We wanted to give you an update following the FCA’s Policy Statement (PS23/14) regarding Multi Occupancy Buildings Insurance.
Scope of the new Rules
The new rules come into effect from 31st December 2023 and apply to all contracts of insurance where:
- The building being insured is multi-occupancy. i.e a block of flats
- The building contains residential leaseholders only (not sub-tenants/renters, unless liable to pay a service charge that contains the cost of the insurance under the Landlord and Tenant Act 1985)
- A Freeholder takes out the insurance for the building
- The Leaseholder or Tenant is required to pay a portion of the building insurance as part of their Service Charge
The new rules do not apply to:
- Single occupancy buildings i.e houses
- Commercial leaseholders
NB: We can still look to write cover via the standard Landlord panel for rented properties where the occupancy of the tenant is classed as HMO's (multi mixed tenant type) residing at the same address. To see a summary of the cover available from the standard Landlord panel, click here.
We would like to confirm our position regards this specific area of cover ahead of these new rules that are being implemented.
- We cannot write any Multi-occupancy Buildings insurance risks via the standard Assurant insurance panel.
- The address should not be edited on the Quoforma+ quoting system to cater for this (i.e. editing address to show flat 1a and 1b at a house conversion). The quote system will generate a pop-up warning box if the first address line is selected to be edited to reflect this.
- These risks can be referred to us for consideration through our Non-Standard proposition where they can be written on specific products designed for these risks with the correct disclosures.
- For any policies of this type that have been previously sold and are on risk, we will be contacting the customers at renewal to say that cover can no longer be offered and we can look to assist them via a Non-Standard quote.
As a firm, you will be able to see the clients affected by accessing the 'Retrieve Renewals" information available via your home page Dashboard.
If you have any questions regarding this, please Contact Us