Apartment Management Company Insurance and Claims

[Dinarius]

We are paying about €2000 p/a for insurance for a development of <5 apartments.

Currently, we have a dampness issue that will cost about €2500 to repair.

Is it worth claiming for something of this cost, in terms of its effect on our premium, or should we pay it ourselves?

Does a claim affect our ability to shop around when our premium next comes due? Would it affect the premium levied by a new insurer?

Anything else we should be taking into consideration?

Thanks in advance.

D.

 

[Leo]

Is it worth claiming for something of this cost, in terms of its effect on our premium, or should we pay it ourselves?

I presume there is an excess attached to that policy?

Does a claim affect our ability to shop around when our premium next comes due? Would it affect the premium levied by a new insurer?

Yes and yes. You may even find it difficult to get a quote from some providers after a recent claim.

It's likely you'll end up paying more over the longer term after the deduction of excess. Have a look at your policy details, does it spell out the level of discount you are currently benefiting from for being claims free?

 

[Dinarius]

Thanks for a comprehensive reply.

I'm not sure about whether or not we have a no-claims bonus. There was a claim a few years back (can't recall how long ago) and that may have affected it.

The minimum excess for any category of claim is €500. That goes all the way up to €1500 for water intrusion, for example.

So, at best they might pay €2000 of a €2500 claim, if we made one.

Personally, I'm of the view that we should just divide the cost and not affect the premium.

Since 2018, inclusive, the insurance premium has been...

€1273
€1273 (same two years running)
€1287
€1416
€1515

The jump in 2021 to €1416 may have been to do with the claim. I must check.

This year's premium is €1779; a big increase.

Thanks again.

D.

 

[ClubMan]

I'm not sure about whether or not we have a no-claims bonus.

The most recent renewal should have details of the composition of the premium, including any discounts or loadings applied.
In general, my approach to insurance has always been to only make claims in extreme circumstances but to otherwise foot the bill myself for smaller issues.
In this case, maybe it would be better to use the sinking fund rather than claiming on the insurance?

 

[NoRegretsCoyote]

Is it worth claiming for something of this cost, in terms of its effect on our premium, or should we pay it ourselves?

The last time I had a likely claim my insurance company could tell me immediately and over the phone what it would mean for my renewal cost. (Spoiler alert: I paid it myself).

In general, my approach to insurance has always been to only make claims in extreme circumstances

I agree. Insurance is basically for the house burning down. It's better to maintain a cheaper policy with a higher excess and maintain cash reserves to deal with issues as they arise out of pocket.

 

[Dinarius]

The most recent renewal should have details of the composition of the premium, including any discounts or loadings applied.
In general, my approach to insurance has always been to only make claims in extreme circumstances but to otherwise foot the bill myself for smaller issues.
In this case, maybe it would be better to use the sinking fund rather than claiming on the insurance?

I agree.

Will wait for other quotes for the problem before making a decision.

I cannot see no-claims bonus on the policy. It does say, "Claims History: No claims", and then it lists the premiums I quoted above.

Thanks.

D.

 

[ClubMan]

I agree.

Will wait for other quotes for the problem before making a decision.

I cannot see no-claims bonus on the policy. It does say, "Claims History: No claims", and then it lists the premiums I quoted above.

Thanks.

D.

Usually they list the base price and then any discounts etc. But I could be mixing up motor and property/other general insurance to be honest....

 

[DirectDevil]

Additional thought.

Would the policy actually cover this loss anyway ?

Some policies specifically exclude gradually operating events such as water ingress, dampness and the like.
So, it could be that the insurance policy would not operate for this event.

 

[Dinarius]

Additional thought.

Would the policy actually cover this loss anyway ?

Some policies specifically exclude gradually operating events such as water ingress, dampness and the like.
So, it could be that the insurance policy would not operate for this event.

Good point. I'm not sure. I think that the excess for water incursion is €1350.

Am awaiting more quotes before deciding whether to make claim or pay.

Thanks.

D.

 

[Ravima]

Dampness is usually NOT an insured peril. It tends to be a maintenance issue and not covered.