Long leasehold insurance puzzle?

[Mrs Dingle]

Hi,I have posted before about this particular tenant but the circumstances have changed.I purchased the freehold of a block (2 houses )and 4(flats)in December last year.I have insured the whole as a block policy and split the cost 6 ways.All tenants are happy with this as they have always paid a porpotionate part of the insurance .Appart from one.The other tenant I have discovered has taken out their own insurance which means that there is some duplication of insurance.After discussion where I pointed out that their lease states that it must be covered by a block policy they agreed to change and cancel their insurance and pay part of my block policy.I have not been able to collect ground rent from them and I have since found out that they deliberatly flooded their house some time ago in order to claim a new kitchen from the insurance company so I,m not pushing to have them aboard BUT.I cannot compromise the insurance position of the other tenants to fit in around them and I just want to do the right thing legally and correctly.Especially as this is at the beginning of the tenant/landlord relationship and I want to get it right .Do I insist on her cancelling and hope she will pay up or do I insure only the 5 and keep seperate.I would be very grateful for your comments.Mrs Dingle

[Poppy]

Always rely on the terms of the leases.

I am guessing that you as freeholder have an obligation to insure and keep insured the block. I am also guessing that you can recover the cost of the premium by way of the service charge. When your lessee realises that she'll have to pay your insurance she'll soon cancel her existing policy.

If you suspect in future that the lessee is taking the p!ss with claims there are steps that you can take to bring her in line.

Simply keep to your obligations as freeholder.

By the way when you purchased the block in December, were the lessees entitled to a refund from the previous insurance taken out and cancelled when the previous freeholder sold? Did your solicitor sort that out?

[Mrs Dingle]

Thank-you for your reply.My solicitor did not get invloved with the insurance or ground rents.The previous landlord/freeholder cancelled his block insurance and passed the balance of the payments to me.I informed the tenants what was happening by letter and in person and they understood and I have insured the block and given them the details.All except the one which have their own insurance.They had not payed any money to the previous landlord and so he is still owed an amount of money.They have lent me a copy of their insurance certificate so that I can photo-copy it and inform my insurance of the situation.I advised them to do the same as I understand that it may be illegal to be insured twice.Ironically they insure with Zurich who also covered the block insurance with the last landlord.I was a liitle suprised that the insurance company had not picked this up.My block insurance is with MMA.I have read the lease over and over again and it clearly states that they must be covered by a block policy although it does not say the proportion that must be paid.Repair and maintenance clearly states one sixth.Regards Mrs Dingle