Buildings Insurance for a Leasehold Flat

carlaeliza

It was said by our brooker who arranged the mortgage, and then the actual insurance company didn't say anything. What surprises me is they now dont issue buildings insurance to flat owners which i realised last night as i tried to get a re quote on there website, so they obviously do realise they are selling me something unessential. I found several blogs and others who were unaware like me. I feel really stupid, but ive been advised on another blog to write and complain as they should have highlighted it to me at every renewal!

kingstreet

I disagree with a fair amount of that post. The insurer isn't responsible for telling you if you need to take, or if you continue to require its cover. It's the responsibility of the policyholder to ensure the cover still meets his/her needs.

The resolution of this issue depends on how the cover was arranged. You mention the involvement of a broker. Did the broker arrange the cover for you and was it an advised sale? If it was, the broker should have taken reasonable steps to ensure the cover was needed by first checking with your solicitor that the buildings insurance wasn't provided in the terms of the lease.

It is so unusual for a purchaser to insure a flat individually, I'd certainly have asked a lot of questions before I arranged cover for you.

Your first point of complaint should be the broker. Ask them why they recommended the cover and what investigations they carried out to ensure you needed it.

If this wasn't an advised sale and you've simply taken your own cover on the word of the mortgage broker, you'll need to write to the insurer. I would enclose details of the block cover you have been paying for since you purchased the property, explaining you would have been unable to claim on the individual policy and it was duplicated cover. Your solicitor may be able to assist with a letter confirming this was the case.

They may refund the premiums from inception as a goodwill gesture. I would avoid suggesting they have done anything wrong. If you took out the cover without advice and they simply provided what you asked for, they aren't responsible for your buying decision and ultimately I believe the Financial Ombudsman Service would agree with them and reject any complaint.

Martin81162

There are instances of leaseholders having to take out buildings insurance for their flats. Some local authorities specify this when a tenant uses a rtb. Sounds like you need further advice and a good look at the lease.

westv

Martin81162 wrote: »

There are instances of leaseholders having to take out buildings insurance for their flats. Some local authorities specify this when a tenant uses a rtb. Sounds like you need further advice and a good look at the lease.

I can imagine that ending up a complete nightmare if there was ever a claim.