Building insurance from exchange?

Jellybean_2105

We have just bought our council property (leasehold) under the right to buy scheme.

We exchanged early Feb and completed on Monday 24th.

Our problem is that a pipe burst on Saturday 22nd, and flooded the property. We had contents insurance in place but they apparently don't cover the laminate flooring, doors or to provide any help in drying the property out.

We have spoken to our building insurance which is arranged by the council and they are saying we were not covered until completion date.

The council say it's not their problem now as we own it, even though we didn't when the pipe burst.

Does anyone have any advice on where we go from here, should the insurance have been in place from exchange?

Thanks in advance.

QTPie

Yes, when you buy somewhere, you should have buildings insurance in place from exchange of contract.

Jellybean_2105

So is this down to us or the council seeing as they arrange the building insurance, we had to pay on exchange for the service charge and insurance before we could complete.

kingstreet

Your solicitor should have ensured you had buildings insurance in force from exchange of contracts, the point you become legally obliged to purchase the property on the agreed completion date.

Establish which version of the Standard Conditions of Sale were used by the vendor's solicitor, version four or version five, as this determines who holds the risk between exchange and completion.

betmunch

Hang on a mo, if its a leasehold is the property a flat or a house?

If its a flat then the management company would be liable for supplying the buildings insurance wouldnt it? And that would likely be the council even though the OP has bought from them.

If its a house then OP should have their own buildings insurance, and as has been stated earlier it should have been in place from exchange.

Can you clarify?

Jellybean_2105

Yes it is a flat, we just can't get anyone who knows what's going on or who is responsible.

We can't even live there at the moment and I'm due a baby in 6 weeks it's all such a nightmare.

pinkteapot

Is it leasehold?

If so, who is the management company or leaseholder? They should have buildings insurance.

leccyblue

If it is a leasehold flat, and the management company provide the insurance - then surely it is irrelevant who technically a) owns the property of b) is committed to own it, post exchange. Because whether the council own it, or you own it - it's still the management company (most likely the council) who have to provide the buildings insurance? If you paid a fee to the management company on exchange, then this will have been, I suspect, a pro-rata payment of the annual management fee, for the remainder of the year. Surely this should have included the insurance?

kingstreet

Oops!

Sorry, missed the leasehold bit.

Insurance should continue with present insurer, regardless of change of ownership, unless you were told the contrary, which you might if it's a leasehold house, but not if it's a flat.

Definitely back to the existing insurer, as this is a buildings insurance claim.

xylophone

The council say it's not their problem

But it is the insurer's problem?

pcgtron

kingstreet wrote: »

Oops!

Sorry, missed the leasehold bit.

Insurance should continue with present insurer, regardless of change of ownership, unless you were told the contrary, which you might if it's a leasehold house, but not if it's a flat.

Definitely back to the existing insurer, as this is a buildings insurance claim.

I own a leasehold flat in a converted Victorian house. There is one flat above.
I also own the freehold of the building, but the lease specifies that the owner of the flat above has to have their own buildings insurance, and that I am responsible for the footings, and they are responsible for the roof.