Building Indemnity Insurance

Laurence_G

I need some advice on indemnity!insurance. I might not need to use it at this stage but would like to understand where I stand legally in terms of cover and the procedures.

I've!purchased a maisonette which is part of a two flat conversion!of a house with!a!lease that stats that both leaseholders are responsible!for the maintenance!of the building. My solicitor obtained indemnity!insurance for this property.

There's a couple of issues regarding the!property, in so much as one entire external!wall needs re-rendering (penetrating!damp)!!and it the property needs re-roofing.!

I was unable to obtain finance for these reasons.

I've reached out to the other leaseholder who, beforehand, may or may not be!aware of the major issues to the building.! I'm awaiting a response.!

My questions relating to this!matter are:

1. if the other leasee doesn't!want to engage in any dialogue!regarding the!issue what do I do?

2. I'm very!keen to obtain finance on the property, to get some money back,! so it's vital I get the work done asap. Is it possible to get the work done and then chase payment? Would insurance!still cover this?

3. At what stage, should I involve the insurance?

As I said I'm really hoping that I don't need to use the insurance but!your ou advice on this matter would be amazing!

Thanks in advance.

davidmcn

It's not clear to me what risk your indemnity insurance actually covers. Do you have the details?

I can't see it being likely to cover the actual cost of maintenance - that's an inevitable cost which you'd be paying one way or another anyway.

G_M

What is the insurance indemnifying you against?

It appears from what you say that you purchased a flat, understandimg that maintenance was to be shared with the other leaseholder.

1) If maintenance is required, enforce the other leaseholder's lease, via the courts if necessary (I assume his lease mirrors yours?)

2) Of course you can instruct builders at any time. You will then have to pay them as per your contract with them. Yes, you can chase payment from the other leaseholder later, but there's no guarantee you'll receive it before the builder's invoice becomes due. ould you afford to cocer the full cost?

Assuming the insurance is valid for this work (which is debateable anyway) then you should make a claim and obtain the insurer's agreement before instructing any contractors.

3) that depends what the insurance is for! But if you believe it covers this repair work, and intend to claim, then you should claim before undertaking any repairs.