Freeholder arranges insurance but cost is astronomical. What rights do I have to get a fair price?

Bobcat88

Our freeholder arranges the building insurance for our leasehold flat (a maisonette, with one other leaseholder) however the price of this insurance is astronomical.

We did not hear from them so we set up our own insurance which was half the price and includes contents insurance and has a much better level of cover. 

When discussing with them, they say we have no right to consultation on the policy, which insures all of the properties the company manage not just the two in our freehold and we have to pay whatever they arrange with no say on policy cover, insurance company or price. They did not even send us over the full policy document or a bill until we were 6 months into our policy and are now hounding payment. 

I have checked our lease documents and it does not say we have no right to consultation or that the freeholder arranges the building insurance. However, in the questions asked by the solicitor when we bought the property they did tick the box that they arrange it.

How can I insure we get a fair deal?

davidmcn

Does the lease say anything about insurance? Seems odd if it doesn't say whose responsibility it is.
The house buying/selling forum might be a better place for questions about leasehold rights.

Bobcat88

Thanks Davidmcn. No, it doesn’t cover insurance at all. It’s quite a brief and old lease document. I’ll post it again under house buying/selling. 

Sandtree

What type of policy have you bought? You cannot buy regular home insurance as that is to cover a single dwelling but you have two dwellings in the building. 

If the contract is mute on insurance itself who does it say is responsible for maintaining the structure of the building? Its that obligation that creates the insurable interest.

Bobcat88

It doesn't cover it specifically in the lease. It only sets out certain covenants that we cannot do in the property and the below schedule of personal covenants.
"The transferee herby covenants with the transferor by way of indemnity only to perform and observe the covenants (if any) affecting the said titles and as far as the same affect the said properties and are still subsisting and capable of taking effect and to observe and perform the covenants on the part of the lessors contained in the leases granted our fo the said titles and referred to in the charges register thereof and to indemnify the transferor so far as aforesaid against all claims actions proceedings costs damages expenses and demands in respect of any breach or non-performance of the said covenants or any of them."

Within our legal report when buying the house it says "You are also to contribute one half of the costs and expenses (otherwise known as the service charges and buildings insurance)." No other details are outlined.