Reducing building insurance cost requires hard negotiation with landlords because we fight for our customers to save their money. At Ropeworks we have reduced the buildings insurance cost by £14,000 a year
Reducing building insurance cost is our aim at Revolution Property Management. Thie was a key focus when we were appointed to manage The Ropeworks apartments on little Peter Street in Manchester last year. At the time of their appointment we expressed concerns to the directors of the building that their building insurance cost seemed excessively high. Reducing building insurance cost for this site was our aim after comparing the cost of this buildings insurance against sites where we place the insurance outside of the control of the landlord.
Under the terms of the lease the building could not self-insure but had to allow the landlord to place the insurance. This is commonplace in many apartment blocks (worth noting if you are currently buying an apartment).
Under the terms of this lease the apartment owners had to pay whatever bill was put in front of them by the landlord. There are options available such as taking the case to tribunal to assess the cost of the policy but leaseholders need a company like Revolution Property Management to put these cases together.
Reducing building insurance cost is imperative. Did you know that building insurance costs can be inflated by up to 40%?
We don’t think increased building insurance costs are fair and as such whenever we take over a new building we always challenge the building insurance cost or place the policy somewhere else when it expires. In terms of the landlord placing / renewing the building insurance policy the starting position is to always engage with the landlord to see if any resolution / reduction can be gained.
In this instance the landlord was of the position that the building insurance policy was completely appropriate in cost and cover for the building, and as such they were not willing to look at this cost any further.
This was a position we could not accept for the owners of apartments at The Ropeworks.
The process involved Revolution Property Management gaining identical like for like quotes from our own broker for the site (Element Hinton). We then used our appointed firm of solicitors (LMP Law) to deal directly with the landlord so there was an understanding on their part that this issue was not going to go away.
After much negotiation a final year on year reduction of £14,000 was achieved.