Buildings Insurance for Flats

Smithcom

neilogg said:

This will have to be progressed through the Management Company of owners. Advice is being sought from the Listed Building Owners Club. There are probably two possibilities:

• Carry our own risk, (collectively).

• Consult another broker who may be able to explore options such as insurance based on market value.

Thanks for the various comments. Signing off.

I'm pretty sure that you will end up insuring on a rebuilding cost basis.

It's unlikely that any insurer will charge you a lower premium, based on market value, when in reality the risk to them is the reinstatement cost  (although I accept that in the event of a total loss, all you want is your investment back).

It's also unlikely that all of the leaseholders are mortgage-free and will not be subject to buildings insurance requirements.

Your wish to pay a lower premium is understandable, but your thinking is flawed, insofar as, even if you did insure on a market value basis, anything less than a total loss, the value of the claim will be the reinstatement cost - particularly as the the building is listed, and it's likely that reinstatement would be required (as opposed to a demolition job).

Good luck

SC