Contingent Buildings Insurance Indemnity

Sobewannabe

I was hoping that someone may be able to help.

Part of the sale of my maisonette the buyers solicitors have requested that I have this insurance in place before we can proceed to exchange.

Does anyone know where I can purchase this insurance from and do I need it just up to the completion of the sale?

This was never a problem when I purchased the flat 7 yrs ago.

What sort of costs should I anticpate and is it really my responsibilty.

Many Thanks

Richard_Webster

This is a very common requirement.

I expect your lease says that each maisonette lessee insures his own part of the building. This means that you can never be sure that the other maisonette owner has adequately insured his flat. This contingent indemnity insurance pays out if some insurable event occurs (e.g. fire, storm, etc) and there is a gap in the insurance of the building as a whole.

Mortgage lenders have tightened their requirements over the years and solicitors now feel they have to take this point. Possibly 7 years ago it was not considered a significant enough problem.

Your solicitors will organise this insurance. It will not generally be available to the public. Expect to pay a one off premium of the order of £150-£300.

Sobewannabe

Richard,

Thanks ever so much for such a speedy repsonse. My solicitors are telling the buyers solicitors that they cannot organise such insurance as this would result in a conflict of interests.

As such they say that they are acting in my interests, they have advised the buyers solicitors to present them with a schedule of insurance and they will take instruction from me.

Is this normal?

Thankyou

ethank

When I bought my flat, my solicitor dealt with it all, and the other side paid for it.