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

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