Insurance

CREM (the landlord) and Octagon Overseas (the freeholder) jointly place the buildings insurance for the entire estate as a single entity. They invoice the S.24 Manager for the residential element, and this is demanded as part of the service charge demand. A copy of the 2023/24 insurance certificates and schedules can be found here and a copy of the policy document here.

The ‘reinstatement cost assessment’ report which forms the basis of the insured value can be found here. The basis of the allocation of the premium between the various tenants can be found here.

Canary Riverside lessees’ successful Tribunal challenge

For details of the recent Tribunal decision disallowing £1.6M of ‘landlord’s commissions’ included within the service charge between 2010-2019 please see the Insurance S27A webpage.

Buildings insurance

Building Insurance covers damage to the fabric of the building (including glass) and the structure of individual apartments and their individual fitted bathrooms and kitchens where an insured peril is met. Buildings insurance does not cover the costs of normal wear and tear.

An excess is applied to any claim made and varies according to the type of claim. In the event of an escape of water (EOW) from an apartment the excess is currently £25,000*. If a leak originates from a flat due to negligence on the part of the owner/occupant (eg, overflowing bath, broken water pipe under the kitchen sink) the owner of the apartment from which the leak originated should meet the cost of the EOW excess payable. Otherwise the excess will be charged to the service charge.

It is essential that residents ensure that their flat’s contents policy provides adequate cover including third-party liability (ie, to cover damage to contents in neighbouring apartments following a water leak).

[*In 2021 the EOW excess at Canary Riverside increased 25-fold, to £25,000. It was initially thought that this was due to a high volume of claims at Canary Riverside but it appears insurance companies are increasingly reluctant to insure high-rise blocks and are using the EOW excess as a means of reducing payable claims - and increasing profits.]

It is essential that residents ensure that their flat’s contents policy provides adequate cover including third-party liability (ie, to cover damage to contents in neighbouring apartments following a water leak).

For other types of claim, if there is no negligence involved the £350 excess will be met through the service charge (per the RICS Code), otherwise it is met by the claimant.

Making a claim against the buildings insurance

Should you need to make a claim against the buildings insurance please contact Richard Hargreaves at Reich:.

and copy to Jaime Rodas: 

Please download and complete the claim form to attach to your email.  Photos will always be required of the damage, together with details as to the cause of the damage and confirmation that the underlying issue has been resolved.  

The policy also covers 'trace and access', if required in order to locate the source of a leak from a concealed fixed pipe e.g. located behind walls or above a ceiling. NB the cost of trace and access is only covered by the policy when there is a subsequent successful insurance claim.   

Should there be any damage to the contents within your apartment this will not be covered by the Building Insurance policy.  Residents must arrange their own independent Contents Insurance policy in order to recover the cost of repairs to/replacement of their personal possessions. In addition residents’ should ensure their insurance policy covers them for damage, including third-party liability, caused by events such as a leaking washing machine, tap, toilet etc. 

Preventing water leaks

Water leaks are the most common cause of damage in apartment blocks and it is in the interest of all residents to minimise the risk of leaks occurring - please check our page on water leaks for prevention tips.  As well as the inconvenience and damage, frequent leaks mean higher Building Insurance premiums and excesses. Please see the holidays/extended absence page on how to minimise the risk of leaks when the apartment is left vacant for lengthy periods.

Residents should consider installing water leak detector/alarms such as this remote sensor or this alarm sensor to provide an early-warning of problems, eg, with in-built toilet cisterns, washing machines etc, before serious damage occurs. 

LEASE has provided guidance on how to deal with a leak affecting your apartment - click here to read. ARMA has produced a useful guidance note on how to prevent water leaks in your flat.