Block of flats insurance pitfalls
Block of flats insurance pitfalls hot topic = underinsurance
First thing- a very large and important topic at the moment is underinsurance.
As you know, last year has resulted in the costs of building materials rising due to, obviously, supply and demand issues and currently, obviously, there’s a war going on with Ukraine and Russia. All these things combined creates a perfect storm with regards to building costs and supply issues, etc.
That’s resulted- especially since the pandemic it’s resulted in costs going up, possibly between 20 to 30%, for different types of building materials. As a result of this, what we’ve got in the UK at the moment and Northern Ireland. It’s a lot of building materials, and buildings themselves, especially blocks of flats are now underinsured.
For example, if you took a high-rise block of flats in London that maybe costs a couple of million to rebuild, straight away, it’s 20 to 30%, underinsured and say that was to suffer a total loss such as a fire, you can do the math yourself.
You realize that if that property was to be rebuilt, well then, you’re 20 to 30% down on the total cost that you’d insure the building for. That’s creating an issue where insurers are coming in, surveying the damage and saying,
“Well, look, your property is underinsured here at the moment so we’re going to reduce your claim by 20 to 30%.”
I’d say that applies to total losses, but it also applies to even smaller claims, maybe there’s escape of water. If the building is 20 to 30%, under insured, and maybe you have a claim for a water leak, something like that, it may cause £5000 in a block of flats, it can even cost 20,000- the block of flats, quite easily.
It just simply means they’re going to reduce your claim or your claim’s pay out. That is a massive pitfall moment and there is a way around this. Obviously, when you get your renewal out, or customers get their renewals, they should be checking their sum’s insured, and they should be going to get the property surveyed.
It costs a couple of pounds to do that, we all know, but you know, the benefit in the long run that is obviously clearly there to see because if you’re underinsured, it means you’d all get your still claim settlement.
Underinsurance is the most important block insurance pitfall at the moment and it is literally on all insurance brokers lips.
We’re always telling our customers, you must check your rebuilding cost. It’s up to you, we are not surveyors, we’re insurance brokers so we can’t give any guidance as to what your rebuild should be, or what the rebuild cost should be. But we can obviously directly apply the importance of contacting a professional. There’ll be a Royal Institute of Chartered Surveyors that can recommend someone in your particular area. That would be the main pitfall at the moment, it’s simply underinsurance. that’d be the first point.
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Access to a wide range of insurers to source suitable insurance cover for your needs
Bespoke Insurance Schemes & Portfolio Policies available
We can tailor your policy to suit your exact needs to give you complete peace of mind
Competitive Premiums
Cover available for the buildings while the property is being converted, renovated or extended
Over 40 years experience working with the best insurers in the UK
Excellent communication so that you understand what risks you are insured against
Why choose the Property Insurance Centre
Independent broker with staff you can speak to by phone or online
Access to a wide range of insurers to source suitable insurance cover for your needs
Bespoke Insurance Schemes & Portfolio Policies available
We can tailor your policy to suit your exact needs to give you complete peace of mind
Competitive Premiums
Cover available for the buildings while the property is being converted, renovated or extended
Over 40 years experience working with the best insurers in the UK
Excellent communication so that you understand what risks you are insured against
Why choose the Property Insurance Centre
Independent broker with staff you can speak to by phone or online
Access to a wide range of insurers to source suitable insurance cover for your needs
Bespoke Insurance Schemes & Portfolio Policies available
We can tailor your policy to suit your exact needs to give you complete peace of mind
Competitive Premiums
Cover available for the buildings while the property is being converted, renovated or extended
Over 40 years experience working with the best insurers in the UK
Excellent communication so that you understand what risks you are insured against
Specialists in Commercial & Residential Insurance
We have over 40 years experience as Residential and Commercial Insurance Brokers. We find the right policy to suit your needs and understand the risks that a property owner can face in the course of ownership. We work closely with our Insurers to get the best rates and our experience and excellent relationships with them mean that we can provide cover for even the most difficult to place risks.
Whether you have an adverse claims history, a high value property or a large portfolio of properties, we can source suitable cover for you. Whatever your requirements, we can tailor a specialist property insurance policy to suit your exact needs and provide you with a range of quotes to choose from. Established in 1976, we are not a call centre but a specialist insurance broker with a traditional office mentality, where the client comes first.
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Contents
- 1 Block of flats insurance pitfalls
- 2 Block of flats insurance pitfalls hot topic = underinsurance
- 3
- 4 Insurance under one roof
- 5 We are specialists in many types of insurance
- 6 Underinsurance is the most important block insurance pitfall at the moment and it is literally on all insurance brokers lips.
- 7 Block of Flats
- 8 Unoccupied
- 9 Home Insurance
- 10 Residential Landlord
- 11 Land Liability
- 12 Commercial Property
- 13 Lockup Garage
- 14 Restaurant
- 15 Takeaway
- 16 Classic Car
- 17 Mixed Use
- 18 Tradesmen
- 19 Why choose the Property Insurance Centre
- 20 Independent advice by approachable staff online or by phone
- 21 Access to a wide range of insurers to source suitable insurance cover for your needs
- 22 Bespoke Insurance Schemes & Portfolio Policies available
- 23 We can tailor your policy to suit your exact needs to give you complete peace of mind
- 24 Competitive Premiums
- 25 Cover available for the buildings while the property is being converted, renovated or extended
- 26 Over 40 years experience working with the best insurers in the UK
- 27 Excellent communication so that you understand what risks you are insured against
- 28 Why choose the Property Insurance Centre
- 29 Independent broker with staff you can speak to by phone or online
- 30 Access to a wide range of insurers to source suitable insurance cover for your needs
- 31 Bespoke Insurance Schemes & Portfolio Policies available
- 32 We can tailor your policy to suit your exact needs to give you complete peace of mind
- 33 Competitive Premiums
- 34 Cover available for the buildings while the property is being converted, renovated or extended
- 35 Over 40 years experience working with the best insurers in the UK
- 36 Excellent communication so that you understand what risks you are insured against
- 37 Why choose the Property Insurance Centre
- 38 Independent broker with staff you can speak to by phone or online
- 39 Access to a wide range of insurers to source suitable insurance cover for your needs
- 40 Bespoke Insurance Schemes & Portfolio Policies available
- 41 We can tailor your policy to suit your exact needs to give you complete peace of mind
- 42 Competitive Premiums
- 43 Cover available for the buildings while the property is being converted, renovated or extended
- 44 Over 40 years experience working with the best insurers in the UK
- 45 Excellent communication so that you understand what risks you are insured against
- 46 Specialists in Commercial & Residential Insurance
- 47 Get In Touch:
- 48 We accept most payment types including:
- 49 UK Call Handlers & Dedicated New Business Team
- 50 Call Us on 0800 085 3761
