Complete 9 days - totally forgot insurance!

jodenice

We complete on the 30th March. However, sitting here browsing through some of the posts I've realised I haven't arranged any buildings insurance. I presume I need to get this sorted now in order for the completion to go through? We are buying a flat with a 50% share of the freehold (but its not the usual type where you've bought into a management company its just us)

any suggestions? And recommendations if there are any good deals!

LisaT186

Is the building not already insured? Usually you buy a block policy to cover the whole building and then individually purchase contents, so chances are the two existing owners have something in place.

Have you exchanged? If you have your solicitor should have had confirmation that the insurance is in force, mortgage companies won't release funds without proof.

If you do need a policy you will need a broker to sort a 'block of flats' policy for the buildings.

jodenice

ah there was something he mentioned when we were getting ready to exchange - it had to be delayed because the insurance had run out.

So what will this mean - that I just take over the current insurance policy? Don't I get to shop around?! Also, re block policy - we have one house divided into two flats - will this still apply?

Sorry I quite obviously haven't got a clue!

spunkeyrich

if your buting half a house there will be a lease for both parts and an insurance for the whole, payment of which will be as a maintenance charge of a yearly amount, in the maintenence charge it will show you what you are paying for and my guess is building insuance is in it. a freehold flat is a dodgy thing to buy as insurance companies dont like to insure them.

ill explain a bit more. say you insure your flat on the first floor and all is good, then the ground floor flat gets subsidence, your flat is affected but the ground floor has no insurance, its the drains that cause the problem, first floor although has insurnace the whole building has not. hence you need to find out the insurance for the whole building and divide the cost between both parties.

rich

LisaT186

Yes you do get to shop around, but you need to speak with the other flat owner to see if they want to have involvement as it will be a joint decision between both of you. It depends on who takes responsibility for arranging it. You need to establish who is responsible for the 'management' of the property. Usually one flat owner sorts it and charges the other half the premium.

Yes you will still need a block policy, albeit it is a block of two flats, assuming that you both own leases on your property and then a 50% of the freehold separately.

if you have now exchanged I would have thought that the other flat owner had sorted it for this year, but obvioulsy check with your solicitor that this is the case.

jodenice

Right just checked, the insurance is paid up until January 2008 and they will be charging me a portion from when I move in on March 30, about £100, does that sound about right.