FAQ
Authorised and regulated by the Financial Services Authority in respect of insurance mediation activities only
COMMON INSURANCE POLICIES & PROPERTY FUNDING
It is evident from the number of enquires we receive from new owners that, in many instances, owners are
confused by particular terms laid down in their Title or Deed of Conditions. The principal items that appear to cause confusion are:
1. Common Insurance Policies
2. Advance Charge or Floats
To help owners understand more fully these items, we have produced this circular with question and answer illustrations.
COMMON INSURANCE POLICIES
Q. Why are you insuring my property?
A. When you purchased your property, the Deed of Conditions (legally binding document) state whether you require to contribute to a Common Block Insurance Policy.
Q. What are the benefits of a Common Block Insurance Policy?
A. A Common Block Insurance Policy benefits all owners, as there many parts of your property that may be common, e.g. roof, outside walls, mutual division walls, foundations of the building, gutters, footpaths, stairs, etc. When a claim arises clients can have peace of mind, knowing that all owners are insured and also the claim will be dealt with promptly as there is only one Insurance Company to be contacted.
Q. Is my Sum Insured correct?
A. The sum insured should represent the full rebuilding cost of your property as new, including professional fees, removal of debris costs etc. It is the insureds responsibility to ensure that this amount represents the rebuilding cost of the property and we strongly recommend that you review the sum insured on a regular basis and make any necessary adjustments. If you require guidance on the correct sum insured we suggest that you instruct a professional valuation to be done. The cost of this, however, would be incurred by yourself.
Q. Can you insure my property, if the Deed of Conditions (legally binding document) states I do not require to contribute to a Common Block Policy?
A. In most cases we can arrange to have your property insured under a Common Block Insurance Policy, for further details please do not hesitate to contact our Insurance Department on:-
Tel. 0141 221 9266 - Fax. 0141 226 5064
Authorised and regulated by the Financial Services Authority in respect of insurance mediation activities only.
FLOAT & LEVY INFORMATION
Q. Why does my Deed of Conditions state I have to pay an Advance Charge, and what is it for?
A. Simply speaking, to enable us to pay for your Building Insurance, cleaning of windows, internal cleaning of common stairs and entrances, ground maintenance, stair lighting, etc. we require to hold enough funds to settle accounts.
Q. Do you charge everyone the same?
A. No! The amount of Advance Charge requested is based on estimates received by us from the various
contractors, or companies, who are involved in maintaining your property. Obviously, we will require a greater fund to pay contractors who are involved in maintaining your property. We will also require a greater fund to pay for a variety of services, as against an Estate, where we are only dealing with payments to a Landscape Contractor.
Q. How does the system work?
A. At specific times of the year, we request from you a sum of money estimated to cover either part of, or the whole of, the following year’s expenditure. At either the end of the first half of the year, or the end of your financial year, the date normally specified being Whitsunday (15th May) or Martinmas (11th November), we will balance your account and forward a Statement showing the actual expenditure we have made on your behalf, less the advance payments you have made. In addition, we will request the next advance payment, which will re-commence the aforementioned procedure.
Q. My Deed of Conditions state I have to pay a Float, why?
A. A Float is only a different method of funding the costs of maintaining your property. Instead of paying a
charge every year or half year, as with the Advance Charge System, you make a one-off payment, which we retain until you sell your property. At the next accounting period after the date of sale, your account is
balanced off and, once your final account is paid, your float is returned to you.
We hope this information has been of assistance, however, should you still be unsure of any particular point, please do not hesitate to contact us on:- Tel. 0141 221 9266 - Fax. 0141 226 5064