Are you the owner of a block of flats? Or are you the one responsible for managing a building of multiple occupancy? Are you a paid property agent or working for a resident’s management company and need to deal with organising building insurance? If you are, you have a lot of responsibility on your shoulders. You’ll also have noticed how that load is getting heavier – building insurance premiums are getting more and more expensive, and that can be very difficult to budget for and manage.
Why such a hike? Is there anything you can do about it? Fortunately, there are insurance experts out there, like Deacon, who specialise in policies for blocks of flats. They can explain the reasons for the rising costs and give specific, actionable steps to be taken that will help to lower the expense. It’s worth taking the time to investigate the advice and options around and put in the time to research and shop around for a better deal. You are not a tree – you can up and move. Don’t feel tied to one provider and blindly accept their renewal prices. Show some proactive initiative and find a better deal.
Why Are Costs Going Up in the First Place?
The fact is, costs are going up everywhere, and insurance in general is just one area that’s been impacted. Even without increasing the number of claims you make, you’ll find that insurance premiums are more expensive than ever. What is causing this remarkable trend?
A big influencing factor behind the rising cost of insurance premiums is the increasing value of properties in light of the growing expense of building materials. It’s vital to make sure that your building is insured for the right amount and doesn’t fall into a state of being underinsured. You can start by checked the BDV, or Building’s Declared Value that’s started on your original policy document.
Consider getting an up to date evaluation of the property to make sure that the current value is the same as the BDV. You’ll save yourself a great of stress and financial damage if you can do all you can to make sure your property is not underinsured. The inflation in the value of your property might sound like a good thing, but it will come with additional expenses too. The increase won’t just affect your finances in the event of a total write off – every claim you make regardless of the size will be impacted proportionately if your building is underinsured and current rebuilding and repairing aren’t covered by your provider.
What Can You Do to Lower Your Costs?
While you can’t control global issues, there are steps you can take to make a difference on your policy. There are lots of unknowns in the world of insurance, but what we can be sure of is that insurance providers like to give their policies to reliable, low-risk clients. If you can prove a relatively small claims history, you show yourself to be a well-managed block. This will make yourself more attractive to providers and you’ll likely see the positive result in your premium quote.
In consideration of this, keep your claims history attractive by finding ways to continue in reducing the numbers of claims you make. Water damage is one of the biggest causes in insurance claims when it comes to blocks of flats so it’s vital to educate residents in how to carry out regular checks and basic preventative maintenance. When everyone works together, everyone will see the benefit.