Do you feel like a victim of the economic crisis? As the owner, manager, or occupant of a block of flats you might do. However, after you finish reading this article, you won’t feel like a helpless victim. You’ll have the power and knowledge you need to make the best decisions for your building and your budget. By using the resources available to you, such as those provided by insurance specialists like Deacon, you can have all you need to find the best deals and lower your premium costs.
Why Are Premium Costs on the Rise?
None of us are strangers to rising costs and there are few factors involved in the rise seen in building insurance premiums. For one thing, building costs are soaring as never before. Both Brexit and the pandemic has caused a severe shortage of labour, driving up wages in the sector by nearly 10 per cent in the past year. Due to a loss of EU workers and early retirements, there are thousands less workers in the construction field as there were three years ago. These issues in the supply chain cause both the value of the property to increase and therefore the subsequent cost to repair the building. As this goes up, so does the premium involved in insuring it.
While you may not be in control of the global issues governing the market, there are things you can do that will help you to keep premium costs in check.
How to Lower Your Premiums
- Shop around. There’s still a lot of good to be found in doing some homework. Look at a number of options, don’t settle for the first suggestion and challenge renewal prices. Put up a fight for the right price!
- Keep an eye on your property value. Start by making sure that the block of flats is insured for the right amount. You can do this by checking the Building’s Declared Value on the policy document for your insurance agreement. Carry out a revaluation of the property to ensure that was you own matches what the insurance providers claims you own. Avoid the financial risks of becoming underinsured by constantly checking and revaluating. Insurers will go of the Building’s Declared Value that was
- declared originally and base their premium on the calculations they then make for potential cover in the future. By making sure you have the right figures in the first place, the insurance will on the right basis from the beginning.
- Reduce the numbers of claims in areas where it’s easy to do so. You can’t prevent every accident, but you can prepare residents to look out for problems before they develop. Armed with the right knowledge, occupants can identify issues, from dripping taps to leaky hoses, that could present bigger problems if not addressed swiftly. When residents can carry out basic maintenance checks, common problems like water damage can be significantly limited. Insurers are becoming more and more reluctant to take on risks so do all you can to present yourself as an opportunity with less risks. This will be evident when regular claims are not made for the same repeated issue.
- Choose the balance between cover and excess. Don’t pay for cover you don’t need and, if you have the finances to do so, opting to pay for a higher excess will reduce your premium significantly. You will have to pay out more money if you make a claim, but it may be worth the risk to bring the upfront cost of the premium down.
