What is block buildings Insurance?

Insurance of this nature is usually the responsibility of the Management Company and as such the following should be noted:-

  1. The Insurance Cover relates to RECONSTRUCTION cost – and not the sale value of the flat
  2. INSURANCE valuations are prepared by Building Society / Mortgagees Valuers prior to the mortgage being granted. They are not always correct.
  3. Solicitors may sometimes write to requesting building insurance cover is increased to the purchase price at the time of a change in ownership.  This is not correct.
  4. Merlin Estates will analyse Insurance Cover at the time of such queries to ensure the level of cover is correct, and undertake the necessary Insurance Valuation.  Discussions with Solicitors, Building Societies, etc, will be undertaken thereafter to ensure un-necessary levels of Insurance Cover are not required.
  5. Over insurance provides no benefit to the flst owners, but it will result in higher Insurance Premiums and thus higher costs to the flat owners.
  6. Insurance Companies and Insurance Brokers rely upon instructions given to them as to the level of cover required. They cannot themselves advise as to the level of cover to be implemented; an Insurance Valuation would be needed.
  7. Public Liability Insurance should also be included, to provide security against damage to property or persons arising from actions of employees of the Company or any deficiency/damage to the communal areas controlled by the Company.
  8. Copies of the Insurance Schedule are available from Merlin Estates upon request

Merlin Estates Ltd make no additional charge to the Management Company or flat owners for attending to Insurance matters

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