There is a quarter of an hour in the work of a property manager (common representative) that pays back out of all proportion: the annual renewal routine. It is not a project-sized task – four points, ticked off – yet it is what separates a maintained policy from one that quietly ages out over the years. This article sets out how the routine runs; a tickable version is in the Resources section: the annual checklist.
- The four points: sum insured and indexation → claims statistics → changes in the building → a quick check of premium and cover.
- The timing: far enough before the renewal date to leave room for a decision and, if needed, for tendering as well.
- The routine has three possible outputs: everything in order / a maintenance amendment / tendering begins.
Point 1: the sum insured and indexation
The first question is always value: does the sum insured hold the building's real rebuild value? The indexation proposal that arrives with the renewal notice should be judged in that light – accepting it is usually the simplest protection against underinsurance, while rejecting it is defensible only where the sum insured is fresh and well founded (the details). If a bigger change has happened during the year – a renovation, solar panels – then updating the sum is not a question of indexation but a change to be notified.
Point 2: the claims statistics
The past year's claims: how many, of what type, and how they ended. The question is not the count but the pattern: is anything repeating – because that is a loss prevention task (checklist), and it may also be a question of tuning the deductible (deductible logic). And good statistics are an argument: a few claim-free or improving years give bargaining power in a tender (how).
Point 3: what has changed in the building?
A quick list for the year: has there been a renovation, has new equipment been added to the building (solar panels, cameras, entry systems), has the use changed (a new shop on the ground floor, letting trends), has there been an organisational change (management company, property manager)? Every such change is potentially insurance data: it affects either the sum insured, or the cover needed, or the contact details. Whatever goes unreported is either an uncovered risk or outdated data – the lines of the survey data list make good reminders here too.
Point 4: premium and cover – a quick check
To close, the big picture: is the relationship between premium and cover broadly right? Not a full review – there is a separate exercise for that – but a quick test: has there been a sustained, unjustified increase, is an obvious cover missing, is the service experience telling you anything. If any of the four points shows red, the output of the routine is to name the next step: a maintenance amendment to the existing policy, or tendering. If everything is green: the routine is done – and that is exactly the point: order, not drama.
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