On paper the building's insurance belongs to the community – in practice it comes down to the property manager (common representative) whether the policy is live, up to date, and works when a loss occurs. This article goes through the manager's insurance duties: what is worth turning into a routine, what to document, and where a broker genuinely makes things easier.
- The manager's four insurance roles: custodian of the contract, preparer of the decisions, driver of the claims, and keeper of the renewal date.
- The building's policy is not a “forever item”: looking at it once a year – sum insured, covers, deductible, claims statistics – pays off.
- Good documentation (policy, resolutions and claims correspondence in one place) is worth its weight in gold both at claim time and when the manager changes.
Custodian of the contract
In practice the building's insurance contract is administered by the manager: they hold the policy, they keep in touch with the insurer or the broker, they watch the premium payments. So the first piece of good practice is keeping things surveyable: the policy, the terms, the endorsements and the related resolutions of the general meeting should all be in one place – that is what the insurance file article is about. For anyone who keeps that in order, half of the remaining work is already done.
Preparer of the decisions
Taking out cover, switching and extending it are typically decided by the general meeting – but the quality of the decision depends on the preparation. It is the manager's job to put material in front of the residents that is understandable and comparable: what the insurance would cover, with what sums, for how much. This is where I take some of the load: the decision-support table and the draft resolution template are ready for the agenda – the manager “only” has to represent the building.
Driver of the claims
A loss affecting the building's policy is typically reported by the manager – the primary route is the insurer's claims line and online claims portal. It is down to the manager to organise prompt loss mitigation, to document it and to keep the residents informed; the who reports the claim article sets out who does what. And the broker steps in when a case stalls or becomes disputed: as a broker I then help the building with the insurer.
Keeper of the renewal date
The biggest quiet risk in insurance is going out of date: the sums fall behind construction costs, the range of covers does not follow the changes to the building (solar panels went on the roof, the lift was renewed), and the premium simply rolls on from year to year. The antidote is a quarter-hour routine once a year: an annual renewal review – value maintenance, claims statistics, cover needs. There is a ready-made list for it too: the annual checklist.
What does the broker add to this?
Time and structure. Requesting the quotes, reading the policy terms against each other, putting the comparison table together and, if you let me know before the renewal date, the renewal comparison – that is my work; the manager's is knowing the building, representing the community and keeping track of the renewal date. My advice is free of charge to the building, and the intermediary's commission is paid by the insurer – while the decision stays with the community at every point. On the framework for working together: the managing agent and the broker.
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