Insurance

The Association’s buildings insurance is currently supplied by NIG (Part of the Direct Line Group) sand the terms are available from the Association on request.   The policy runs from 28 April to 27 April and will be automatically renewed by the Association annually for as long as we provide factoring services at your address.  The policy is a block policy covering all our factored stock and is fully comprehensive.  The cover is based on the reinstatement value of the property (i.e. the cost for the complete rebuilding of the flat or tenement as a whole).  This value will be reviewed annually in April and it is used to calculate each owner's share of the premium amount in line with the apportionments outlined in the title deeds of each tenement or block of flats.

In summary the premium is calculated by taking the reinstatement value of each tenement or block and apportioning it between the different units in accordance with the title deed shares, this value is then multiplied by the owners' flat rate premium calculator supplied by the Insurers and lastly any package discount is deducted and Insurance Premium Tax is added.  Owners are informed of the new premium in April each year and it is paid in advance by owners on the May factoring invoice.  Continuity of cover is dependent upon prompt payment of the May factoring account.

New owners of existing property factored by the Association are provided with a copy of the Insurance Schedule when they take ownership of the property.  NB The Association will not refund outgoing owners any part of the premium paid. Outgoing owners need to discuss this with the incoming owners and agree the reimbursement of any premium sum paid from the date of sale to the insurance policy expiry date. Owners of new closes to the Association's factoring service are given a copy of the Schedule with the initial paperwork sent out to owners enquiring about our services.  A copy of the Schedule is available on request to the Association's offices.  The Association does not earn commission or administration fees from its dealings with NIG and we have no financial interests with NIG.  NIG also provide insurance cover for the Association's rented stock under a separate block buildings policy.