Common Insurance
Insuring your property under a common buildings policy might not always be the cheapest way to insure your investment, but it is without doubt the best method for common blocks and flatted developments. It is why Deed of Conditions (Title Deeds) places obligations on owners to collectively insure under a single policy, through the managing agent.
Commercial Units/Shops insured under Residential Common Block Policy
Where we insure shops or commercial units under a ‘residential property owners policy’, as required by the Deed of Condition, commercial unit owners need to be aware that the following types of cover are not available to them as standard under these types of policies:
- Loss of Rent
- Terrorism
It is not possible to include these types of covers under a residential policy, without a substantial increase on premium which will affect all owners insured under that policy. The advice we have received is that it is more economic for commercial property owners to arrange their own policy to cover terrorism and loss of rent for their premises.
Residential Common Block Policy
A copy of the full policy wording effective from 31 October 2020 is available in PDF format here
If you need a paper copy of the policy, or summary of cover detailing your sum insured and annual premium please contact us at insurance@speirsgumley.com
Insurance Reinstatement Value
Your home is likely to be the biggest investment you will make in your lifetime, so it’s really important that you insure for the full reinstatement value, against all general risks. BCIS (RICS – Building Cost Information Service) recommends that property sums insured are professionally revalued at least once every 5 years. Further information is available here from BCIS. Speirs Gumley can obtain quotations from professional valuation surveyors, on behalf of development owners, but bear in mind that often we don’t have the authority to do so without explicit (majority) consent. If you are concerned that you may not have had a revaluation in the past 5 years, or that your sum insured does not meet current reinstatement value, please contact us to request quotations.
Insuring for VAT
We are often asked by clients as to why the building sum insured includes an allowance for VAT. The decision on whether to insure for VAT within your insurance Reinstatement Value can vary from building to building and can be complex, depending upon a number of factors. Specialist advice is required which we as Property Factors cannot provide directly. To help guide you, we asked an independent broker to provide advice on this from a suitably qualified person. You will find advice here from Cardinus, a leading health, safety and risk management specialist. Based on this advice we recommend to the vast majority of residential building owners that they include for VAT within their building sum insured to avoid the potential for average being applied to claims.
Escape of water
Escape of water is the most common reason for insurance claims. Our brokers have prepared a guide to help you understand why claims are increasing and what you can do to minimise the risk. You can download the guide in PDF format here.
Insurance Act 2015
You can download our information guide in PDF format here.
Insurance Commission
You can download our Q & A in PDF format here.
Play Areas
We don’t insure play areas for material damage because our experience is that the cost of insuring potentially outweighs the benefit, but if owners prefer it to be insured we will be happy to do so at additional cost. If you require any further information email insurance@speirsgumley.com
How to make a claim
Details of how to make a claim can be downloaded in PDF format here.
Our preferred insurance contractors
Should you require the services of a specialist insurance contractor details of our approved contractors are listed below. You are not obliged to use these contractors and may obtain estimate(s) from your own chosen contractor. Please note that a minimum of two estimates are required for any claims if the anticipated costs exceed £1000.
These contractors cover Glasgow, Ayr, Prestwick, Edinburgh, Stirling and Greenock.
- Columbus Facilities – 0141 952 2530
- Robb Reinstatement – 0131 561 4489
Insurance Claim – Notification of Loss