Buildings Insurance cover ... need help

Urbankittycat

I am trying to get Buildings Insurance for my flat that I am hoping to rent out on 1 April 2009. The problem is that I am getting conflicting information regarding what I should be covered for ... the flat is part of a 4-in-a-block building. Previously I have always covered for the building as a whole as I am the only one who owns the property whilst the others are council tennants but speaking with an insurance company today they told me their underwriter suggests covering just my flat. Surely this is wrong because if my tennant accidently blows up the flat and the other flats are ruined I would be liable for the whole cost of the rebuild (extreme case I know but it could happen with gas etc). Looking on various websites I am also reading different opinions regarding this so thought I'd ask if anyone out there knows what I should cover before I agree to any policies. Any help would be appreciated :j

D_Man_3

Who owns the freehold of the whole building? It would usually be down to them to insure the whole building. Not many insurers will insure just one flat but it can be done, AXA for example will insure a solitary flat, but you may find that cover is already in place through the freeholder.

The cost of insuring the whole building if there are council tenants in there would be a lot more than you really need to be paying.

dacouch

D_Man is right, it is recommended that blocks of flats are covered under the same policy or at the very least on seperate policies with the same Insurer. It is a nightmare if there is a claim otherwise.

Ask the freeholder who the cover is with, if the council own the freehold of the other flats and you own your freehold ask the council if you can add your property to theirs or ask who they are insured with and may be use the same insurer but explain it to them first when you get a quote. The council will almost certainly be insured with Zurich but normally with a very large excess

Urbankittycat

It will be South Lanarkshire Council I guess because of the other three properties being owned by them. I should contact their legal team to check this information before I go any further, I may have being overpaying insurance for the last 2 years but it was on the advice of my mortgage company at the time.

At the time I bought the flat , they did offer me insurance with them it might be worth doing that to prevent any further confusion. Really appreciate your help guys thanks.

dacouch

I didn't release you were in Scotland, I think the laws are slightly different there eg you do not have a freeholder for the whole property but each flat is owned by a free holder (I may be wrong).

If your tenant blows up the whole block the other flat owners insurers would pay for their own repairs. If they could prove your tenant was negligent they can sue you and your Insurers would pay out under the Liability Section of the policy.

It would still be good advice if possible to try and use the same Insurer as the council use which like I said is probably Zurich. Then if there is a blig claim such as a subsidence claim or a fire you won't have your Insurers and the councils Insurers arguing over who is liable for what. It makes the claim so much easier.