Services to Tenant Management Companies
Blocks of Residential Apartments
Blocks of Residential Apartments do have special insurance needs. An off-the-shelf policy may not provide sufficient cover, and cutting corners on insurance can have consequences at a later date, creating extra work for you and certainly compromising your relationship with service charge payers.
As a specialist in buildings insurance for blocks of flats, Ferndale can negotiate policies specially tailored for your block of flats at competitive rates. As we work with a specialist panel of leading insurers, we are able to provide comprehensive cover at competitive premiums.
Our cover will typically include:
- Accidental loss and damage to buildings, outbuildings, paths and fences
- Storm damage to hedges, gates and fences
- Loss of metered water
- Accidental damage and tree root damage to cables and underground services, including septic tanks
- Cost incurred in tracing and accessing damaged service pipes
- Architects' and surveyors' fees during reinstatement
- Loss of rent and alternative accommodation - including pets
- Replacement locks following loss of keys
- Gardening equipment
- Damage to gardens caused by emergency services
- Legal fees for removal of squatters
- Removal of bees or wasps' nests
- Cover for temporarily unoccupied flats
- Contents of communal areas of the building, including carpets (not on all policies)
- Property owners' liability
- Employers' liability - certain information is required if employer's liability insurance is required
- Terrorism cover is available on request
- Option to pay by monthly installments
- Index-linked adjustment of sum insured
- 24-hour glass and lock replacement (on some policies only)
Leaseholders Right To Take on the Management of their Property
The Commonhold and Leasehold Reform Act 2002 gave a majority of Lessees the right to take over the management of their block of flats. (There are various exceptions where there is a resident landlord etc).
Essentially it allows Lessees to take over their managment using a special form of company (a Right to Manage Company — RTM) with a prescribed form of Memorandum and Articles of Association. The RTM Company has the Lessees as its principal shareholders, but the landlord is also able to own a share. The company has a Board of Directors who are elected by the Members/Shareholders of the Company.
The RTM Company is responsible for carrying out all the landlord's obligations under the terms of the respective leases and is also liable to notify the Landlord of any breach of lease terms.
It is important to appreciate that the RTM Company will be taking on some very serious obligations of the Landlord. These responsibilities may include the responsibility to insure the actual buildings and separately to maintain and insure the lifts, boilers, window cleaning gantries, electric gates, swimming pool machinery etc. There may be extra costs relating to running the Company and we would advise the Directors to obtain "Directors and Officers Liability Insurance". If a professional Managing Agent is not engaged, the RTM Company should, in our opinion, also obtain "Professional Indemnity Insurance" to protect against negligence claims from both residents and visitors.