9  Insurances and Insurance Premium Benchmarking

Authorities should explore with bidders the possibility and value for money benefits of utilising the existing insurance arrangements which the RSL or RP has in place in relation to its stock for the housing to be provided under the non-HRA Project.  This is particularly relevant in relation to material damage insurance during the operational period.  If existing insurance arrangements are utilised it would not be appropriate for the Authority to provide relief in relation to insurance premium increases and the provisions set out at Schedule 23 (Insurance Premium Risk Sharing) should be deleted.

Whether the use of an RSL's or RP's existing insurance arrangements is practicable will, in large part, depend upon the manner in which the project is funded, the funder's requirements for insurance and whether the security requirements of funders in relation to insurances can be obtained from existing insurance arrangements.  Authorities will need to take detailed insurance advice from their insurance brokers on this issue.