In all Multi Unit Developments the buildings are generally insured under a policy commonly known as the Apartment block policy. All apartment owners and their lending institutions if applicable are noted as interested parties on the block insurance policy. The premium is paid annually by the management company and collected as part of the service charge budget. It is important that the buildings sum insured or Reinstatement Valuation is calculated by a suitably qualified surveyor and reviewed once every two years.
What is covered?
In some cases, claim limits or exclusions apply. It is also important to understand that the policy is separate to landlord’s private contents and public liability insurance associated with the internal of their private units. Landlords should request a copy of their Block insurance annually from their managing agents.
The following is a summary of common particulars of a typical Apartment Block Policy.
Material damage
- Damage to the structure of the property- Flood, storm, structural etc.
- Damage to grounds and landscaped gardens
- Fire brigade charges
- Loss of metered utility supplies
- Replacement of locks and keys
- Trace and access
- Contents cover for common parts of the building
- Alternative accommodation in case of damage
Loss of rent receivable
- Loss of rent
Liability
- Employers liability
- Public liability
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