Rights to challenge Landlords choice of Insurers

enayatali

Can a tenant challenge a Landlords choice of Insurer with respect to renewing Building Insurance when the premiums payable in respect of any such Insurance are excessive. Do we have rights to request a copy of a policy summary to inspect?

We have requested for a policy schedule from our Landlords Insurers, when the premium was too excessive, and they have responded by asking us to pay half the premium which is due before willing to release the policy schedule. Can this be right?

Any feedback would be much appreciated.

daveyjp

The RICS are currently loking at this very issue. Landlords are suspected of taking huge bonuses from the insurance comapanies as this area is poorly regulated.

jonesMUFCforever

Whilst I agree with daveyjp at the end of the day it is his/her property. They should be free to choose the insurer of their choice just as you have the right to move elsewhere.

woodys_wonders

As the building is owned by the landlord he/she has a right to Insure where they desire and pay whatever they want.
I would however not expect them to then request the tenant to pay for this cover

daveyjp

woodys wonders - landlords don't pay the premium, occupiers do and this is the rub.

Landlords are suspected of purchasing insurance based on the commission they earn (paid for by occupiers) and not on the level of cover.

brightonman123

there is (or was, 5 yrs ago) BIG commission on household insurance, which tends to lead property manangement co's to use just one insurer, for enhanced rates.

Premiums usually taken up front from any rent account, then recharged th lessees.

Whether the landlord sees any of the kickback in cash is another thing, but I am sure any owners with large portfolios get a nice xmas pressie and lunches etc..

I think LL/PM's should provide proof of cover - perhaps a legal requirement, if renting/leasing out.. there maybe a small admin fee due.

I often saw lessees complaining about their share of the buildings premium (as part of annual service charge budget).. sometimes the rate per £1000 cover got amended down a bit, but I never heard of lessees getting their own insurers to take over..

dacouch

It is actually possible to challenge the Landlords Choice of Insurer but it can take a while to sort out and be expensive.

An alternative is to buy the freehold from them and set up a residents association if its a residential property.

If its a Commercial Property most landlord will include the part of the premium that covers Loss of Rent (This pays loss of rent if there is a damage claim). Your lease will normally say you are not responsible for this so you can normally get this part of the premium waived if you challenge it (Read you lease).

Another alternative I find often works is to find out which Insurer the cover is with, then get a quotation from another broker for EXACTLY the same cover with the same details (It often works out dramatically cheaper). You can then present this to the landlord and ask them if they will use this broker instead. As you are using the same Insurer in theory they should have no problem swapping. They will often not realise its expensive as they have just had the same policy for years and years.

Have a read of this http://www.thisismoney.co.uk/mortgages/buy-to-let/article.html?in_article_id=409465&in_page_id=56