E03: Insurance

Synopsis

This Guidance Note:

• Looks at the legal rights of leaseholders regarding insurance;
• Insurance commissions
• Outlines the Competition & Markets Authority - Market study into the 'Residential Property Management Services' sector (December 2014)
• Explains the RICS’s & ARHM's Code’s requirements in dealing with insurance commissions;
• Asks the question.. 'should insurance commissions be taken?'
• Explains the regulation of managing agents with regard to insurance;
• Explains the different sorts of insurance that are usually required for a block of flats; 
• Explains Reinstatement cost assessments;  

Advises on how to reduce the number of claims;

• Explains Flood Re Insurance; and 
• Overview of 'The Insurance Act 2015'

NOTE: Where reference is made to RMCs this also includes Right to Manage Companies (RTMcs).

Covering Topics

• Overview
• The Insurance Act 2015
• Leaseholders Legal Rights About Insurance
• Insurance Commissions
• The RICS & ARHM Codes of Practice - Dealing with Insurance Commissions 
• FCA Regulation of Insurance Activities
• Insurance and Lessee
• The Usual Insurances for a Block of Flats Main Types of Insurance Required
• Buildings Insurance
• Communal Contents
• Property Owners' Liability (Public Liability)
• Employers' Liability
• Legal Expenses
• Directors' and Officers' Insurance
• Plant Inspection and Breakdown Cover (Including Lifts)
• Terrorism Insurance
• Special Terms and Conditions
• Mid-Term Adjustments
• Insurer's Inception Survey
• Leaseholders' Content Insurance and Advice to Leaseholders
• Claims Handling
• Excesses and Exclusions
• Unoccupied Flats
• Subletting of Flats
• Reducing Insurance Claims
• Reinstatement Cost Assessments (RCAs - formerly known as 
• Building Reinstatement Valuations)
• RICS Practice Standards UK (reinstatement cost assessments of buildings 2nd edition, guidance notes)
• Declared Value
• Condtion of Average
• Definition of Value Added Tax (VAT)
• 'Flood Re' Insurance
• Further information