Leasehold Buildings Insurance

nicholbb

Hi,
My first flat with leasehold so have questions, compounded by inexperience of insurance.
Lease states freeholder responsible for buildings insurance, due in couple of weeks - cool. Four or five flats sold, 16 or so are rented (but not by freeholder anymore).

Invoice arrived with cost increase of 10% from last year, I queried and requested the policy summary. This came next working day with explanation given, increase due to:
IPT (on policy it shows @10%, so a 0.5% increase?); and
Declared value of buildings which are index linked (It's London, zone 3).

1) Does 10% increase seem about right?

Next the items in the insurance have me baffled. Are the following normal, do they mean what I think they do?

Policy section Rent:
Loss of Rent, additional expenditure, outstanding debit balance.
Extensions do include "loss of attraction" so GF wants to claim. "Murder, suicide and disease" also there for me to claim if she says that again.

2) Surely this isn't part of buildings insurance but landlord insurance? Freeholder wouldn't include this if not renting any more? Is this renting if building is damaged and I have to move out?

Policy section Employers Liability:
Indemnity limit to £10 Million (but they are not covered by "war and allied risks")

3) What would this be for as don't think any flats came with butlers, cooks or gardeners? It's under optional cover.

Had a week of communication with management agents and they've been very prompt to reply and helpful for some dumb questions (yep these are the smart ones). So I don't wish to be kicking up a fuss over small matters (like overcharging me 0.4545454545 pence - yes I worked it out and yes I have issues).

Thanks

Quentin

These all look standard items you find on a landlord's buildings policy


(Google landlord's insurance and you will find the wordings of policies to see for yourself)

nicholbb

Thank you.


Employers liability was thrown in for free as part of policy.
Rent was for me if issues with property.


Now been sorted, I've paid and thanked them.

dacouch

Rent is automatically included as many flat owners rent their properties out and it covers their rental income if say their tenants had to move out while the flat was being repaired after a claim eg a fire claim.

The E/L is also automatically included, it's there if say the block of flats employ a cleaner / caretaker / concierage etc etc.

Inflation in building costs is 5%+ and can be even higher in certain parts of London. For instance I had a customers home in Eton Square revalued for building costs. The rebuild cost went through the roof as the increased cost of the congestion charge, increased parking charges and increased cost of suspending bays in the area would have a big impact on a builders carrying out long term work so needed to be included.