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View Full Version : Property insurance- two blocks, each inc. flats/houses



Mrs Dingle
02-02-2007, 22:44 PM
Hi, I currently hold the freehold of two blocks of properties.Each block consist of 4 flats and 2 houses.One house at each end of each block and the flats are between them two flats ground floor and two flats firstfloor.So twelve properties in all. The leases state that the insurance must be a block policy divided between six(the two blocks treated seperatly) and that the insurance must have £100 excess and £1000 for subsidence.This I have done and can show records.My question is? I understand that a HOUSE holder can insure their house themselves because of landlords claiming expensive insurance.I have read that in cases such as this that they can insure themselves but both insurers must be made aware.To avoid the dual fraud situation.What are the rights of the house on the end?Regards Mrs Dingle

Poppy
03-02-2007, 11:28 AM
Do I correctly understand these houses to be subject to long leases? In that case, then you must insure them as the lease states.

Mrs Dingle
03-02-2007, 14:06 PM
Thank-you for reply.So no right at all for the long leasehold (99years)to insure their house themselves.I know they had with the previous landlord and that bit of the property was insured twice.Interestingly by the same insurance company who didn,t pick this up.Despite there being claims!The insurance is due on 01/07/07 and I wanted to be sure where I stood.Thanks.Mrs Dingle

jeffrey
04-02-2007, 13:45 PM
Thank-you for reply.So no right at all for the long leasehold (99years)to insure their house themselves.I know they had with the previous landlord and that bit of the property was insured twice.Interestingly by the same insurance company who didn,t pick this up.Despite there being claims!The insurance is due on 01/07/07 and I wanted to be sure where I stood.Thanks.Mrs Dingle

You are OK. See s.164 of Commonhold etc. Act 2002.
That will not give T right of independent insurance if lease doesn't require T "to insure the house with an insurer nominated or approved by the landlord".
In your case, the requirement is a block policy so the terms of s.164(1) are not satisfied and the lease will prevail.
However, Schedule to LTA 1985 will apply, except - again - para. 8 thereof won't (because it relates to where L has only insurance nomination rights for T who has to insure- in your case, L has to insure because lease says so.)

specialist
05-02-2007, 07:36 AM
I think my other posting clarifies this good luck specialist@deliteinsurance.co.uk
Flat owners may be individually insuring their property in a block of flats with some direct insurers; a move that one broker believes amounts to unethical practice.

Neil Cook, of independent intermediary Delite Insurance Agency, claimed that taking out individual building cover for a flat in a block was unethical and accused some direct writers of mis-selling cover.

He commented: "This leaves major issues about reinstatement, if there is a claim for example, and it is also not giving good advice. The public needs to be made aware of this and brokers should also be aware and use it as a tool to get back into the market."

Mr Cook became aware of the problem when managing the insurance for a client's premises: "I was surprised when he said his bank had persuaded him to take out building cover when he arranged his mortgage with them four years ago. This was despite living in a flat that was part of a block of eight.

"Lenders are not supposed to insist that you take out building insurance, but word their letters to make you think that you should."

Traditionally, a flat is insured as part of the block and often flat owners pay insurance as part of their service charge: "I have heard of cases of insurance being paid as part of the service charge and charged by the lender too," added Mr Cook. "It is overly unnecessary and complicated if people are enticed to insure single flats because they don't realise that they may already be covered. I would say that about 25% of flat owners are dual insured."









Hi, I currently hold the freehold of two blocks of properties.Each block consist of 4 flats and 2 houses.One house at each end of each block and the flats are between them two flats ground floor and two flats firstfloor.So twelve properties in all. The leases state that the insurance must be a block policy divided between six(the two blocks treated seperatly) and that the insurance must have £100 excess and £1000 for subsidence.This I have done and can show records.My question is? I understand that a HOUSE holder can insure their house themselves because of landlords claiming expensive insurance.I have read that in cases such as this that they can insure themselves but both insurers must be made aware.To avoid the dual fraud situation.What are the rights of the house on the end?Regards Mrs Dingle