Upon insuring a block of flats, you will very quickly find that you require specialist insurance –after all, how else could you insure numerous homes under one policy? With more homes comes more responsibility, and with more responsibility comes greater potential for problems. There are various specialist insurances that are usually used to insure a block of flats:
Buildings Insurance – this is the most well-known type of insurance, and covers the bricks and mortar, the internal and external features and any outbuildings. This is the ‘main’ type of insurance purchased, and covers the building and contents against any damage.
Directors and Officers Insurance – sometimes, a block of flats is managed by a Residents’ Management Company (RMC). This type of insurance protects the directors and officers of RMCs against any legal proceedings or claims made against them.
Lift Inspection and Machinery Breakdown Insurance – this covers any lifts or electronic equipment in communal areas – e.g. lift, automatic doors and communal boilers so as to ensure that any repairs or claims are covered.
Each policy listed above, whilst you may not have previously considered them, do not seem unreasonable. After all, directors and officers need protection just as much as lifts need to be maintained. So, why do people balk at the idea of investing in terrorism insurance? At this point, you may be wondering why terrorism cover is even necessary, especially following the earlier mention of an ‘All Risks’ buildings insurance policy. Surely any damage would already be covered? In actual fact, this is not the case. So, should the worst happen and you hadn’t invested in Terrorism Cover, quite frankly, this would leave you in an unimaginable position.
In a day and age where the unexpected has become the norm, it is wise to protect yourself against all possible avenues. And, whilst terrorism is definitely a harrowing topic, it is a real threat. Terror threat levels have been fluctuating between ‘severe’ and ‘critical’ since August 2014, with the capital and provincial cities being considered at the highest risk. It has never been more important to be aware of how to protect yourself against the unexpected – and being aware of what is required to protect your home is a logical place to start.
As stated in a recent article by the Big Issue, it is often the case that residents initially view terrorism insurance as an opportunistic product – and whilst this is understandable, this approach is often mistaken.