Buildings Insurance for shared freehold

enterthe

I own 50% of a freehold for a building consisting of two flats.

In the past, the buildings insurance has been shared between the two flats, but I would feel more comfortable just having my own policy (for example, with all the little questions, how am I supposed to know whether or not the other freeholder has every made a claim, been rejected for insurance etc...)

If I get buildings insurance, does it need to be for the whole building, or for my part of the building, and do I need to get a join policy with the other freeholder?

I almost managed to get a quote from Direct Line before my phone ran out of batteries. The telesales guy didn't seem to know much about these situations, but having a joint policy would have prevented me from getting the discount that people get from having home insurance with them too.

Richard_Webster

READ YOUR LEASE!!!!

If the lease says that the landlord has to insure the whole building then you and the other co-freeholder are the landlord so you have to have a joint policy for the whole building.

If it says that each lessee should insure his own flat then that is what you do.

And yes, you have got leases because other wise no solicitor in his right mind would ever have advised you to buy the flat!

G_M

Plus the practicalities of claims becomes a nightmare with separate policies. The two insurers will bicker about who is responsible for what.

Damage to the roof? Upstairs flat's policy obviously. Errr, no, not if the lease says roof maintenance of roof is joint responsibility. There again, poorly worded lease could easily leave ambiguity on precise responsibility.

And waht about 3rd party cover? Leak from upstairs causes damage downstairs. Downstairs owner makes claim, his insurer seeks to claim off upstairs owner who 'caused' the leak. Upstairs owner passes claim for 3rd party liability to HIS insurer, who refuses to pay out because....... nightmare!

One policy is MUCH easier.

enterthe

Thanks for the reply guys. The shared freeholder appears to be ignoring me on this issue. I've left him notes. Knocked on his door. And he won't open it even though his window is open. I assume he isn't deaf as he likes listening to music.

What am I supposed to do if he refuses to do anything? Will I just have to get a single policy for myself and hope nothing bad happens?

@Richard Webster - I can't find anything in my lease. But a letter from my solicitors does tell me that I "should" get a joint policy.

Richard_Webster

@Richard Webster - I can't find anything in my lease. But a letter from my solicitors does tell me that I "should" get a joint policy.

That is quite surprising! There will be a set of covenants by the Tenant/Lessee and a set of covenants by the Landlord/Lessor. Look at the Landlord's covenants first. One of them should be that he will insure the building against loss by fire and all the other usual risks and rebuild and reinstate if damage caused by an insured risk occurs. If your solicitor told you that you should have a joint policy then that's where it should be.

If there is nothing at all in the lease about insurance then your solicitor should not have let you buy a flat with an unmortgageable lease.

You have actually got a copy of the lease itself haven't you? It will be a longish document running to quite a few pages and unless it is quite new will start something like "This Lease is made this......day of ........ 19... Between AB of .....(hereinafter called "the Lessor") and XY of..... (hereinafter called the "Lessee")......"

G_M

enterthe wrote: »

Thanks for the reply guys. The shared freeholder appears to be ignoring me on this issue. I've left him notes. Knocked on his door. And he won't open it even though his window is open. I assume he isn't deaf as he likes listening to music.

What am I supposed to do if he refuses to do anything? Will I just have to get a single policy for myself and hope nothing bad happens?

@Richard Webster - I can't find anything in my lease. But a letter from my solicitors does tell me that I "should" get a joint policy.

1) Spot him coming in/going out and get chatting. Informal resolution is best.
2) Write him a letter and send it recorded delivery. Include copy of lease highlighting relevant part (as per Richard's post)
3) Give up and buy separate policy - last resort. Consider getting cover for the full re-building cost (not just your half) in case the there's a fire and he has no insurance, though I'm not sure your insurerer would not in any case refuse to pay out full rebuild value. I think they'd only pay out your half.