Buildings insurance in a leasehold

EggMella

Apologies if this is the wrong place for this question....

I currently have a flat in a leasehold property which I rent out to tennants. Each year I pay £500 to the leaseholder which is broken down for me as £100 for ground rent & £400 for insurance.

The question is do I need to take out my own insurance policy for the building or would this be covered by my existing insurance payments..... I guess I have to ask the leaseholder whats covered?

dacouch

You should be covered by your exising policy but you should check, it is best to put it in writing. Ask if the policy includes cover Loss of Rental Income, this pays your loss of rental income following a damage claim eg your flat burns down.

The Insurers probably will not cover certain types of tenants typically Asslym Seekers, Students and DHSS / Council so ask them if there are any restrictions in your letter.

P.S £400 a year is a big premium for a leasehold, you must have a very high sum insured and / or flat roof or the landlord is asking you to pay to big a portion of the premium. Post on here what your sum insured is, the type / age of the propert, whether it has a flat roof and which Insurer it is as we may be able to make some recommendations

EggMella

dacouch,

That's a great offer, thanks. I've written to the leaserholder asking for this information, will let you know once it's available. FYI it's a 4 storey (each floor split into flats) semi-detached townhouse...

dacouch

EggMella wrote: »

dacouch,

That's a great offer, thanks. I've written to the leaserholder asking for this information, will let you know once it's available. FYI it's a 4 storey (each floor split into flats) semi-detached townhouse...

That means in theory there are four flats each paying £400 so the total insurance is £1600. The building must have a sum insured of around £1m so around £250000 re build cost for each flat. It must be a big building and each of the flats must be big.

Unless you have had lots of claims