How do I force the freeholder to get a certain Insurance?

CB1979_2

After last year's price of £500 per flat (£4k in total)

I have managed to get a quote for £550 in total through Adrian Flux with Norwich Union.

all the details are spot on, but how can i force this on the freeholder?

cos I ain't gonna be paying him £3500 profit that's for sure!!

by the way we have our own residents association if that makes a difference.

cheers

Chris

CB1979_2

wow that went off the first page quickly!

anyone?

cattie

Don't think you can force the freeholder on insurance issues, unless it states in your lease that leaseholder's are to make their own arrangent for buildings insurance. It's an accepted thing that some freeholder's do make some profit on insurance.

As you've a residents association you can try appealing to his better nature en-masse.

How many flats in your building, as £550 for block insurance sounds ridiculously cheap?

CB1979_2

cheers cattie

8 flats in total
4 owner occupier, 4 let out
£575k rebuild cost
£100 excess
£1000 subsidence excess

there must be something we can do, as i don't quite think the £3.5k profit he makes quite comes under the "reasonableness" tag somehow.

don't mind him making some profit but 700%!!!! lol

here's a quick cut & paste from the quote:

Property Type : Flats(Conv Exist Dwell) (Let Property)
Number of Bedrooms : 14
Year Property Built : 1900
Postcode of Insured Property : CR2 7AT

Building Insurance Sum Insured : £575000

Accidental Cover : No

Policy Excess : £100.00

Subsidence Excess : £1000.00

Insurance Company

Premium Quoted £559.15 (including £20.00 policy issue fee)
Norwich Union (All premiums include Insurance Premium Tax)

STANDARD Buildings Insurance includes cover for the following :-

Fire, Theft, Storm, Flood, Riot, Malicious Damage, Subsidence, Falling Trees or Aerials, Impact by Vehicles or Animals, Escape of Oil and Escape of Water.

NOTE: EVEN THOUGH IT SAYS 14 BEDROOMS, ON THEIR SYSTEM IT HAS IT DOWN AS 8 FLATS.

cattie

No accidental cover, which isn't too good. Always worth paying extra to ensure you have this. What if a part fell off a plane or something & smashed through the roof of the building?

Have you read through the policy terms & conditions to compare it to the current one taken out by the freeholder? Untill you know it's like for like I don't think you can make a fair comparison & if you do establish that the cover is equal or superior to the current one, this will be a bit of ammunition for your agument for changing insurance companies.

CB1979_2

piece off an aeroplane would surely come under impact by vehicles

i thought the accidental damage was for damage done by one of the residents, but i will check how much extra it is for accidental damage.

but terms & conditions look fine, but there's no way that he can have some super dooper T&Cs to warrant a £3.5k difference!

olly300

Taking into account Cattie's advice I would also contact https://www.lease-advice.org on the telephone between 9.30 and 3.30am tomorrow - [FONT=Verdana, arial, Helvetica]020 7374 5380

I've just put "insurance" into the search engine on the site and it seems quite a few leaseholders have taken their freeholder to a leasehold evulation tribunal over building insurance e.g. http://www.lease-advice.org/decisions/other/pdf/1461_Dir/1461_Page1.htm
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CB1979_2

cheers olly much appreciated for that.

I can't seem to get to grips with that site, is it a forum where you can ask questions or do they just put up info?

i'll give them a ring now

cheers

CB1979_2

oh well in the end after basically telling the freeholder we'd sort the insurance out ourselves and not bother getting him involved, miraculously his insurance company have matched my quotes and our renewal this year is £85 instead of £500!

his excuse is that the buildings rebuild cost is now £720k instead of £575k

cattie

Well done CB, is it drinks all round then? What a fabulous saving for you.