We often report on the crucial role a Property Factor has to play in assisting homeowners with their responsibility to ensure their common property is properly maintained and protected. One of the key benefits of appointing a Property Factor is the placement of a common buildings insurance policy and the sad news story of a fire in East Kilbride has highlighted just how vital this can be.
On 20th October 2023, a devasting fire blazed through a row of six terraced houses in Whitelee, East Kilbride, rendering each property completely unsafe to live in. Five of the six owners have been fighting for nearly 10 months to have the development demolished and re-built but it transpires one of the individual houses was not insured and this owner is therefore refusing to authorise the demolition – even despite the other owners offering to cover the reinstatement costs. All six families have been living in temporary accommodation ever since, while resolution is desperately sought.
This is a situation we would hope no one ever has to experience and it is a comfort to our homeowner customers that, as their Property Factor, we are able to offer to arrange the placement of a communal insurance policy. This avoids homeowners having to make separate individual arrangements, where they could be unaware if cover is in place elsewhere in the property; in the event of a common claim there would be no need for payment of multiple excesses and it removes the worry that insufficient cover is in place. Not only does a common buildings insurance policy provide reassurance to our customers that their property is protected at all times – even at change of ownership – but the vast majority of our customers have not seen their insurance premium rate increase since 2015. In addition, our broker, AON, has even successfully managed to secure a 5% premium rate decrease for the majority of block policy renewals for 2024-2025.
At HPMS we make this process easy – our broker reviews the market, identifying the most appropriate arrangements, and we then simply collect each homeowner’s premium share through their quarterly common accounts. Our factoring teams are also happy to support customers through any claims handling processes and we can also assist with any insured common repair works.
The Under One Roof website has a wealth of information to help homeowners understand the responsibilities of common ownership and this helpful guide to Common Buildings Insurance is well worth a read.
If you have any questions on your insurance or how we can help you and your neighbours, just contact your local Property Factoring Team and we will be delighted to assist you.
