ELM Group Insurance 2015 / 16
10 Dec 2015
It is by now well established that block insurance policies are seen as best practice for Freeholders and managing agents. A block portfolio policy is not a one single policy, it’s a “master” policy made up of individual certificates for each estate. The policy is economically advantageous overall as there is strength in numbers when negotiations are outlined, compared to individual policies. One of the many benefits is that they usually provide good value for money. Not least because managers and Freeholders do not have to charge extra costs relating to claims procedures for a variety of different providers.
Elm follows the block policy route and renews the insurance at the end of November each year. This year, from early August, we asked our current brokers and another broker, to undertake a full review and exercise of the market, and then approach a number of insurers for quotes.
The insurance brokers, armed with a more positive Elm Group profile than the previous year due to an improving claims picture for the block policy, wanted to assess the ‘appetite for risk’ from the insurance market and looked to obtain alternative quotations to the current insurer QBE.
One insurer, Canopius, provided terms which resulted in a reduction in rate on the property portfolio. This takes into account the increase on insurance premium tax (IPT) from 6% to 9.5% and for index linking, we have allowed a 4.26% increase on the residential buildings values, these being the latest figures available (based on R.I.C.S. guidelines).
Despite their best efforts the other brokers were unable to get close to the reduction our current brokers had secured through Canopius. The terms Canopius provided best suited the demands and needs of the ELM Group property portfolio for the 2015-16 renewal.
I trust that the information detailed above has given you the reassurance that a real interrogation of the insurance possibilities available was carried out and that Elm have acted in leaseholders’ best interests by placing the insurance contract with Canopius.
If you do have any questions please feel free to contact us.
Gary Newell, Finance Director