You may have heard in the press, horror stories of MANAGING AGENTS inflating building insurance premiums
Since the article was published I have been approached by a large number of residents associations who are billed for the insurance by managing agents who charge typically 3 times the true rate !!!!!
I spoke to one block of 15 flats who are being charged £22000 in reality the premium was £8000 and another of 4 flats paying £3200 when in truth the premium was nearer £1200. This is just the tip of the iceberg
This is a major issue as perhaps 10% of the population live in private flats and the managing agents are making a fortune
Insurance broker Neil Cook of Ember JD Insurance, is raising concerns about the cost of insuring whole blocks of flats.
He says he is aware that hidden commission charges are being shared between brokers and managing agents at the property owner’s cost.
In a recent article in the Observer, Mr Cook suggested that some property owners are paying up to double the market rate for buildings insurance because brokers are paying “kickbacks” to the property agents who manage their homes.
He alleges that in some cases, backhanders are funded by insurance brokers choosing the insurer that pays the most commission, instead of the company that offers the best value.
Leaseholders are largely oblivious to their losses because they frequently have no idea which insurance company is covering the block.
Frequently, management companies simply send out an annual request for “ground rent service charges and insurance”.
Speaking to the Observer Mr Cook states: “I see a lot of inflated premiums for blocks of flats where it just doesn’t add up, and there is no way the broker has sought the best deal … sometimes it is as much as double but, typically, the premium is about 100% above what you would expect to pay.”
Since the article was published I have been approached by a large number of residents associations who are billed for the insurance by managing agents who charge typically 3 times the true rate !!!!!
I spoke to one block of 15 flats who are being charged £22000 in reality the premium was £8000 and another of 4 flats paying £3200 when in truth the premium was nearer £1200. This is just the tip of the iceberg
This is a major issue as perhaps 10% of the population live in private flats and the managing agents are making a fortune
Insurance broker Neil Cook of Ember JD Insurance, is raising concerns about the cost of insuring whole blocks of flats.
He says he is aware that hidden commission charges are being shared between brokers and managing agents at the property owner’s cost.
In a recent article in the Observer, Mr Cook suggested that some property owners are paying up to double the market rate for buildings insurance because brokers are paying “kickbacks” to the property agents who manage their homes.
He alleges that in some cases, backhanders are funded by insurance brokers choosing the insurer that pays the most commission, instead of the company that offers the best value.
Leaseholders are largely oblivious to their losses because they frequently have no idea which insurance company is covering the block.
Frequently, management companies simply send out an annual request for “ground rent service charges and insurance”.
Speaking to the Observer Mr Cook states: “I see a lot of inflated premiums for blocks of flats where it just doesn’t add up, and there is no way the broker has sought the best deal … sometimes it is as much as double but, typically, the premium is about 100% above what you would expect to pay.”
