"Tenants improvements & betterment" insurance ?

pinkpiglit

Hello there,

We own a leasehold flat and buildings insurance is taken out for the whole block. We have our own contents insurance.

If our flat were to suffer damage, the buildings insurance will cover the minimum to get it back to a liveable condition. However we have just completed £50k of refurbishment works which are not covered.

From research I know I need cover for tenants improvements, but I can't find any providers. I checked with our existing contents provider and they do not cater for this either.

Has anyone come across this? I guess the alternative is to take out full buildings and contents insurance, but I've read about instances where the policy becomes void due to there being "double cover" in place, ie our personal policy and the block policy.

Can anyone help....please?

I've tried to speak to our property manager but he is off sick and I've been told to wait until he is back which is unacceptable...what happens if the upstairs flat springs a leak and our ceiling caves in and water ruins the newly laid floor. I realise the chances are slim, but I don't want us to be underinsured!

Unfortunately the insurance broker that deals with our building (I'm on the Board so have his details) is also on holiday!

paddyandstumpy

Most policies will cover tenants improvements (also known as tenants liability, home improvements or tenants cover), however you may struggle to find one that has £50k cover. Most that I've seen will offer £5k to £10k cover.
My suggestion would be to talk to a Broker (not Swinton!) and explain what you are looking for, any Broker will have a panel of products to look through and offer you.

pinkpiglit

paddyandstumpy wrote: »

Most policies will cover tenants improvements (also known as tenants liability, home improvements or tenants cover), however you may struggle to find one that has £50k cover. Most that I've seen will offer £5k to £10k cover.
My suggestion would be to talk to a Broker (not Swinton!) and explain what you are looking for, any Broker will have a panel of products to look through and offer you.

Thanks. When I spoke to our provider (Tescobank, although actually underwritten by Axa), the woman seemed totally puzzled by my request and said she had never heard of it! Given I couldn't find any reference to such a policy on the internet I thought it must not be all that common.

paddyandstumpy

Out of interest could you let me know if you find a policy please, it's a good bit of knowledge to have.

Sorry I couldn't help you more in the first instance.

pinkpiglit

No problem - will come back and update if I manage to find out.

rs65

pinkpiglit wrote: »

If our flat were to suffer damage, the buildings insurance will cover the minimum to get it back to a liveable condition.

Have you actually seen the wording that states this? I have never seen such a wording. Buildings insurance should be on a reinstatement basis - rebuild the structure in the same way is was before the loss. Also check the definition of buildings - does it include things like your flooring, fitted kitchens, decoration etc?

The simplest solution for you seems to be to increase the buildings sum insured by £50k.

rs65

paddyandstumpy wrote: »

Most policies will cover tenants improvements (also known as tenants liability, home improvements or tenants cover),

Are you sure? Tenants improvements is a property damage cover - insuring improvements that the tenant has made to their rented property. Tenants liability is covering the tenants legal liability for damage to landlords fixtures and fittings.

pinkpiglit

rs65 wrote: »

Have you actually seen the wording that states this? I have never seen such a wording. Buildings insurance should be on a reinstatement basis - rebuild the structure in the same way is was before the loss. Also check the definition of buildings - does it include things like your flooring, fitted kitchens, decoration etc?

The simplest solution for you seems to be to increase the buildings sum insured by £50k.

I'm waiting for the broker to call me back to discuss the policy. As it's a block policy we can't just increase it by 50k. The 42 flats in my building pay their pro rata share based on square footage...

paddyandstumpy

rs65 wrote: »

Are you sure? Tenants improvements is a property damage cover - insuring improvements that the tenant has made to their rented property. Tenants liability is covering the tenants legal liability for damage to landlords fixtures and fittings.

Yes I'm sure thankyou - I've seen the specific wording "internal decorations where you are the tenant of your home or where you are the owner, but not responsible for insuring the buildings" under the definition of a Contents item.

pinkpiglit

I thought the same. But as I've only heard reference to it I could not claim to have seen it.

rs65

paddyandstumpy wrote: »

Yes I'm sure thankyou - I've seen the specific wording "internal decorations where you are the tenant of your home or where you are the owner, but not responsible for insuring the buildings" under the definition of a Contents item.

...... Which is fine, but it's not tenants liability.