Flats Insurance - Did I get a good deal?

[GoP]

Hi. New to all this, just bought my first freehold block of 6 flats.

Had a few problems trying to find an insurer who dealt with blocks of flats. Finally got them insured with Brevent Insurance for £496.41 for £540,000 sum insured.

Did I get a good deal this time? I'm due to complete on another block soon and would appreciate some advice. Ta.

[Poppy]

Did you use an insurance broker to find insurers? That's a good and easy way of knowing if you got a good price.

OK so you have at least mentioned what I think you mean is the rebuild cost of £540,000. Please share with the members a few more salient points: postcode, construction, number of rooms, property age.

Good luck with your latest ventures.

[GoP]

Hi. Most of the brokers I rang had no idea about insuring a block of flats so ended up searching the web. A couple of the people I found took a week to come back with quotes, however having to complete contracts drove the decision making process that time.

Got a bit more time this time around to check things out.

The £540000 was how much to build them again. Its 6 flats built around 20 years ago.

Not sure how many rooms in the flats, but one hall entrance for the tenants. Theyr'e proper built flats, made of brick, not bedsits.

Hope that helps.

[Paul]

Interested in what you say but there a few points I would like to raise.

You say that most of the brokers you contacted had no idea about insuring flats. This is a point I find difficult to accept.Did you contact any of the insurers on this site? I am sure that most if not all of them would take exception to this comment.

The delay of a week to come back with quotes is something else that is unusual. Quotations are usually quick, especially for business that brokers want.

I am also surpirised that you purchased such an expensive property yet you do not know how many rooms there are. If I was buying such a place, this is information I would be acquainted with.

Finally, can I ask you if you have any connection with Brevent?

[GoP]

What question did I miss from Poppy? I don't know how many rooms exactly but would guestimate at 4 per flat, so 24 room.

The insurance company was Allianz Cornhill.

As for my 'shopping experience' as a beginner I started with the insurance section in Yellow Pages. Unfortunately only found this site last week on a trawl for new landlord info, which is now bookmarked for future info.

Need to find a cheap conveyancer who does a whole building in one go for the next purchase if the offer is accepted. Suggestions in advance welcome...

[welshgold]

What question did I miss from Poppy? I don't know how many rooms exactly but would guestimate at 4 per flat, so 24 room.

...

find it difficult to believe that you invested 1/2 million and dont know actual layout, also i would have thought insurers would want to know number of rooms and of what type,do you know if flats were 1 bed, 2 bed, i would have thought you would have had detailed look to asertain the above plus condition together with fire doors,alarm systems, smoke detectors, electrics, heating etc.

[GoP]

Think I understand the confusion, I've bought the freehold of the land and building, not the individual flats. I only get a ground rent and fees from the indivudal lessees, not an individual flat rent if that makes sense?

[Poppy]

Yes, we understand what a freeholder of a block of flats is.

This is what you have not answered:

Postcode. If you don't want to reveal the exact postcode you could simply state the name of the area.

Construction. Fair enough you say it is brick. But you have not specified whether the roof is pitched or flat. Tile, felt or thatch. With or without a basement.

Number of rooms. From an insurer's point of view this means bedrooms, living rooms. It does not normally include bathrooms and kitchens. Someone correct me if I am wrong on this point. An insurer does not want an estimate of the number of rooms.

Property age. OK so you think it is approximately 20 years old.

You clearly have quite a bit to learn in your newly-chosen industry. You need to focus a bit more on attention to detail. Your lessees will climb on your back otherwise.

[GoP]

Poppy
Thanks for the guidance.
Postcode: Warrington WA2
Construction: Brick with a normal ^ tiled roof
No. of Bedrooms: Each of the 6 flats has one bedroom, lounge, kitchen and bathroom. No basement.

Specialist, as one of the experts on this any further feedback? Anything else I should check? Much appreciated ta.

[cknight@leaseguard.co.uk]

Next time you are looking, feel free to contact us as we should be able to sort out a competitive quotation, as long as we have all the property details.

Our contact details are at www.leaseguard.co.uk