Home insurance questions

canaldumidi

user1977 said:

FataVerde said:

Slithery said:

For £37k?
I don't believe you...

Sorry, 375k. Miswrote that. Yeah, I wish This being said, it's weird that the other flat in the house sold for 170K in 2013 and the one I'm buying sold for 200k more just 2 years later in 2015. It's larger and has a loft demised to it and half the garden so more value, but 200K difference? Insane.

So you're buying a flat, not the whole house?....

As user1977 says, this almost certainly changes things. So please clarify

* what country is the property in?

* are you buying just a lease?

* or are you also buying the full freehold for the buiding?

* or a share of the freehold (as well as the lease)?

* what does the lease say about insurance? Please quote exact words.

(if scotland I've no idea how things work with flats.....!)

MovingForwards

Yes, like the Aviva one. There may be other companies who do it.

Take note of what User1977 is saying about freehold and leasehold. You don't want to buy insurance unnecessarily.

FataVerde

user1977 said:

FataVerde said:

Slithery said:

For £37k?
I don't believe you...

Sorry, 375k. Miswrote that. Yeah, I wish This being said, it's weird that the other flat in the house sold for 170K in 2013 and the one I'm buying sold for 200k more just 2 years later in 2015. It's larger and has a loft demised to it and half the garden so more value, but 200K difference? Insane.

So you're buying a flat, not the whole house? Are you sure it's up to you to arrange buildings insurance? Generally (in England & Wales) the freeholder organises the buildings insurance for the whole building and splits the costs among the leaseholders. If you're also going to be the freeholder, it probably isn't a standard buildings policy you want.

Yes, it's share of freehold in London and I own half the freehold. The ground floor owns the other half (just 2 flats in this mid terrace). The current owners had separate buildings insurance for their flats. I know it's not ideal, but I'll start with this the first year and suggest to my neighbour that we could get a common buildings insurance. Because there is no whole buildings insurance, my lender asked to have an indemnity policy in place.

youth_leader

Before you choose an insurance provider have a look at the Which list of 'approved' providers.  I went for the cheapest policy possible on the comparison sites because I hadn't had to claim for twenty years - then Storm Arwen blew my roof off.  Cheap policies are cheap for a reason, it is worth paying more.

canaldumidi

FataVerde said:

user1977 said:

FataVerde said:

Slithery said:

For £37k?
I don't believe you...

Sorry, 375k. Miswrote that. Yeah, I wish This being said, it's weird that the other flat in the house sold for 170K in 2013 and the one I'm buying sold for 200k more just 2 years later in 2015. It's larger and has a loft demised to it and half the garden so more value, but 200K difference? Insane.

So you're buying a flat, not the whole house? Are you sure it's up to you to arrange buildings insurance? Generally (in England & Wales) the freeholder organises the buildings insurance for the whole building and splits the costs among the leaseholders. If you're also going to be the freeholder, it probably isn't a standard buildings policy you want.

Yes, it's share of freehold in London and I own half the freehold. The ground floor owns the other half (just 2 flats in this mid terrace). The current owners had separate buildings insurance for their flats. I know it's not ideal, but I'll start with this the first year and suggest to my neighbour that we could get a common buildings insurance. Because there is no whole buildings insurance, my lender asked to have an indemnity policy in place.

Comparison sites are not set up to deal with buildings policies for individual flats within a building.

You need to consult a specialist broker.

(and you need to read/quote the lease, as requested above).

FataVerde

canaldumidi said:

FataVerde said:

user1977 said:

FataVerde said:

Slithery said:

For £37k?
I don't believe you...

Sorry, 375k. Miswrote that. Yeah, I wish This being said, it's weird that the other flat in the house sold for 170K in 2013 and the one I'm buying sold for 200k more just 2 years later in 2015. It's larger and has a loft demised to it and half the garden so more value, but 200K difference? Insane.

So you're buying a flat, not the whole house? Are you sure it's up to you to arrange buildings insurance? Generally (in England & Wales) the freeholder organises the buildings insurance for the whole building and splits the costs among the leaseholders. If you're also going to be the freeholder, it probably isn't a standard buildings policy you want.

Yes, it's share of freehold in London and I own half the freehold. The ground floor owns the other half (just 2 flats in this mid terrace). The current owners had separate buildings insurance for their flats. I know it's not ideal, but I'll start with this the first year and suggest to my neighbour that we could get a common buildings insurance. Because there is no whole buildings insurance, my lender asked to have an indemnity policy in place.

Comparison sites are not set up to deal with buildings policies for individual flats within a building.

You need to consult a specialist broker.

(and you need to read/quote the lease, as requested above).

Will do although it's 2 diff documents specifying insurance requirements: original lease and renewal lease when the share of freehold was bought. The site I used asked if I want insurance for a flat or house, then asked if I am top floor so it looks like they can. Will check with a broker although I'm running out of time.

FataVerde

youth_leader said:

Before you choose an insurance provider have a look at the Which list of 'approved' providers.  I went for the cheapest policy possible on the comparison sites because I hadn't had to claim for twenty years - then Storm Arwen blew my roof off.  Cheap policies are cheap for a reason, it is worth paying more.

What are 'approved' providers? Are others unapproved?

youth_leader

Which reviewed customers who had made claims on their insurance and published a list of insurance companies who scored well in all areas.  Not sure where the 'approved' came from.

FataVerde

@canaldumidi and @user1977 Here are the Lease clauses, a mouthful, but note the original lease was amended when the share of freehold was bought:

Renewal lease (when freehold was bought)

Clause 1 shall be deleted and replaced with the following clause

To pay to the Lessor such sums as have been expended by the lessor in effecting buildings insurance in accordance with the Lessor’s obligations including the Lessee’s proportion of any excess payable under the insurance policy of the building following the occurance of an insured risk and many amount equally to any insurance money that the insures [misspelling?] of the building refuse to pay by reason of any act or omission of the Lessees of any undertenant their workers, contractors or agents or any person at the building with the express or implied authority of any of them.

 

The following clause shall be added to the lease as clause 3.

 The Lessor shall during the term effect and maintain insurance of the building against loss or damage caused by fire explosion lightening earthquake storm floor bursting and overflowing of water tanks apparatus or pipes escape of water or oil impact by aircraft and articles dropped from them impact by vehicles not civil commotion malicious damage theft or attempted theft falling trees and branches and aerials subsidence and heave landslip collision accidental damage to underground services public liability to anyone else and any other risks usually covered under a flat owners comprehensive policy which the lessor decides to insure against from time to time with reputable insurers on fair and reasonable terms that represent value for money for an amount not less than the full reinstatement lost subject to any exclusion limitations conditions or excesses that may be imposed by the lessor’s insurer.

 

FataVerde

youth_leader said:

Which reviewed customers who had made claims on their insurance and published a list of insurance companies who scored well in all areas.  Not sure where the 'approved' came from.

Thanks! I wasn't able to find it. If you have a link, I'd be grateful.