Leaseholder's Contents Insurance that covers Landlord's Fixtures and Fittings

mr_marco_polo

Hi, I've recently bought a leasehold flat and noticed that the lease states that the Landlord will only insure the building fabric and I am responsible for the "fixtures, fittings and decorations." However, when I look at traditional Contents policies, these usually explicitly exclude this cover. Actually, I think most leaseholders probably have a similar provision in their lease but don't realise that the normal contents insurance they are buying has this gap in cover (technically a breach of the leasehold agreement as well!). From what I've been told leasehold doesn't appear to be treated as "renting" which is where Contents cover a landlord's fixtures and fittings, although I would argue the wording of Leasehold agrements sure seem to suggest that you technically are...

Nonetheless, I am sure there are policies out there that specifically do cover this and I would appreciate a steer as to how to access these online and not through a broker. Can anyone help?

huckster

I think you are making this more complicated that you need to.

Basically this is the standard situation where you are buying the leasehold and the freeholders cover the Buildings. This leaves you to cover the inside of your own property e.g Kitchen, Bathroom, other fitting & fixtures, as well as your own Contents.

All you need to do is arrange your Contents Insurance by phone and discuss your requirements. You need to tell the Insurers or broker, that as the property is leasehold you need to cover the inside fittings and fixtures as well as your Contents. The Insurers will note the policy to include cover for these fitting and fixtures. So you need to estimate the replacement cost of these. Don't forget if you have a shed and/or greenhouse, to include these as well.

Make sure you include full accidental damage cover on the policy.

mr_marco_polo

Thus far I've spoken to More Than (RSA), AXA and Zurich directly and they all stated that Landlord's Fixtures and Fittings can't be covered under their Content's policies for a leasehold situation.

You seem to be quite knowledgeable in this department and I would really appreciate you sharing the names of some insurers who will. Thanks.

huckster

You may have difficulty in covering landlords fittings and fixtures under your own Home Insurance. Whilst you have Insurable interest in these conveyed to you in the leasehold contract, the Insurers would ask exactly what they are being asked to cover. You would need to be able to say what you needed to cover and what the value of these are. You need to ask the freeholder or their managing agents.

I am not sure you are being asked to cover the landlords fittings and fixtures. My experience of leasehold properties is that you Insure everything contained in your property, being that you own them during the period of the lease. If the flat was damaged, you are legally responsible under your leasehold agreement, to rectify the damage.

You should speak to the freeholders or their managing agents to seek clarification. Until you do this, you don't really know for sure, what cover you need to arrange. Once you have this information, go to a decent broker ( not Swintons) and they will give you proper advice. The problem with most Insurers telephone helpline staff is that they are just there to sell policies. They don't often have much experience to able to answer any technical questions.

You should avoid More than and Zurich like the plague, as they don't have the best reputation.

mr_marco_polo

Thanks for the advice. I also realise that I should get a copy of the insurance policy that the freeholder is asking me pay for. I bet that they are trying to get me to struggle with something that they've already covered and had me pay for. The freeholder's managing agent didn't seem 100% honourable.

FlameCloud

If I get a domestic visit it is for Property Owner policies (the type your flats would be covered under) and I have not seen one yet that would not cover any leaseholders bathrooms or decorations and the like.

I would suggest you read your lease carefully- if you are compelled to pay the buildings insurance within it (more than likely) then you are counted as a co-insured under the Berni Inns principal, which in essence means you get the benefit from having a buildings policy as well.

huckster

Flamecloud

Some Insurers (Aviva & RBS Insurance group Ins) used to be able to include cover for internal fitting and fixtures, which would normally be classed as under Buildings. They do so on the grounds that the leaseholder cannot Insure the Buildings as the freeholder has cover and leaseholder have responsibility for their own Kitchen & Bathroom etc. This can also apply to those people that are council tenants. Council tenants are able to install their own kitchens and the councils Buildings Insurers won't cover these. So the tenants if they want to Insure the Kitchen have to approach their Contents Insurers.

This is not something that is asked for that often. People living in leasehold properties don't often have much knowledge of what they are personally responsible for, so they don't ask.

FlameCloud

I have 5 blocks of flats policies here, written by 5 of the top brokers in this area, and not a single one of them makes any distinction between the main building fabric and the interior fit outs- the most one of them goes to say is that carpets are not included unless they belong to the free holder.

As I said, if they want to get technical about it, the Berni Inns principal means the leaseholders will be able to gain benefit of the policy as if it were there own and since I don't know one that excludes one I would have to conclude they would be covered under the landlords policy.

mrlandlords

This is a fantastic example of why insurance brokers are a valuable function to society and the financial world. Feeholder and Leaseholder are a particularily confusing legal status at best and combined with insurance it means that alot of leaseholders aren't adequately covered. The best way to make sure you have the correct landlord insurance or tenants contents insurance is by talking to a professional and then taking their name. Going to an online comparison site is all well and good if you have a three bed semi to insure that you live in but in this case it is not suitable.