Leasehold Flat Buildings Insurance muddle!

gatita

I live in a an old Victorian building, there are just 2 flats. I own the top floor flat.  I am on a lease for 1000 years...  The freeholder lives beneath. I have taken out home contents insurance with no problem, but I cannot have buildings insurance!  I have trawled through the Lease, but most of it is gobbledegook to me! and I cannot find anywhere it says I must pay the Freeholder.  
Anny help would be most welcome.

user1977

What did your solicitor tell you about insurance when you bought? From your previous threads it looks like you bought it recently. Are you saying the freeholder hasn't insured?

eddddy

As above, your solicitor should have told you when you bought.

But the lease will say who is responsible for buildings insurance.

• Your lease probably has a section titled something like "Covenants by the Tenant" or "Covenants by the Lessee" or "Covenants by the flat owner" - that's a list of things you must do.

• And then there'll be another section titled something like "Covenants by the Landlord " or "Covenants by the Lessor"  - that's a list of the things the freeholder must do.

You need to see if arranging buildings insurance is in one of those sections. If it's under the list of the things the freeholder must do, you will have to pay the freeholder a portion of the insurance cost (probably 50% of the cost).

If it's under the list of things you must do, you'll need to arrange buildings insurance for just your flat (and pay for it).



If the building is a converted house - it's more likely to be the freeholder who arranges buildings insurance.

If the building is 2 purpose maisonettes (separate entrances, no communal areas) - it may be you who has to arrange building insurance.


What does your freeholder say about buildings insurance?

canaldumidi

The lease may be gobbledegook, but unless you quote it, or relevant parts, it will be hard for us to interpret for you....

Maybe the simplest action would be to pop downstairs (with a nice home-baked cake?), introduce yourself, and discuss insurance with the freeholder? Between the two of you, you should be able to put a policy in place if there is not already one.

bbat

Do you have a mortgage? If so, didnt your solicitor check there was buildings insurance in place so the purchase could go through? 

NameUnavailable

The freeholder should arrange buildings insurance as they own the building, so it's their insurable interest. You would contribute towards the cost (usually as part of the service charge).

eddddy

NameUnavailable said:

The freeholder should arrange buildings insurance as they own the building, so it's their insurable interest. You would contribute towards the cost (usually as part of the service charge).

Usually - but not always. It depends what the lease says.

gatita

Thank you all so much, I think I understand things a little better now!   I have no problem with the landlord, he says he thinks the insurance quote he has got is very high that he has found (HSBC)  and has mentioned to us that maybe we could get some more quotes. He is elderly and doesn't use the internet. Any suggestions of where to look please. Thank you so much

eddddy

gatita said:

Thank you all so much, I think I understand things a little better now!   I have no problem with the landlord, he says he thinks the insurance quote he has got is very high that he has found (HSBC)  and has mentioned to us that maybe we could get some more quotes. He is elderly and doesn't use the internet. Any suggestions of where to look please. Thank you so much

For buildings insurance for blocks of flats, you almost certainly have to go to a broker.

If you google something like 'block of flats insurance' you'll find lots of brokers.


Don't be tempted to try the online comparison sites. Their quotes will seem much cheaper, but they're not suitable for blocks of flats. So any policy you buy won't pay any claim you make - so it would be a waste of money.


I'd be surprised if HSBC offer buildings insurance for blocks of flats - so your freeholder might have got a quote for a standard house. As I say, block of flats insurance is likely to be more expensive - so you might have to have a difficult conversation with your freeholder, and explain why the correct insurance is even more expensive.

gatita

Thank you again e dddy   The building is an old Victorian house split into 2 flats. We own the top flat, and the Landlord the one underneath, so no block of flats.   I will do a search and see if I can find a Broker.

bbat

gatita said:

Thank you again e dddy   The building is an old Victorian house split into 2 flats. We own the top flat, and the Landlord the one underneath, so no block of flats.   I will do a search and see if I can find a Broker.

That is a block of flats in terms of insurance language. You need insurance for a block of flats.