The FCA has reminded regulated firms of its expectations when arranging and providing fair value buildings insurance for leasehold apartment buildings. The FCA expects firms to make sure they are meeting all applicable rules and take account of any wider legal obligations (eg under landlord and tenant legislation) that are relevant to taking out this insurance cover. This includes property managing agents that are directly regulated, or those that act as appointed representatives of FCA-regulated firms, in relation to arranging buildings insurance (and any other regulated activities they provide).
The FCA points out that insurers and insurance intermediaries should consider the value of their insurance products for customers (including any policyholders who could bring a claim under the policy). This will include consideration of whether all relevant aspects of the policy – such as the total price, coverage and the effects of distribution arrangements (and associated remuneration) – would mean the product offers fair value.