Wimpey house, lessor Simarc and Cox Braithwaite insurers

NiteRider

My partner and I have been living in a George Wimpey home in Northern Ireland for several years. We were informed by our solicitor that there is a covenant in the deeds that the ground rent lessor, Simarc Property Management Ltd, specified that we have to use a company called Cox Braithwaite for buildings insurance.

I have been discussing this with our neighbours. They have spoken to other householders in our street who are in the same position and apparently these people have been using other, much cheaper, insurance providers.

Our neighbours told me that about 4 years ago they tried using another provider but then they received rather aggressive phone calls and letters from Simarc threatening legal action. At the time they switched back to the designated insurance providers, Cox Braithwaite. However they subsequently read in the Daily Mail’s Money Mail that apparently some law was going to be changed so that such restrictions would not apply.

After this my neighbours switched away again to another insurance provider and this time they were not pressurised by Simarc. They have been searching in the Money Mail but have not seen any further references to legal changes.

My original solicitor had said that, since there was a deed of covenant signed, any householder who did not use the specified insurance provider could be sued for breach of covenant. On the other hand, however, she said that she knew of some people who were using other providers and no action had been taken against them but of course she didn’t recommend this. She also mentioned that I could pay a fee to the lessor to get rid of the restrictive covenant but naturally I would have to talk to Simarc about this (and pay a £40+ fee for an estimate!)

I have a couple of questions:-

Are there any other MSErs in a similar position i.e. Wimpey House, paying ground rent to Simarc and tied to a specified insurance provider?

Since my neighbours have not had any further contact from Simarc, does anyone know of any such legal changes to which I referred?


I will appreciate any useful advice.

Regards
NR

paddy's_mum

I did reply to this yesterday but once again, my words disappeared off into the ether somewhere! Can anyone tell me why that happens?

I would think that it would be extremely expensive for the insurers to sue you for breach of covenant, and if they were to go after you, one would expect them to sue all your neighbours too!

Why not try it and see what happens? Alternatively, why not write to Money Mail yourself and see if they can shed any light on the issue.

It certainly seems an odd covenant given that any profit made by Simarc could so easily be swallowed up by the costs of suing any householder not complying.

Remember too that breach of covenant is a civil matter and you are in no danger of being sent to prison for six months if you fail to comply. Good luck.

NiteRider

Thanks for the reply, paddy's mum. As you suggest I may write to Money Mail. In the meantime my partner and I will consider trying another insurance provider.