As such, we have a block policy arrangement which means that every property we own is added to our block policy from the date of purchase right up until it is sold (unless there are certain circumstances which prohibit this, such as when our ownership is by way of long lease where the freeholder retains the right to insure).
By dealing with the building insurance this way, IPM can ensure that all our properties are insured adequately at all times and at a reasonable cost. Furthermore, it helps us accurately recharge the cost of the premium to the tenant if we are able to do this.
A copy of the policy document can be found here.
Where there is a tenant in place at the property, the lease will state that they are responsible for complying with the building insurance policy conditions at all times and, in the event of a claim on the policy being rejected because of any act or omission which goes against the policy requirements, then the tenant will liable to pay the costs arising from this.
Where a property does not have a tenant in occupation, then the property manager will need to put measures in place to comply with the policy conditions concerning vacant properties. These conditions are listed here. It is very important that all these requirements are strictly adhered to, otherwise it is likely that a claim made for any incident which occurred during a period of vacancy will be rejected by the insurer. As well as that, if the property has been unoccupied for 90 days or more, then additional measures to protect the property and enhance its security may be appropriate, as the insurance will no longer cover things like vandalism and theft while it remains unoccupied (after 90 days the cover is reduced to fire, explosion, lightning and aircraft related damage only).
Regardless of whether or not the property is tenanted, any incident which occurs or any changes which take place that may impact upon the building insurance cover (for example, if the property is unoccupied for 90 consecutive days or more, or if there is a change of use, or if any building works take place at or near the property) then IPM must be notified in writing without delay. This can be done by writing to our office address or by emailing info@ipm-pensions.co.uk