The property market has been going through some tough times of late, with rising interest rates pushing up mortgage costs, which, coupled with the wider cost of living crisis, is putting many under significant financial pressure.
For leaseholders owning property in a multi-occupancy building, however, the financial pressures on their property have been going on significantly longer. And they might not even have been aware of it.
That’s because many insurance brokers have been adding unscrupulous (and illegal!) hidden commission payments to the cost of buildings insurance, inflating premiums in order to secure business by offering significant sums to managing agents placing business through them.
The issue has become so widespread that the insurance industry’s regulator – the Financial Conduct Authority (FCA) – has become involved, saying that the actions of brokers had been leading to “unfair costs” and “poor outcomes for leaseholders”.
The good news is that the FCA is looking to stamp out these practices, and regulation is expected soon that will make sure any commission payments are in line with the level of work being carried out, and the level of benefit to the end customer.
But this will be of little help to those who have already paid out large sums in these commission payments dating back years – with some estimates putting the value of these payments in the billions of pounds.
The good news, however, is that the FCA has also introduced new legislation allowing leaseholders to recover these historic payments, meaning that you could recover any payments that have been added illegally to your insurance premiums over the last six years.
I originally setup M2 Recovery to help commercial property owners recover similar payments added to their buildings insurance, and our experience in this market makes us the perfect partner for recovering any money you are owed.
Last year alone we recovered more than £2million from brokers and managing agents for our clients.
And because we work on a no win, no fee basis, there is no risk at all on your behalf and you won’t be left facing any hefty legal fees.
Personally, I have more than 40 years’ experience in the property insurance market, and I have been a long-standing and vocal opponent to the practice of secret commissions, which has become a stain on the reputation of the insurance industry.
Put simply, secret commissions are unfair, dishonest and illegal, and here at M2 Recovery we want to help you get the justice you deserve.