Individual Flat buildings insurance vs communal block cover

Farbr

I own a leasehold flat in a block of 9 which is effectively self-managed by a flat owners group.
There are communal areas (e.g. lift and stairs) and gardens and driveways.
To date, under the terms of the lease, the buildings insurance has been collectively - as a commercial group - with the premium split evenly across all 9 units,
Over the last 3 years, there have been 2-3 large (water damage) claims affecting other units but not mine. These have caused the group premium to jump significantly.

With the management company's OK, I can insure my flat (as a non-commercial property) for 60% less even declaring my neighbours' claims.
My neighbours are also willing to insure separately

BUT the problem is insuring the communal areas - finding an insurer willing to take on this communal risk (damage, public liability, etc).

Does anyone have a similar problem or - better still - a solution?

Sandtree

the better solution is to return to the block insurance policy.

If you go to individual policies what happens if the flat below you has a fire that guts their property and damages yours and it turns out their policy had lapsed? Your insurers wont payout on repairing the damage to your unit whilst the property is still structurally unsound due to the damage below. Who should pay for a subsidence claim that is causing damage to the lower and middle layers but not the upper floor? 

In Scotland it is done but it causes a host of problems and even there where there is no leasehold properties its increasingly common for a factoring company to be used and a block policy bought to avoid all these issues.

Smithcom

Farbr said:

I own a leasehold flat in a block of 9 which is effectively self-managed by a flat owners group.
There are communal areas (e.g. lift and stairs) and gardens and driveways.
To date, under the terms of the lease, the buildings insurance has been collectively - as a commercial group - with the premium split evenly across all 9 units,
Over the last 3 years, there have been 2-3 large (water damage) claims affecting other units but not mine. These have caused the group premium to jump significantly.

With the management company's OK, I can insure my flat (as a non-commercial property) for 60% less even declaring my neighbours' claims.
My neighbours are also willing to insure separately

BUT the problem is insuring the communal areas - finding an insurer willing to take on this communal risk (damage, public liability, etc).

Does anyone have a similar problem or - better still - a solution?

Your proposal is quite an efficient way to cause massive problems in the event of a (serious) claim.

I completely concur with Sandtree

SC

Smithcom

Also, if the Management Company have agreed this crazy non-option, I would strongly suggest that they have appropriate Directors & Officers Liability cover in place.

SC

Farbr

Thanks for all your wise comments and advise which I've passed on to the management company