Landlord ins question

Miss_Poohs

Last year I bought l/l ins but had to buy the local authorities buildings insurance as well as the property was covered by a block insurance.

Is l/l ins sufficient or do you need separate buildings ins too?

I've been told I can opt out of the block ins but have to tell them ASAP.

Thanks

Miss P

G_M

Have you compared
a) the respective costs of your LL's insurance vs the block insurance and
b) the respectivecover offered by the two policies.

That's the only way to decide.

Miss_Poohs

Up until last yr there was no choice with the council as we had to take the block ins but I'm guessing now as I can opt out I only need one policy, and as the house is let I thought landlord cover would be a wiser choice.

Is this a wrong assumption?

propertyman

Miss_Poohs wrote: »

Up until last yr there was no choice with the council as we had to take the block ins but I'm guessing now as I can opt out I only need one policy, and as the house is let I thought landlord cover would be a wiser choice.

Is this a wrong assumption?

Yes !

Your lease will require the landlord to insure and for you to contribute to that, so there is no opt out. It is extremely rare for a council lease not to require this and the exceptions are usually simple buildings of a few units or flats over shop parades

As always read the lease first....

You can request a copy of the policy from the council and then compare that with what needs you have, or liabilities and insure as you require. Watch out for the excess on the council policy though.

EG A neighbour owns a carpet shop, the flat above had a leak and the tenant/landlord only a basic cover resulting in them being sued for a huge sum to replace stock, and may result in them selling the flat to pay for it...!

G_M

Miss_Poohs wrote: »

Up until last yr there was no choice with the council as we had to take the block ins but I'm guessing now as I can opt out I only need one policy, and as the house is let I thought landlord cover would be a wiser choice.

Is this a wrong assumption?

Have you compared
a) the respective costs of your LL's insurance vs the block insurance and
b) the respectivecover offered by the two policies.

That's the only way to decide.

Oh- and as suggested abov, read your lease too.

Miss_Poohs

propertyman wrote: »

Yes !

Your lease will require the landlord to insure and for you to contribute to that, so there is no opt out. It is extremely rare for a council lease not to require this and the exceptions are usually simple buildings of a few units or flats over shop parades

As always read the lease first....

You can request a copy of the policy from the council and then compare that with what needs you have, or liabilities and insure as you require. Watch out for the excess on the council policy though.

EG A neighbour owns a carpet shop, the flat above had a leak and the tenant/landlord only a basic cover resulting in them being sued for a huge sum to replace stock, and may result in them selling the flat to pay for it...!

Not sure I've made myself clear here, I am the landlord not the tenant.

The property I own and let out is ex local authority.

Up until last year the council forced home owners to tie into a "block buildings insurance" - however this was challenged last year as the block insurance is expensive and the cover fairly minimal, so it now transpires that provided you give the council enough notice you can indeed opt out of the block insurance and shop around for your own cover.

My question is, surely you don't need to buy buildings insurance AND landlord insurance?

G_M

No misunderstning at all. You need to compare

a) the respective costs of your LL's insurance vs the block insurance and
b) the respective cover offered by the two policies.

That's the only way to decide which is best for you.

(sigh!)

Miss_Poohs

Really? I didn't think a standard building ins policy would cover your property with tenants living in it.

I'll dig out the policy standard policy and read through it carefully, although from memory it's no great shakes.

Ta muchly

phill99

Miss_Poohs wrote: »

Not sure I've made myself clear here, I am the landlord not the tenant.

Yes we get that.

You need to have buldings insurance. That is already provided by the local authority as the freeholder of the block. They have an obligation to provide that and I assume that the cost of it is recovered via a service charge.

You need other insurance to cover your furniture (if furnushed) or white goods and things such as malicious damage etc.

You need to find out what the LL insurance is covering.

propertyman

Miss_Poohs wrote: »

Not sure I've made myself clear here, I am the landlord not the tenant.

The property I own and let out is ex local authority.

The term block insurance suggests that it is a flat or maisonette; if so then to your tenant, you are the landlord, but even though you own the flat you are a leaseholder, who has a landlord, the council, who owns the freehold of the building and insures under the terms for the lease you have.

or are you saying it is a house and you own the freehold?

Miss_Poohs

To be honest I think the council were being a tad naughty as they were applying block insurance to all properties not just flats, and that is what they were challenged on and lost.

In my case the property is a semi detached house both of which are bought, which means both owner occupiers are not required to purchase from the block building insurance, but are free to shop for their own.

The council aren't the freeholder - and no service charges are due to them.

I really need to reconsider my position which has changed some what from last year in that this time my property will be let unfurnished.