Frequently Asked Questions
1. What happens to our premium if we make a claim?
Unless, for example, the amount being claimed is greatly more than your premium, or a similar incident has occurred before, or you have had many claims in relation to your property’s size, then your next renewal premium is not normally affected, save for the effects of Index linking and general rate increases.
2. Why do we need Employers’ liability insurance when we have no employees?
It is a legal requirement that all Limited Companies hold Employers liability insurance. The fine for not having suitable insurance in place is £2500 for each day you are without such insurance, or £1000 per day for each day where the Employers Liability insurance certificate is not correctly displayed.
3. Why is my insurance company wanting to survey our buildings?
It may want to for a variety of reasons,such as; when over a certain Sum Insured
if there have been previous claims of significance
to ascertain construction type
or to ascertain possible increased “risk” e.g. of
storm, flood or subsidence.
4. Where do you obtain our Buildings Insurance Sum Insured from?
This is supplied by you, maybe some years ago, then index linked each time your policy has been renewed. It is your responsibility to ensure that the Sum Insured represents the current rebuilding cost and it is advisable to have this cost professionally revalued at least every 5 years. The Sum Insured does not represent the property’s “market” value, which may be much higher or lower.
5. How is our premium calculated?
Premiums are based on the Sum Insured and varied by such things as area, previous claims, age, construction, in fact, as you would expect – all answers to questions on our proposal form may vary your premium.
6. If we do not require Employers’ Liability, Public Liability and/or Communal Contents insurance will our premium be reduced?
These covers are automatically included in our CHUResidentsline policy cover and cannot be removed. Employers’ Liability insurance for Limited Companies is a legal requirement and Public Liability insurance is essential for the financial protection of Directors, Shareholders and Leaseholders. Additionally, we offer facilities for Directors & Officers cover, essential for the protection of the personal wealth of individual directors and committee members from the results of allegations of negligence. Communal contents cover is also a standard feature of our CHUResidentsline policy.
Property owners liability insurance doesn’t seem to relate to the Public Liability insurance question being asked.
Employers Liability, Public Liability and Communal contents covers are automatically included in our CHUResidentsline policy cover, for your safety and its removal will not reduce your premium.
7. Where can I obtain a Fire Risk Assessment from and how much will it cost? If we do not hold a Certificate will our insurance cover be affected?
Fire Risk Assessments must be carried out by a “competent person”. If necessary, proof of competence could be tested in a court of law. It is impossible to answer definitively whether or not a claim under a Residential Buildings policy would be affected if there was no evidence of a current Fire Risk Assessment. Different Insurers do not necessarily make the same decisions. If the claim is not in respect of fire damage, then it would very likely be paid. However, if the fire could have been prevented had an assessment been done and recommended actions carried out then an Insurer may take a different attitude. Remember, Fire Risk Assessments are a legal obligation on your Company. Please call us for further information on 0800 281 235.
8. Why is there an Excess applying to my policy cover?
Excesses may apply for different reasons; – a standard policy term
due to claims “history”
or if there is an increased likelihood of a particular occurrence happening e.g. by flood, storm, subsidence or vandalism.
9. Why do we need Directors’ and Officers’ insurance?
This type of cover protects directors and other officers of your Company from alleged claims for monetary loss by leaseholders or others, of negligence in carrying out their required functions, for example: omission to carry out a legal or other duty, or making a decision which is believed to be incorrect.
10 We have an engineer visit under our lift maintenance contract, so why do we need an additional Inspection service?
You are legally required to have passenger lifts inspected by a competent body every 6 months during the lifetime of the lift. A certificate is produced in a specific format with repair or replacement requirements if observed. A lift engineer does not do this, Your Maintenance Company may, separately, carry out legal Inspection under LOLER regulations, but you must consider if the residents would be happy with your maintenance company inspecting its own work.
