0:01 AM, 30th March 2023, About 11 months ago 8
Hello, If it’s time for your re-instatement quote for your block building insurance please learn from our mistake. We have just had our insurance re-instatement done which involved a site visit by the insurance broker.
Our block of 7 flats and 1 commercial unit are in Harrogate town centre, North Yorkshire. Imagine my astonishment when our RTM accounts lead informed me as a Director of the RTM that as a result of the quote, our block had been re-valued as 2.2 million for a re-build moving from the previous figure of £900,000!
Worse still, this revised figure was sent to our insurance broker who then upped our premium by over 100%.
I was so shocked that I immediately contacted a local surveyor in Harrogate and sent him this re-investment quote. He does many similar blocks in Harrogate and is very experienced. He immediately concluded that the figure, in his opinion, was 1 million pounds too high and that the figures quoted being much too high per metre for the re-build.
Naturally, I challenged the insurers but they stand by their figures! We are of course now going to instruct the local surveyor to produce another report which is estimated to be around a value of 1.2 million not 2.2 million!
This will then reduce our insurance premium to an acceptable uplift and not over 100%.
I just wanted to advise everyone to use, where possible, a local surveyor and, if possible, get more quotes as the difference can be huge. We have now paid £540.00 for the first quote and have to get another but at least we will bring down our premiums.
I’m advised that this is now a common thing whereby re-instatement quotes are done at the higher quartile per metre as insurers are getting windy re re-build costs.
The irony I find is that insurance is about risk and likelihood but what are the chances of any of our blocks being reduced to a complete re-build?
I bet about 100,000 at least to 1 but this never stops the greed of some and at our, the leaseholders, expense. Unfortunately we all have to have them done but be very careful who you choose!
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