Selling Flat - Fire Perils Insurance Policy

LynnB_2

Hello - wonder if anyone can give me any advice on this matter. A friend of mine is selling her first floor flat and the buyer's solicitor has said they want her to get a "fire perils insurance policy" put in place, before the buyer's will commit to the sale. We don't know why she as the seller should have to purchase this for the buyers? And not actually sure what it is? Be very grateful for any thoughts. Many thanks.

G_M

They may be referring to the fact that the building should be insured as a whole by the management company( if there is one), and isn't.

If they are just referring to your friend providing insurance between Exchange of contracts and Completion, tell them to insure it themselves!

LynnB_2

Thanks G_M. Have a little more information now. Apparently, my friend's neighbours who own the ground floor flat have refused to let the buyers solicitor see their buildings insurance policy, so the solicitors have said that "the policy is required in that the lease is defective with regard to the insurance provisions". They mentiond something about an indemnity?

DVardysShadow

LynnB wrote: »

Thanks G_M. Have a little more information now. Apparently, my friend's neighbours who own the ground floor flat have refused to let the buyers solicitor see their buildings insurance policy, so the solicitors have said that "the policy is required in that the lease is defective with regard to the insurance provisions". They mentiond something about an indemnity?

I know nothing about leasehold. Are the people downstairs the freeholder? Would the seller not have some sort of rights to see the policy?

Fire_Fox

LynnB wrote: »

Thanks G_M. Have a little more information now. Apparently, my friend's neighbours who own the ground floor flat have refused to let the buyers solicitor see their buildings insurance policy, so the solicitors have said that "the policy is required in that the lease is defective with regard to the insurance provisions". They mentiond something about an indemnity?

"Where a service charge consists of or includes an amount payable for insurance, an individual leaseholder or the secretary of a recognised tenants' association may ask the landlord for a written summary of the policy or an opportunity to inspect and take copies of the policy.
The request must be made in writing and the landlord must comply within 21 days of receiving it.

• where the request is for a written summary, the summary must show:
  • the sum for which the property is insured;
  • the name of the insurer;
  • the risks covered in the policy.

The landlord can only be required to provide the summary once in each insurance period (usually a year).

• where the request is for sight of the policy, the landlord must provide reasonable access for inspection of the policy and any other relevant documents which provide evidence of payment, including receipts, and facilities for copying them. Alternatively, the request may be for the landlord to provide the copies of the policy and specified documents himself and to send them to the leaseholder or association or arrange for them to be collected.

The provision of inspection and copying facilities may be treated as a management cost and therefore may be recovered through service charges.

Failure to provide insurance information or reasonable access

Where a landlord fails without reasonable excuse to comply with either a request for insurance details or to inspect or have copies of the relevant policy or associated documents, they commit a summary offence and are liable for a fine of up to £2,500 (level 4 on the standard scale) on conviction. Advice should be sought where action is contemplated."

http://www.lease-advice.org/publications/documents/document.asp?item=14