In many residential blocks of flats in London, the responsibility for insuring the property lies with the property management company, who need to insure the fabric of the building and the policy holders' liabilities. It's a complex area — here are three key insurance risks for residential property managers in London.
1. Riot, civil commotion, and vandalism
Damage to buildings' main structure caused by riots, civil commotion, group vandalism and looting is usually covered by a standard property owners policy.
2. Ageing Victorian building infrastructure
London is awash with Victorian properties, many now residential flats, housing 54% of London's population (1.8 million people). Despite stunning features (high ceilings, feature fireplaces, bay windows), these properties generally have old pipework and sewer systems that can't cope with increased usage, particularly where properties have been converted into multiple residences.
3. Notifying insurers about works/renovations
The residential property manager needs to inform the insurance company for the block of any works taking place, including: whether hot works are due (may require a hot works permit or increase excess due to fire risk), the contract value, and who is responsible for insuring the works. Most property owners' policies include cover for contract works up to a limited value; beyond that, the contract works limit may need increasing (with additional premium), a separate policy purchased, or the contractor's own cover relied upon — though the block owner taking out appropriate cover directly is recommended.