Buildings Insurance in factored flat

SkintCat_2

I'm hoping that this forum can help me with a problem I have relating to my buildings insurance please?

I live in a block of flats where the Buildings Insurance is arranged by the Factors and the tennants have no input into this selection process.

Our insurance premiums are calculated on a rebuild value and mine has come in at £270,00 and is costing me £628, yet my next door neighbour has been charged £464 with a £201,000 rebuild value for an identical flat. (I believe the property to be valued at £300k max)

I contacted the insurers to try and get my rebuild value lowered and they have advised me of the following
* the rebuild value was calculated based on the purchase price (in my case this was in 2007) with the premium being index linked. (my neighbour bought back in ~2000)
* they will only reduce the rebuild value if I can provide a surveyors valuation on the property. (I believe this will cost about £250)
* the premiums are high as there have been so many claims against the policy.

I've had a look at the Association of British Insurers website and tried to use their tool for a rebuild cost, however there are many paramaters within this tool that don't fit the profile of my flat (eg: I'm on 5th floor, tool only goes to 4th. My floor space is also greater than the accepted value). I called them to see if they could do the calc for me but unfortunately this is not a service they provide and advised me to get a surveyor in.

So it appears that without paying ~£250 for a surveyor to come in, I'm stuck with a very high annual premium on this property :mad:.

Can anyone advise where I stand on this or if there's any suggestions on where I can go next?

Many thanks
SkintCat

rs65

SkintCat wrote: »

* the rebuild value was calculated based on the purchase price (in my case this was in 2007) with the premium being index linked. (my neighbour bought back in ~2000)
* they will only reduce the rebuild value if I can provide a surveyors valuation on the property. (I believe this will cost about £250)
* the premiums are high as there have been so many claims against the policy.

* purchase price has no bearing on rebuild cost. It is likely that the surveyor put a market value and rebuild cost on it when you bought it though
* a block of flats should be insured as a whole, and then the cost split between owners - presumably you pay an agreed percentage of other things. Might be worthwhile getting the factors to arrange a survey of the building and all owners paying.
* quite possible


If your neighbour's sum insured is correct then you are overpaying. If yours is correct then your neighbour will be £69k short if the block is destroyed by fire and you may have difficulty getting it rebuilt. Its in all owners interest for the building to be adequately insured. The current method seems flawed.

SkintCat_2

Thanks RS65 - you're right, purchase price not relevant and my mortgage provider won't tell me what rebuild value their surveyor put on the property!

Regarding Factors doing survey, I'd already suggested to them that this should be done (as we've recently changed insurers), but they said it was the up to the insurers whether they did this or not.

So, still stuck with the fact I've to potentially fork out £250 for a survey to get my buildings insurance premium reduced...

anyone got any other ideas?