On 31 December 2023, the Financial Conduct Authority (FCA) implemented the Multi-Occupancy Building Insurance Policy Statement (PS23/14). This guidance outlines the requirements for insurance companies and brokers in relation to Multi-Occupancy building insurance.
What is Multi-Occupancy Building insurance?
Essentially this covers all residential lease holders who pay a contribution towards the insurance cost of the property.
Who will the changes in Multi-Occupancy Building insurance impact?
The FCA has included all residential leaseholders within their new disclosure rules; specifically leaseholders who, as part of their lease, pay a ‘service charge’ which includes building insurance cover.
The policy statement is likely to impact and be of interest to:
- Regulated insurers and intermediaries
- Industry groups and trade bodies
- Unregulated firms involved with multi-occupancy buildings (such as property managing agents)
- Freeholder owners who are landlords of multi-occupancy buildings
- Leaseholder representative
Next steps
If you lease any part of an insured building for residential use or charge your tenants a ‘service charge; in relation to the building insurance premium, then you must provide a disclosure statement which includes, amongst other things, a summary of cover and pricing and remuneration information to any residential leaseholder.
It is essential that you work alongside a specialised broker, who can disclose key information to leaseholders and ensure your buildings are protected.
If you have any questions regarding the new regulations or general building insurance queries, please get in touch.
Whilst care has been taken in the production of this article and the information contained within it has been obtained from sources that Griffiths & Armour, an Aon company believes to be reliable, Griffiths & Armour, an Aon company does not warrant, represent or guarantee the accuracy, adequacy, completeness or fitness for any purpose of the article or any part of it and can accept no liability for any loss incurred in any way whatsoever by any person who may rely on it. In any case any recipient shall be entirely responsible for the use to which it puts this article.This article has been compiled using information available to us up to 20 March 2024
