The residents Association of a tower block on the south coast approached an insurance broker of great repute, earlier this year to ask their help in getting vast insurance premium reduced the block of flats was paying in excess of £100,000 a year for the buildings insurance to the freeholders of the property.
We won't say who the freeholders were but the client property was by the sea so near salt water the freehold was not sea water !!
The broker actually saved the clients in excess of £60,000 premium all was well every one was very happy.
THEN it got dirty !!
The managing agent who was alleged to be of great repute and promised never to take commission on insurance premiums worked with another insurance broker who undercut the premium although it was with the same insurer which wrong doing here as there is solid gentleman’s agreement that insurers should not quote the same risk at different prices The good broker then helped the client buy agreeing to reduce their commission and reduced his premium further.
The Managing agent used every trick he could find such as blaming the freeholder for want to use the broker he suggested of course DISPTE ALL assurances to the contrary the managing agent did get a kickback in conclusion the clients had to pay an extra £3000
The good news is that the broker did do their best to help the residents association get a super premium and as usual all the complaint about managing agents and freeholding companies are TRUE.
Source: Neil Cook
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