Freeholder refusing to renewal Buildings Insurance

Nimroddx

Hello All,

Just a general question, not sure if anyone knows the answer. Our freeholder has had a bit of a mental break, either that or he is plain dumb. But he has sent a letter round to us all saying the Building Insurance due for renewal at the end of January will not be renewed as ONE of the 12 leaseholders hasn't paid up the recent service charge issued last month.

I've checked the lease, and it very specifically says the freeholder:

Section 4.3. To insure and keep insured the Building and any building erected in connection with them during the term hereby granted against loss or damage by fire, lightening, explosion, earthquake, flood, riot, civil commotion, malicious persons, subsidence and/or heave or landslip and aircraft and such other usual risks in respect of the building with a reputable insurer is willing to insure against.

Now I know I likely need to go to court / get solicitors involved to compel him to.

In the mean time, what happens when the Buildings Insurance runs out? The Freeholder has a personal worth over £1.4 million. So I'm hoping that he is legally liable for the building if it falls down? Ie : The Insurance is to cover him from being out of pocket, so if he's going to be an idiot and refuse to insure it, it's himself at risk.

I'd like to get my own insurance, but no insurance company will ensure a single flat as part of the overall building so I'm stuck.

Thoughts people?

Much appreicated.

G_M

Your starting point is obviously a polite, but firm, letter back (do it formally in writing!), quoting the clause in the lease (enclose a copy of the lease too perhaps) and making clear you expect him to insure the building, to protect the interests of both the leaseholders (all of them) and himself.

You could also gently point out that if he breached that clause in the lease by not insuring, and the building burned down, he would be personally liable.....

I would also

* speak to other leaseholders and get them to also write.
* try to identify which leaseholder has not paid, and gently 'persuade' him to pay. It's not your job, obviously, but would resolve the problem........

If all that fails, then solicitors letter is next step.

ethank

We had an absent landlord at my old flat - and there was no block policy, and we all bought our own insurance. Just through the normal online comparison sites - no questions asked at all!

MrJB

ethank wrote: »

We had an absent landlord at my old flat - and there was no block policy, and we all bought our own insurance. Just through the normal online comparison sites - no questions asked at all!

But who would be responsible for rebuilding the property? I cannot envisage the insurers actually paying out in that instance!

Freecall

Do you (or any of the other leaseholders) have a mortgage?

I would drop the lender(s) a line, they are usually pretty hot on protecting their interests and at no hassle or cost to you.

G_M

MrJB wrote: »

But who would be responsible for rebuilding the property? I cannot envisage the insurers actually paying out in that instance!

They would each pay out..... eventually. But they would first argue between themselves about who was liable for how much of the total rebuild cost. It gets messy.

Better for the leaseholders to group together and buy a single policy and share the cost, just as if the freeholder had.

So as advised above, as well as chasing the freeholder, talk to the other leaseholders.

Ruthy1604

ethank wrote: »

We had an absent landlord at my old flat - and there was no block policy, and we all bought our own insurance. Just through the normal online comparison sites - no questions asked at all!

G_M wrote: »

They would each pay out..... eventually. But they would first argue between themselves about who was liable for how much of the total rebuild cost. It gets messy.

Better for the leaseholders to group together and buy a single policy and share the cost, just as if the freeholder had.

So as advised above, as well as chasing the freeholder, talk to the other leaseholders.

We too have an absent landlord. I insure the whole building & all the leaseholders pay their share. Technically I'm not sure this would hold up in court as I don't think I'm supposed to insure something that I don't have a financial interest in, but the insurers have paid out on various claims over the years with no problem. Not an ideal situation though.


Hopefully you can persuade the Landlord to fulfil his obligations.

HouseBuyer77

Technically I'm not sure this would hold up in court as I don't think I'm supposed to insure something that I don't have a financial interest in

I think this is fine if all of the leaseholders get named on the policy (you don't have an insurable interest in the whole building, however together as a group you do).