Changes to the Association’s Block Buildings Insurance Cover
Cloch Housing Association is committed to improving our services, including those offered to our factored owners. We are reviewing our arrangements for factoring to ensure that we are meeting our legal requirements as your factor, and that you are meeting your legal requirements as an owner.
One area that we are concerned about is Buildings Insurance. Previously we have offered our policy to all tenemental factored owners, but have only covered those who have contacted us to take out the policy. Based purely on risk, this process cannot continue as we both could be left exposed to owners who simply do not have the appropriate cover in place. This could leave us with problems with future claims.
All Tenemental Factored Owners are covered unless you opt out
As a result, we intend to cover all factored owners who live in tenements with effect from 1 April 2018 unless you provide proof of your own insurance policy so that we can confirm that your policy extends to cover your obligations to the common fabric and areas of the building, as per your Title Deeds. Under the Tenements (Scotland) Act 2004 (Prescribed Risks) Order 2007, it is a legal requirement for you to make sure that you are adequately covered.
Section 18 of the Tenements (Scotland) Act 2004 makes it clear those risks which owners are required to insure their property against. These are as follows:
a. Fire, smoke, lightening, explosion, earthquake;
b. Storm or flood;
c. Theft or attempted theft;
d. Riot civil, commotion, labour or political disturbance;
e. Malicious persons or vandals;
f. Subsidence heave or landslip;
g. Escape of water from water tanks, pipes, apparatus and domestic appliances;
h. Collision with the building caused by any moving object originating outside the
i. Leakage of oil from fixed heating installations; and
j. Accidental damage to underground services.
The Association’s Block Buildings Insurance Policy is due for renewal on 1 April each year. The cost of the annual cover for 2018/19 is £54.74 and this covered the period 1 April to 31 March.
Unless you provide us with proof of your own cover we will send you an invoice in March 2018 enclosing a summary of your insurance cover.
The average rebuild cost of a property has been based on £124,586, and the total cover for all factored stock is £14,452,000 If you feel that £124,586 is not sufficient to cover your property rebuild costs, please contact us to discuss further (any additional cover would increase your premium).
After tendering for our insurance earlier this year, we have new insurers, Bruce Stevenson, who have carried out a cost comparison exercise to demonstrate the significant savings that are made by taking our buildings insurance policy. In order to show the cost benefit of having your buildings insured with us, our insurers looked at costs from other providers as at 7 March 2018, the following results were obtained based on an average value of £124,586.
Insurer Premium including tax
Zurich Insurance £213.14
AXA Insurance £403.89
Covea Insurance Plc £439.47
Royal Sun Alliance £506.21
We are therefore confident that the cost of our cover is competitive.
If you have any queries or would like to discuss any element of our Block Buildings Insurance Policy further, please contact the Finance team on 01475 783637 or by email email@example.com.
If you need to make a claim in relation to the block policy we offer you should contact Bruce Stevenson directly on the number or email below:
Bruce Stevenson Risk Management Ltd, 76 Coburg Street, Edinburgh EH6
Tel: 0131 553 2293
Emergency/out of hours: 0845 0709500
• £100 to all losses other than subsidence which is £1,000.
• An excess to the communal building is £500.
A summary of the policy can be obtained by calling 01475 783637 and is provided annually with your invoice. If you need to see the full policy, it is available at our offices. If you require a full copy of the policy we will make an admin charge for this.
We also have in place Public Liability Insurance which is managed by the same insurance brokers (contact Bruce Stevenson as above).