buildings insurance for flats

bally1

The deeds for my flat state that as i'm in a block of 4 we all have to be insured by the same insurance company, in my case it states Norwich Union (Aviva). Does anyone know if there is an independant body where I can check if the price they charge me is fair, as i have no choice with who I use. I currently pay £230 buildings only for a 2 bedroom flat in a reasonable area of Bath, which appears more than most people I speak to pay for both Buildings and contents.
I understand that in the event of a fire that 4 propertys would possibly be affected so they could possibly justify my insurance being higher than a 2 bedroom detached property. But comparing to my parents 3 bedroom semi detached, where in the event of a fire only 2 propertys would be affected, the difference is huge considering that the market value of these 2 propertys is approx the same as the 4 flats in my block (my parents pay less for their building and contents insurance than I do for buildings).

dacouch

How old is the block of flats and what are the walls built of eg stone or brick

bally1

Technically it's a maisonette with brick walls. It was built in 1975.

dacouch

Flat roof by any chance

missile

£230 seems rather expensive. I guess you have a management company? Suggest you ask them to look for a better deal.

Dangermac

What bit of the building are you insuring? Roof/Foundations/Walls?
This is the the reason why I would strongly advise against individuals insuring individual flats for buildings insurance - instead it should ideally be a block policy, arranged by the Freeholder (Management Company?). The danager of seperate policies are:

1. You insure, but the other flat owners dont
2. multiple policy excesses to pay in the event of a claim (i.e each policy)
3. Incorrect sum insured in inevitable (i.e too high or too low) - just because you occupy the top flat doesnt mean that you shouldnt be covering the foundations. Just because you own the lower flat doesnt mean you shouldnt insure the roof.

4. Potential of confusion because of multiple claims for the same incident - which policy pays which amount??

If a joint policy is possible, that would the preferred route I think

DM

cogito

Dangermac wrote: »

What bit of the building are you insuring? Roof/Foundations/Walls?
This is the the reason why I would strongly advise against individuals insuring individual flats for buildings insurance - instead it should ideally be a block policy, arranged by the Freeholder (Management Company?). The danager of seperate policies are:

1. You insure, but the other flat owners dont
2. multiple policy excesses to pay in the event of a claim (i.e each policy)
3. Incorrect sum insured in inevitable (i.e too high or too low) - just because you occupy the top flat doesnt mean that you shouldnt be covering the foundations. Just because you own the lower flat doesnt mean you shouldnt insure the roof.

4. Potential of confusion because of multiple claims for the same incident - which policy pays which amount??

If a joint policy is possible, that would the preferred route I think

DM

That's exactly right. You can't insure just one part of a block of flats. I assume that this is what the deeds are referring to when they require that there should be only one insurer.

To answer the specific question, I don't understand how the deeds can stipulate the insurer to be used. Whenever I have seen a requirement that a property should be insured (as in a lease, for example), the stipulation is usually that cover should be placed with a reputable insurer - whatever that may mean.

sarah_elton

Dangermac - I assume that the OP is paying a quarter of the full bill. I.e. Aviva charge £920 a year for the building and each flat pays £230. If the property is owned leasehold, individual flat owners cannot take out buildings insurance for their flat as they have no insurable interest; they don't own the building. This is why it is the freeholder (or management company on their behalf) that takes out insurance, although it is normal for the cost to be passed along through the service charge.

OP - if you have a management company I would ask to see quotes from alternative insurers at renewal. Seems like a lot of money to me. When I owned a flat I was in a block of six. My annual service charge was around £800. I'm afraid I can't remember how much of that was for buildings insurance but it was certainly nowhere near a quarter. :eek:

Dangermac

Sarah - having read the original post again, I think you are probably correct.

dacouch

bally1 is the roof on the block a flat roof or a pitched roof?