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Is a £600 buildings insurance charge excessive for a 2 bedroom 1930s flat in outer London.
edited 5 July 2022 at 2:36PM in Insurance & life assurance
23 replies 241 views
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Block insurance is commercial property insurance and the underwriting process and premiums are notably different to consumer insurance. Unlike consumers corporate buyers dont switch insurance to save £1 and so there hasn't been a race to the bottom in premiums and covers. A broker should be able to give you indicative quotes as long as you have a sensible rebuild cost for the whole building and know the claims history. In many cases they will not be able to give an actual quote because the insurer's fairly often want a building survey.
Remember that freeholders dont have to get the cheapest option, the only requirement is that the charges are reasonable/not excessive .
Why is nobody telling me the amount they are paying in insurance for their 2 bed flat in similar circumstances. It is only by seeing other prices that can I guage if my price is excessive.
No idea on the claims history but as a building erected in 2005 its probably lighter on the claims side.
Still waiting for someone to tell me about their insurance.
Do any of these third party elements give an undeclared kickback? Or is £20k enough for sending a cleaner once a week and collecting the monies twice a year?
I'm not up on the leasehold regulations but certainly ours send annual accounts showing a dozen or so line items for the entire block and then reiterating the lease's statement that each unit pays an equal share. There is a load of other lines like refuse collection from the council, water, accountants fees, fire safety certification, banking fees which would all potentially apply even without significant common areas.