# Block Insurance



## Vicki Tee (4 Nov 2011)

We used to have an estate agent employed to manage our block of houses/apartments until one of the residents decided she could do a better job. I had some alterations done on my house so I went to her to check if these would be covered under the block policy, she told me that only the common areas were covered and my house was not covered AT ALLl. I got insurance straight away. It is now due for renewal, but as it went up quite a bit I checked with the other insurance company to see what exactly the block policy covered and I was told the rebuilding of the entire block was covered so I didn't need the additional insurance. I now don't trust this woman with something as important as the insurance of my home and I have been unable so far to get a copy of the ploicy from her. What usually happens in these cases, do all the residents get copies? How will I know if she forgets to renew it? Would an estate agent have professional indemnity to cover something like that?


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## ontour (4 Nov 2011)

Vicki Tee said:


> What usually happens in these cases, do all the residents get copies? How will I know if she forgets to renew it? Would an estate agent have professional indemnity to cover something like that?



I have not seen that every member would get a copy of the policy but given the confusion, requesting a copy is perfectly reasonable.  There is no reason not to share it with you.



Vicki Tee said:


> Would  an estate agent have professional indemnity to cover something like  that?



Not sure where an estate agent fits in to your scenario?  DO you mean management agent?  It is the responsibility of the directors to ensure that there is insurance in place.

You refer to a house rather than an apartment or duplex.  Buildings insurance can vary based on type of unit where there are developments with apartments and houses.  It may be the case that you own the structure of your house but the management company owns the structure of the apartment blocks.


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## DianeC401 (4 Nov 2011)

Hi Vicki,

From my experience, it is not usual for the insurance policy schedule to be sent to Members of the Owners Management Company (OMC) but in our OMC we do have it available for members to see should they request it, and I don’t see why your neighbour has not given you this information.

You could try asking the insurance company directly for a copy? Although the policy is in the OMC’s name, as a member of the company they should be able to furnish you with this.

With regard to renewal and being sure this has been done, there should be an annual AGM at which you can ask questions and query the services provided. In addition annual audited accounts should be circulated to all members which outline costs (including insurance). 

Under new MUD legislation, the members of the OMC (ie: you and your neighbours) have to sign off on the budget for the coming year so again, insurance should be noted as part of this. 

Insurance is one of the most important (and expensive) services that the OMC provides for it's members and it would be a very serious issue if this was not paid for.  One of the conditions of your mortgage (if you have one) is that the property is properly insured so you have a very valid reason for clarifying this.

Estate Management companies can only provide services as directed by the Board of the OMC.  It’s the OMC who are responsible for ensuring that services are paid for and provided. The Estate Management Company are employed by them to do the day-to-day admin. 

If you feel that the development would better run by an Estate Management Company (and there are pros and cons to this, depending on the size of the development) you need to bring it up with the Directors of the OMC or at the AGM. Incidentally it’s likely that your neighbour is also a Director of the OMC. However there have to be at least two Directors on the Board so your neighbour should not be operating alone. Have you tried contacting the other Directors for clarification on the insurance?

One final point; if your neighbour is doing all this extra work on a voluntary, unpaid basis you may be as well to handle this diplomatically. She may feel that she is doing the best she can, working hard for everyone and trying to save you money under difficult circumstances.


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## Vicki Tee (4 Nov 2011)

Thanks for all that info Diane.  The insurance company won't give me a copy of the policy but after a bit of persistance with them they rang her and she is now going to. She is not doing it on a voluntary basis and that's a whole other can of worms.


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## lantus (7 Nov 2011)

A private house is typically insured by the owner direct with an insurance company. If you have a mortgage then you should been directed to obtain this as a condition of purchase.

A block of flats or apartments usually has block insurance. Only the managment company can obtain this typically.

Common areas can refer to paths greens and other areas around an estate as well as corridors and common access routes in apartments. grass and paths are covered by liability insurance rather than insurance to replace.


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