Is the property containing your flat adequately insured?

We've asked the experts with Hillcrest Estate Management

Name of expert: Adam Coombs
Job title: Managing director
Contact information: 0117 973 0600
Length of time in company: 16 years
Main responsibilities: Overseeing the company and cladding matters
Company name: Hillcrest Estate Management
Contact information: 0117 973 0600
5 Grove Road, Redland, Bristol, BS6 6UJ

Adam Coombs

We always advise our clients to ensure they have regular rebuild valuations carried out on their property. This is to ensure the Declared Value of the building is adequate and would match the physical rebuild costs. Construction prices regularly change and have certainly increased significantly in recent years so you could find your building is underinsured. If this is the case and you were to suffer from a large insurance claim, you could find that the insurers will not pay out the full amount and will reduce their pay out by the proportionate amount the building is under insured. This could have huge financial consequences for leaseholders.

We carry out these assessments for our clients every three years in line with RICS guidelines to prevent insurers applying these averaging clauses. This ensures that any risk is suitably managed. We can also carry out these surveys for non-Hillcrest clients. If you are interested, please feel free to contact us.

There are often other clauses that need to be investigated with any insurance policy. A recent concern for insurers is the practice of ‘Airbnb’. Properties containing flats which use ‘Airbnb’ may find they will need to pay higher premiums and failure to declare this practice could lead to the policy being void and claims not being paid. With the insurance being one of the most expensive parts of a Service Charge Budget, it is crucial to ensure the best cover is obtained. We have a block policy which is extremely comprehensive and has been tailor made to suit our clients.

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