Insurance

Buildings Insurance

The buildings insurance covers damage to the buildings. Please note that this insurance does NOT include cover for residents' contents

2018
2017 2016 2015 2014 2013 2012 2011 2010 2009
2008 2007 2006 2005 2004 2003 2002 2001 2000

Policy Documents

The insurance policy sets out the details of the buildings insurance contract.

2018
2017 2016 2015 2014 2013 2012 2011 2010 2009
2008 2007 2006 2005 2004 2003 2002 2001 2000

Terrorism Insurance

The Upper Tribunal (Lands Chamber) considered the necessity for terrorism insurance in the case of Qdime Ltd and (1) Bath Building (Swindon) Management Company Ltd (2) Various leaseholders.

The property is a purpose built block of flats insured by Qdime Ltd, the freeholder (referred to as the Landlord) in accordance with the Landlord’s lease covenants. The lease obliged the Landlord to insure the building against “.. the usual comprehensive risks in accordance with the CML recommendations … from time to time”.

The Upper Chamber determined on the basis that one of the defined perils in the CML recommendations (Council of Mortgage Lenders Handbook section 6.14.2) includes explosion and that insurance should be provided against an event, not any particular method, causing the event. Therefore terrorism insurance was required.

The Head Lease for Kimmeridge Close requires the company to "keep all buildings for the time being on the Demised Property insured against loss or damage by fire storm impact or aircraft and such other risks as are included in a comprehensive policy". Whilst this is less prescriptive than the lease considered by the Upper Tribunal the directors have nonetheless taken out separate terrorism cover from 29 June 2015 as it was not included within the comprehensive buildings insurance policy taken out at the time.

Terrorism - Schedule

The schedule sets out the total sums insured and period of cover.

2018 2017 2016 2015

Terrorism - Policy Documents

The policy sets out the details of the insurance contract and claims procedure.

2018 2017 2016 2015

Directors & Officers Insurance

The D & O Policy is designed to protect leaseholders who volunteer their services as directors of the management company.
People appointed as Directors and Officers hold positions of trust. They will be liable for any act, which is negligent, outside their authority, or in breach of their own responsibilities. Directors and Officers should be aware that they can be personally liable for their acts and without insurance are effectively risking their personal wealth and the future of the association, since the financial implications of a legal action can be disastrous.

The residents in their capacity of a Director or Officer face numerous duties and responsibilities, even if the services of a managing agent are employed, some of which are defined in law. These responsibilities include the need to ensure that:
• The property is safe and Health & Safety legislation is complied with.
• Any contractors used to carry out maintenance at the property, do so properly
• The finances are in order as the resident can be held personally liable for the debts of a company if “he knew or ought to have known that there was no reasonable prospect that the company would avoid going into insolvent liquidation”.
The law does not distinguish between the director of a residents management company and that of a major corporation. Ignorance of the law is no defence, so it is important for any resident wishing to take a position of responsibility, to know the liabilities that they face. Especially as these liabilities may be unlimited.
Types of Exposures
• Health & Safety – fire safety, electrical and mechanical equipment checks
• Insolvency Act
• Companies Act 2006
• Disability , racial and sexual discrimination
• Dishonesty to fellow directors
• Failure to supervise
• Failure to appoint bona fide contractors
• Defamation (libel & slander)
Due to the above exposures D&O cover is needed to insure the directors and officers of the Residents Management Company against any claims made against them.

Directors & Officers Insurance

The D & O Policy is designed to protect leaseholders who volunteer their services as directors of the management company.

2018 2017 2016 2015

Directors & Officers Policy Documents

The D & O Policy is designed to protect leaseholders who volunteer their services as directors of the management company.

2018 2017 2016 2015

Claims Procedure

Following an insured loss a claim should be submitted to the insurance agent by "the claimant".

If the loss is to the communal areas the claimant will be the management company.

If the loss is to an individual flat the claimant will be the leaseholder.

The insurance agent will direct the claim to the insurance company which will often appoint a claims negotiator/loss adjuster to deal with the claim on its behalf.

The claimant will usually be requested to submit two quotations for repairs/replacements and following agreement by the insurers, contract for the repairs/replacements.

Once the repairs etc are complete the claimant should pay the invoices and submit the receipts and invoices to the insurers for repayment. It is possible that the insurers may pay the invoices direct but they are under no obligation to do so.

Should there be a deductible excess, this amount will be deducted by the insurers before the claim is settled. Where the damage was caused by a Third Party the claimant should recover the excess sum from the Third Party.

N.B. Please refer to the Policy document for full details of cover and claims procedure.