Apartment Block Insurance Policy - Premium Increase

[WHAT'SFREE?]

Has anyone been advised that their block insurance policy will increase by approximately 10% this year?

I’m a little surprised at the increase quoted to us, particularly having read this recent article that appeared in the Irish Independent regarding homeowners (particularly those in apartment blocks) overpaying insurance premiums in light of the massive reduction in the cost of rebuilding.


http://www.independent.ie/business/personal-finance/property-mortgages/homeowners-overpaying-insurance-due-to-slump-1693268.html

 

[Stupid Boy]

Not the overall block policy, brokers have made a substantial loss on the apartment block book over the boom years and as a result are having to increase premiums to get some of the money back. Granted the reinstatment values are falling but will only somewhat offset the increase.

Excesses have increased across the board, standard €250 has now went up to €750 in cases on water ingress.

 

[markpb]

Our managing agent (Wyse) told us at our AGM last night that they were seeing an average insurance premium rise of 30%.

 

[johnny1234]

Not the overall block policy, brokers have made a substantial loss on the apartment block book over the boom years and as a result are having to increase premiums to get some of the money back.

What has the broker got to do with the cost of the Insurance ?? The Insurance Company sets the premium and the broker earns a percentage of this. Shop around and try and get cheaper quotes.

 

[DianeC401]

Our insurance premium doubled this year, despite a substantially reduced rebuilding cost. We contacted 6 companies for quotes, 3 refused to quote and the other 2 stipulated an excess of €7,500. We were told that in a hardening market, many insurance companies see apartment blocks as a poor liability. Over the last three years our insurance company has lost money on our development so we aren't in any position to negotiate further on this. This poor record is despite us keeping a very close eye on claims. So count your blessings - it could be a lot worse

 

[Crescenter]

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[Checkin]

Hi there, our quote is seemingly set to go up @30% - how is everyone elses looking, do you know of any companies with decent quotes?

 

[markpb]

Our premium reduced by 3k but the excess went from 1k to between 2k and 5k depending on the claim. Most companies refused to quote, Zurich were the only ones.

 

[maybelline]

Yeah we're working on the budget for next year and enquired about the insurance premium due for renewal next May and got told to expect a 30% increase too, for similar reasons to those already mentioned, we're with RSA. Reducing reinstatement costs and increasing the excess may make a slight difference but not much. This puts us in an awkward position as the costs of everything else are reducing and I know there will be uproar if the overall management fee does not decrease on last year, from a perception point of view. The insurance is over 10% of the whole budget already.