Q: We are in the process of employing a new management company and phoned them to advise them our building insurance expires at the end of this month and could they please attend to it, only to be advised that due to a change in legislation they cannot advise us on that and our directors would have to find a suitable insurance company, but they could pay the premiums.
The whole idea of employing a management company was to relieve us of such matters. Does the change in legislation apply to our situation? We are a block of six privately owned flats, collectively we own the freehold under the limited company name. Each flat has one voting director.
FPRA Insurance Expert Belinda Thorpe replies:
The agents are absolutely correct – unless they have a licence with the FCA to provide assistance or advice with regards to insurance contracts they are not allowed to advise or assist, although they can pay premiums.
I would recommend that you approach a broker that can provide a specialist flats insurance policy and they will be able to provide you with advice regarding the cover. Once you have made the decision on which Insurer you wish to accept cover with you can then request that the agent pays the premium.
[Submitted July 2019]