At Revolution, we continually fight to reduce costs. One key area which should be focused on is the cost of building insurance. There are normally two options in relation to placing the insurance policy in apartment buildings; one option being the freeholder has the right to insure the building, and the other being the Property Management Company on behalf of the building. If you are lucky the management company will have the right to insure the build.
If the freeholder has the right to ensure the building you have no decision-making over where the insurance policy is placed or its cost. The freeholder also has a right to earn a commission on placing the policy. We located one such situation where a commission of 45% was being paid.
Where we believe the policy cost is too high we will gain like-for-like quotes from our own insurers and then negotiate with the freeholder.
We have done this on a number of occasions and always achieved a reduction in the cost of the insurance on the building.
Where the management company has the right to insure, we take this to market as part of our block policy each year in September. We insure over 40 buildings on this renewal and so gain the best rates possible whilst retaining A-rated insurers only.
If you have concerns about your insurance we offer an appraisal service to quickly look at what you are currently paying and compare this to our base and against like-for-like buildings that we manage. If you click the button below this will take you to our review page.Try our insurance comparison option