Is it true or can I shop around?

**PMK** · 21-03-2008 16:04 PM

I pay annual 'ground rent' via an agency in london. Each year I get an insurance policy sent to me by a company on behalf of their clients, ie. those I pay the lease to. This year it has gone up and is not a competetive quote. It's the usual buildings cover including common areas, of which the only common bit is a garden path. The agents advise that I can't go to another insurance company without paying a release fee, therefore they appear to have me by the ..... But I suspect that I can let this policy lapse and take out a new one that will meet and exceed the requirements of the previous policy and notify the agents I have done so. Can anyone confirm this? Otherwise I'm tied in to the deal which isn't right.

**jeffrey** · 24-03-2008 14:37 PM

Originally Posted by PMK

I pay annual 'ground rent' via an agency in london. Each year I get an insurance policy sent to me by a company on behalf of their clients, ie. those I pay the lease to. This year it has gone up and is not a competetive quote. It's the usual buildings cover including common areas, of which the only common bit is a garden path. The agents advise that I can't go to another insurance company without paying a release fee, therefore they appear to have me by the ..... But I suspect that I can let this policy lapse and take out a new one that will meet and exceed the requirements of the previous policy and notify the agents I have done so. Can anyone confirm this? Otherwise I'm tied in to the deal which isn't right.

Is your property a house, flat, or something else?
1. If it's a house, you can escape by using the s.164 of Commonhold and Leasehold Reform Act 2002 procedure.
2. If it's a flat, you're largely stuck- unless several of the lessees jointly apply to Court under the Right to Manage legislation.
3. All the above relates to Buildings Insurance, of course. Contents Insurance is always your own responsibility.

**tenant29** · 05-04-2008 07:43 AM

PMK,

What was the "release fee" demanded ?

Leasehold houses have the right to choose the building insurance company since Feb 2005 and you have serve a legal notice on the landlord company as Jeffrey has stated.

Leasehold flats can challenge the reasonableness of the building insurance by application to LVT but it costs 350 pds which should be shared with other leaseholders. You can make a written request for a summary of insurance cover and get a copy within 30 days. You can use this summary cover to obtain alternative quotes and use the alternative quotes as evidence at the LVT.

The alternative quotes must be for the same amount of insured cover or the LVT may decline to compare costs if "insured cover" is not like for like.

**bunter** · 25-04-2008 12:38 PM

My situation is similar, but the difficulty I've had is in actually obtaining alternative quotes. The brokers just don't seem willing to actually produce a quote, possibly because they do not want to annoy the company currently providing the very expensive buildings insurance for the freeholder. Any advice?

**paulb67** · 25-04-2008 12:56 PM

Hi Bunter

Brokers and insurers don't work like this, so you need to approach a few more. Type "Blocks of Flats Insurance" into your serch engine and this will give you some brokers. You can also try ringing a few insurers.

Is there something else about your property that might account for an unwillingness to quote? It may be that you need a specialist and I'd be happy to point you in the direction if you can post something more specific.

**bunter** · 25-04-2008 15:18 PM

Thanks Paul. I'm sure there isn't anything about our buildings causing an issue - if anything we are a straightforward case, modern buildings in a quiet area. I tried 3 brokers including 2 household names and 1 specialist and heard nothing back - as you say, I will have to try more. I'm just puzzled that these people aren't interested in the business.