Property Investors Insurance

RESIDENTS' ASSOCIATIONS

Residents’ Association Companies have increased in number over recent years, generally each individual flat owner becoming a shareholder and director of the Residents’ Association Company.

With so many individual parties involved, it is essential that the sums insured caters for the entire building, any outbuildings, walls, gates and fences etc. Under-insurance will not only affect the one owner but all owners.

covers available

 

• Damage to Property – usually All Risks / Terrorism for damage to buildings, landlord’s fixtures and fittings, perimeter fencing and walls, car parks etc, plus debris removal and professional fees etc.
• Alternative Accommodation costs
• Property Owners Liability – the defence of claims and potential compensation following injury to third parties or damage to third party property as a result of the property owner’s negligence
• Employer’s Liability – you may have a duty to provide Employer’s Liability Insurance by statute if staff are employed, even if just directors.
• Engineering & Inspection – where there is a statutory duty to inspect certain machinery such as passenger lifts within buildings or where ‘breakdown’ of such equipment may be a cause of concern.
• Legal Expenses – to cater for legal disputes between landlord and tenant, squatters and tax investigations by HMRC for example.

Other covers to be seriously considered are:

Directors’ & Officers’ of Residential Management Associations & Companies

Being a shareholder director of a residential management association is a significant responsibility and leaves the individuals exposed and personally liable for their actions. Many people involved in a Residents Association are unaware of the consequences should they commit a wrongful act.

A Directors’ & Officers’ Liability Policy covers losses arising from claims brought against directors and officers for ‘wrongful acts’ committed in the performance of their duties, to ensure that their personal wealth is protected.

What is a 'wrongful act'?

‘Wrongful act’ includes breach of duty or trust, neglect, error, misstatement, misleading statement, omission, negligent act or any other act wrongfully committed.

Who could make a claim against you as a director or officer?

Any person that may have an interest in the affairs of your company could make a claim.  For example, this might include creditors, government departments and/or regulatory authorities and indeed the individual flat owners you represent.

How might a claim arise?

There are various duties imposed upon you as a director or officer including:

• Common law duties
  • legal principles established from many years of case law.
• Fiduciary duties
  • to act honestly.
  • to act in good faith.
  • to act in the best interests of the company at all times.
  • not allowing personal interests to conflict with those of the company.
• Duties of skill and care
  • to exercise the same level of care that a person would use in the management of their own affairs.
  • to exercise the level of skill expected from a person with their knowledge and experience.
• Statutory duties
  • Where an offence under an Act is committed by a Company with the consent or connivance of a director, or is attributable to his neglect, that director is also guilty of the same criminal offence and can be punished accordingly.

Terrorism

Members may wish to extend their cover to include loss or damage as a result of terrorist acts.

Engineering inspection, insurance and breakdown

Any items of plant such as water treatment works or passenger lifts may require statutory inspection, insurance or breakdown cover.

Contact us for more information.