Insurance on a shared freehold property

smileykate_2

Hi there,
I'm about to purchase a share of the freehold of my property (it's going through by the end of the week) and am looking into buildings insurance - I am totally confused!

Up until now, the freeholder paid for the buildings insurance and split the bill between me and the people who own the downstairs (they rent their flat out via an estate agent). Is it best for us to do the same again or should we each purchase separate buildings insurance? It seems to make sense to have one policy but I just logged on to the Tesco website to get a quote and one of the first questions was 'Do you rent the property?' - this is tricky because I live in my property and they rent theirs out.

If anyone has any advice about this I'd be really grateful!

kingstreet

The owner of the freehold, whether that be a firm, individual or a collection of individuals should obtain block buildings insurance for the whole property.

The cost for the cover would then, normally, be split between each leaseholder.

Such cover normally allows the leaseholder to live in the property, or for it to be let.
You need a broker, or a commercial site for block cover.

http://www.assetsure.com/blocks-flats-c.htm

The above link is one I found with a simple google. I know nothing about them, so no recommendation implied.

smileykate_2

Thanks very much - I'll check this out right away

dacouch

If you don't have a block policy (You can buy one from a local broker avoid Swinton though) at the very least make sure you both choose the same Insurance company for building insurance.

This is because there are often claims that encompass the whole building or say just the roof. You can imagine the problems if there are separate Insurers arguing over who is responsible.

rs65

smileykate wrote: »

Up until now, the freeholder paid for the buildings insurance and split the bill between me and the people who own the downstairs (they rent their flat out via an estate agent). Is it best for us to do the same again or should we each purchase separate buildings insurance?

Best to do the same again. Might be worth asking the current freeholder who their insurer is and approach them.