Inspire Risk Management Limited Apartment Block Complexes “the associated issues and there links to insurance” Presented to Paul A Corcoran DIP CII 2 nd March

A Little Bit Of Background Worked in Ireland for eight of the last twelve years Involved in apartment block insurance in Ireland since 1998 Extensive experience in the placement and servicing of Residential & Commercial Property Owners Business Employed by major national brokers in both countries Specialist Property Owners Insurance Broker Directly involved with IFSRA and the FSA Extensive experience of working with and for a managing agent specialising in block management Qualified NEBOSH Health and Safety Consultant Currently a business partner with a National Broker - placing in excess of £400m Gross Premium Launching e trading solution in mid 2010 in Ireland Access to Lloyds of London and insurers in both countries Providing advice and insurance broking services to property clients in Ireland and the UK on an ongoing basis and for many years to come

Some of the associated issues Developers and Managing Agents the early days Formation of a Management Company The appointment of the Managing Agent Roles and responsibilities/ tendering process/ agreeing service charges Terms of Business, who does what. The role of the apartment owner The maintenance period Placing the insurance cover, part completed and phased developments Reinstatement sums insured, who decides? The Directors/ control of spending and accounts Revision of service charges, reality kicks in Collection of service charges and payment for services

The Reality Managing Agent appointed by the developer Owners details not readily available for the agent Developer/Managing Agent Role Major crossover, confusion to all parties about who does what Insurance Policy arranged on completed or phased basis, how can the cost be apportioned ? NO TERMS OF BUSINESS Management tends to be Reactive not Proactive Serious Health and Safety and Fire Issues As development matures, maintenance issues, electrical installation Poor finishing and poor workmanship Sums insured on insurance policy inaccurate Spending uncontrolled Increase in service charges Managing Agent v Owners

The Cover Buildings, Common Area Contents, Alternative Accommodation, Employers and Property Owners Liability Cover. Buildings, The structure, including Landlords fixtures and fittings, outbuildings, underground car parks. (normally including wooden floors) Landlords Contents not insured Employers Liability – Employed Caretaker. Not to include Sub Contractors, Audited and Vetted. Property Owners Liability, liability to third parties arising out of the ownership of the building. Lift Inspection Cover, can be linked to the maintenance contract. All lifts need to be inspected. Directors and Officers, key cover to protect committee members and recommend €1.3 million minimum cover Policy Excesses on the increase particularly water damage

Controlling Insurance Costs Specialist advice is available Important that the broker understands some of the associated issues Critical that the Residents Committee or Board of Directors control the major expenses including insurance, DONT LEAVE IT TO THE MANAGING AGENT The sum insured is critical, review it annually. Try to understand the Cover. Differing interests between owners/tenants/managing agent/developer Fully appreciate the Health and Safety Issues. Waste Management/Fire Procedures/Quarterly Testing/Health and Safety Reviews CONTROL THE CLAIMS REVIEW THE CLAIMS HISTORY Regular reporting Work with your insurance provider, review all the issues regularly Build a long term relationship with insurers BE INVOLVED IN BUYING THE COVER, ITS YOUR POLICY. IF IT DOESNT PERFORM THE OWNERS WILL SUFFER

Paul Corcoran Local Number (01) Paul A Corcoran Dip CII Associate Partner Inspire Risk Management Limited Suite 14, St Helens Chamber Off Chalon Way Salisbury Street St Helens Merseyside, WA10 1FY (t) (f) (e) (m) (w) Contact Details