Individual Policies

Individual policies are polices arranged only for one Residents’ Management Company or Block of Flats. These polices are rated by underwriters on their individual merits, for example property location, sums insured and claims history.

Block Policies

Block policies are a single policy for your portfolio of properties. A simple way of managing the insurances of a larger number of properties under the control of your Residential Management Company clients is under a single policy in the name of your own Property Managing Agent company.

This document would normally contain a schedule of the properties covered (within which terms may be varied on individual properties).  Additions and deletions would either be by specific instruction or by monthly or quarterly declaration.

As you would be the Policyholder, your staff could provide instructions, negotiate terms and handle claims on behalf of your client Residential Management Company (in certain circumstances, interest free monthly premium instalments may be arranged).

+    Insurance becomes a “once a year” job.

+    Premium “volume” discount applies for good claims experience.

–    Large or numerous claims involving the “few” could adversely affect the premiums of the “many”.

Common Renewal date policies

Common Renewal date policies are the usual alternative to “Block Policy” arrangements is to have individual policies for each Residential Management Company, in their own name.  This allows selection of the most appropriate cover and Insurer for every client.  However, the insurance element of your management could become a “year round” task.  This may be appropriate if your Residential Management Company’s financial reviews are conducted throughout the year.  Alternatively, if your systems allow, the gathering of individual policies to a “common” renewal date would offer more efficient handling of insurance matters and if all policies are with the same Insurer, “volume premium” discounts would apply.

+    Insurance becomes a “once a year” job.

+    Premiums for “low claim” policyholders are not affected by those with large or numerous claims.

+    Each Residential Management Company has its own policy document (rather than an individual Schedule).

–    Increased levels of paperwork. A senior member of Residentsline would be happy to discuss the different Financial Conduct Authority Regulatory implications in respect of the above and other options if required.