block became associated with low quality housing and
certain areas started to develop social problems relating to "high rise"
living. In recent years local authorities have done much to improve blocks of
flats and now many have been completely renovated and former council homes are
being sold for considerable sums of money. In London many council designed
blocks have achieved almost iconic status, in particularly, the Barbican with
its wonderful views and close proximity to the city and west end now commands
vast sums of money whenever apartments do come on to the market.
Because of the social problems
often associated with blocks of flats living and the poor build quality, they
fell out of favour and hardly any were constructed for a period of 30 years,
however they are now becoming popular again and there are now many new
developments in Britain's major cities. Flats are popular with young
professionals and are seen as the "chic" way to live in a city. Developers have
come up with a number of buzz words to help sell flats and words such as
"Apartments" or "Manhattan Apartments" or" Loft Style" are much in evidence.
Also popular with the young and reasonable wealthy are flats made from former
industrial premises, these are seen as having more character and many former
brick works, warehouses and even food processing factories have been turned in
to highrise flats. In the major cities any property located by a river or canal
is at a premium and these places are seen as very desirable places to live.
For landlords flats in blocks
represent a way to acquire
buy to let property cheaply and in the main as
easier to rent to the younger generation who do not require the same amount of
space as families.
Blocks of Flats from converted houses started to become popular in the 70s , the
buildings themselves in the main had fallen in to disrepair, and the amount of
money required for their up keep simply was not available. If you manage to find
an old photograph book of London from the 50s you will be amazed at the poor
condition of the houses in many areas which are now considered to be the height
of fashion. The demand for these large houses no longer existed but there was a
need for smaller style properties as many people moved to the cities in the
search of work. These large houses were ripe for conversion particularly and
often developers could pick them up for next to nothing. Today many grand old
Victorian and Edwardian houses have been converted in to flats thus aiding the
regeneration of city areas. Some large houses are now looking as good if not
better than the day when they were originally constructed.
Flats in cities were popular
as anywhere where space was at a premium and there was a need for housing,
other locations that favour this type of development are near hospitals and
universities where there is always a need for properrty for rental purposes.
Tower Blocks of course have an economic advantage in areas with high population
density and in cities where property prices are generally higher, blocks of
flats represent an affordable way for people to get on the hosing ladder. Flats
are also popular with landlords in cities as they are cheaper and easier to rent
and better suit the needs of a younger more itinerant work force. In contrast
with other forms of housing such as low rise homes, flats can accommodate a
greater number of inhabitants per unit of land they occupy and can help reduce
the cost of local infrastructure.
Scotland has had its love affair
with tenement buildings for much longer, during the 19th century tenement
buildings become the main type of dwelling house in Scotland's developing
industrial cities, Edinburgh has tenements dating back to the 15th century.
Although Glasgow as a city has the greatest density of high rise apartments in
the United Kingdom, the traditional Scottish tenement building is of more solid
construction. Sandstone and granite were used and the buildings were usually
between there and five stories in height. To most people the word tenement is
associated with inner city poverty and to this day in many parts of the world
this is true, however in Scotland its tenement buildings are of excellent
quality and when any come on the market, they fetch a high premium.
Assetsure are able to cover all
types of flats and in Scotland where the freehold and leasehold laws are a
little different, we can also consider individual flats in apartment or tenement
blocks. Whilst in the vast majority of the united kingdom, the freeholder will
arrange for the whole building to be covered, there are some regional
variations, in parts of London or on Tyneside where they have " Tyneside"
leases, a more detailed knowledge of blocks of flats insurance is
required, if you contact our office, we will be pleased to assist you.
Safety First at your Block of Flats
In October 2006, new legislation was enacted to
help improve fire safety at premises. The new rules and regulations have caused
a little confusion for our blocks of flats customers as they were not
specifically aimed at residential premises. However with over 40,000 fires a
year resulting in hundreds of often unnecessary deaths, fire safety should
always be taken seriously.
The fire safety laws relate to any person or
group that are
- responsible for business premises
- an employer or self-employed with business
premises
- responsible for a part of a dwelling where
that part is solely used for business purposes
- a charity or voluntary organisation
- a contractor with a degree of control over
any premises
However, if you dig a little deeper in the
requirements you will see that there is legislation that effects the common
parts of buildings ( flats & maisonettes) although it also suggests that it is
not intended for domestic dwellings. We feel this is a little ambiguous but
suggest that a responsible member of your blocks of flats management committee
be out in charge of fire safety. Again failure to make sure that your block of
flats is keep clear of hazards could possible lead to a directors & officers
claims.
Implementing a basis Blocks of Flats Fire safety
procedure is a good way to start and perhaps a leaflet could be drawn up and
passed to all residents of the block. Here are some tips.
- Make sure you have adequate means of escape
from the building and that they are keep free and clear of rubbish.
- do allow residents to store items on
walkways, landings or escape routes. Remember, these items could catch fire
and block an exist
- Do not allow rubbish to build up near your
block of flats or allow combustible materials to be stored in the vicinity
- Are your escape routes adequately lit
- Do you have signs that the point to fire
exists
- Do you have a system in place of giving early
warning of a fire to all residents.
- Installing fire & smoke alarms at the
premises can significantly help improve safety. You will need at least one
smoke alarm per floor and they must all communicate with each other
- The detectors should be sited within7.5
meters of all doors to habitable rooms
- The detectors should be ceiling mounted and
at least 300 mm from light fittings
- Detectors should not be fitted near heaters
or air conditioning units.
Additional Covers
If your building is a block of
flats, there is a category of insurance that is sometimes overlooked when
requesting blocks of flats insurance. Although this insurance can in its
simplest form, just be a service not an actual insurance cover, it is often
provided by an insurance company who are generally recognised as being competent
to provide the service.
Your block may contain certain equipment that will have a statutory inspection
requirement. If you fail to have this equipment inspection, you will breaking
the law and thus arrangements must be made for a competent person to carry out
the inspection process.
The most common types of equipment that will need to be inspected include
passenger or goods lifts, car parking systems and pressurised boiler systems.
Any stair lifts that are fitted to the building will also have to be inspected
By engaging the services of an
insurance company to carry out an inspection at your block, you will be
obtaining the knowledge and expertise of an organisation that can help you
identity all items at the location that require inspecting. Diferent items need
to be inspected at different intervals and on their first visit to the premises,
the insurance company surveyor can make a list of the items and schedule dates
for return visits.
Within a short period after inspecting your block of flats, a written report
will be provided to you which will highlight any faults within the equipment
tested and especially, highlight any items that need immediate attention because
of safety issues.
Not all equipment at your premises will have a statutory requirement but that it
is not say it should be inspected. Electrical items at the premises can also be
inspected and in the main, the insurance company can often include these items
in their service ( A separate engineer may have to call)
Insurance companies usually calculate their charges for inspections on a per
item basis or in some cases, where there are a number of items on a time basis.
As the inspection is really a service not insurance, the charge is subject to
VAT at the current rate.
The roots of engineering
insurance go back to 1854 when the Steam boiler Assurance Company introduced an
insurance cover that was combined with an inspection service . This cover over
time has been extended and developed so a whole host of other items as well as
boilers can be covered.
As well as the the inspection
service, insurance can be arranged with will cover the items against certain
extraneous perils which are not normally covered by a standard material damage
policy. These covers are usually referred to a s sudden & unforeseen damage and
can also include breakdown. If you take out these additional covers, they will
be subject to insurance premium tax not VAT
