Big saving on insurance premium
Management of a block of flats in Westminster
Fry & Co were asked to take on the management of a block of flats, but before the handover date and before the outgoing managing agents had been informed of the change, the buildings insurance came up for renewal. Due to a recent large claim for escape of water, the property was faced with a large hike in premium of over £22,000. This represented an unpalatable 260% increase, and was made worse by a new insurance excess for escape of water of £30,000.
We were asked by the directors of the freehold company to seek competitive quotes. We approached our brokers through whom we place our block policy covering the majority of our managed properties. Due to our good relationship with the broker and underwriter – and thanks to our favourable claims history across the portfolio, we were able to obtain a quotation on a like-for-like basis which represented only a 12% increase on the previous year’s premium. Furthermore, we were able to negotiate an excess for escape of water of just £5,000.
The result was a very happy client, a saving of over £21,000, which equated to a number of years of our proposed management fee. And we had not yet even commenced our management role.