Home insurance

Nikkimikki

Hi all, I’m hoping someone can help me with a query regarding home insurance that has me baffled! 

I own a leasehold flat with a share of the freehold.  We have a block insurance policy which covers the structure of the building but not the internal fixtures in each of the flats (kitchen, bathrooms etc).
I have a contents insurance policy but am stumped as to how to cover the fixtures and fittings.  Having spoken to my insurance company and they have said that I need to take out a building’s insurance policy but that would mean double insuring.  

What have others done in this situation?  Any tips/recommendations please?

thanks
Nikki

CSI_Yorkshire

Two options, if it isn't on the block insurance, that I can think of.

Ask your contents insurer to cover it on that policy - won't be able to do that online or on a comparison site but they might if you call them.

Leaseholder's improvements insurance.

eddddy

Nikkimikki said:

Hi all, I’m hoping someone can help me with a query regarding home insurance that has me baffled! 

I own a leasehold flat with a share of the freehold.  We have a block insurance policy which covers the structure of the building but not the internal fixtures in each of the flats (kitchen, bathrooms etc).
I have a contents insurance policy but am stumped as to how to cover the fixtures and fittings.  Having spoken to my insurance company and they have said that I need to take out a building’s insurance policy but that would mean double insuring.  

What have others done in this situation?  Any tips/recommendations please?

thanks
Nikki

Taking a step back...

Most flat leases make the leaseholder responsible for things like:

• Plaster on the walls of their flat
• Maybe internal walls in the flat
• Doors
• Maybe windows
• Flooring
• Maybe floor joists under the flat
• Fitted kitchens
• Fitted Bathrooms

Most flat leases make the freeholder responsible for things like:

• The communal areas
• The main walls of the building
• The roof
• The foundations

Most leases require the freeholder to take out buildings insurance to cover everything in both lists above.

So everything listed above (including your fitted kitchen and bathroom) is probably already covered by your freeholders' block insurance policy. Hopefully the freeholders included everything from both lists when calculating the rebuilding/reinstatement cost for insurance purposes.

So, for example, if a water leak damages your plaster, your flooring, and/or your kitchen units - you would make a claim through the freeholder's block insurance.

(But leases vary - so read your own lease to make sure.)




This sometimes causes a problem with improvements. For example, the freeholder originally installed a basic kitchen which might cost £2k to reinstate, and insures accordingly. But you've replaced it with a luxury kitchen which would cost £10k to reinstate.

So you might want to add cover for 'Tenants Improvements' to your contents policy.

But as you are joint freeholders, you could simply agree to increase the Block Buildings Insurance Policy to cover the value of everyone's luxury kitchens, luxury bathrooms, luxury flooring, etc.

Nikkimikki

eddddy said:

Nikkimikki said:

Hi all, I’m hoping someone can help me with a query regarding home insurance that has me baffled! 

I own a leasehold flat with a share of the freehold.  We have a block insurance policy which covers the structure of the building but not the internal fixtures in each of the flats (kitchen, bathrooms etc).
I have a contents insurance policy but am stumped as to how to cover the fixtures and fittings.  Having spoken to my insurance company and they have said that I need to take out a building’s insurance policy but that would mean double insuring.  

What have others done in this situation?  Any tips/recommendations please?

thanks
Nikki

Taking a step back...

Most flat leases make the leaseholder responsible for things like:

• Plaster on the walls of their flat
• Maybe internal walls in the flat
• Doors
• Maybe windows
• Flooring
• Maybe floor joists under the flat
• Fitted kitchens
• Fitted Bathrooms

Most flat leases make the freeholder responsible for things like:

• The communal areas
• The main walls of the building
• The roof
• The foundations

Most leases require the freeholder to take out buildings insurance to cover everything in both lists above.

So everything listed above (including your fitted kitchen and bathroom) is probably already covered by your freeholders' block insurance policy. Hopefully the freeholders included everything from both lists when calculating the rebuilding/reinstatement cost for insurance purposes.

So, for example, if a water leak damages your plaster, your flooring, and/or your kitchen units - you would make a claim through the freeholder's block insurance.

(But leases vary - so read your own lease to make sure.)




This sometimes causes a problem with improvements. For example, the freeholder originally installed a basic kitchen which might cost £2k to reinstate, and insures accordingly. But you've replaced it with a luxury kitchen which would cost £10k to reinstate.

So you might want to add cover for 'Tenants Improvements' to your contents policy.

But as you are joint freeholders, you could simply agree to increase the Block Buildings Insurance Policy to cover the value of everyone's luxury kitchens, luxury bathrooms, luxury flooring, etc.

Many thanks for your response, really helpful.  I have read my lease and it only seems the fixtures and fittings inside my flat would not be covered. 

I have spoken to my contents insurers who told me I would need to take out building insurance to cover internal fixtures and fittings which would mean double insuring the building.  

I have to say, this has got me baffled!!

eddddy

Nikkimikki said:

Many thanks for your response, really helpful.  I have read my lease and it only seems the fixtures and fittings inside my flat would not be covered. 

I have spoken to my contents insurers who told me I would need to take out building insurance to cover internal fixtures and fittings which would mean double insuring the building.  

I have to say, this has got me baffled!!

Do you mean "internal fixtures and fittings owned by you" are not covered, or "internal fixtures and fittings owned by the freeholder" are not covered?

If it's the former, I believe you can get around that by assigning ownership of each new fitted kitchen, each new fitted bathroom, etc to the freeholder.

i.e. You agree to leave the new fitted kitchen and new fitted bathroom behind for the freeholder when the lease ends.




If that doesn't solve the problem, talk to your joint freeholders about it - presumably they have the same problem.

And you can jointly agree to take out block buildings insurance that covers everyone's fixtures and fittings.

You seem to have a slightly strange lease (which is causing insurance problems) - so maybe discuss with your joint freeholders the possibility of varying the leases, to make them more standard.  That might reduce problems when you eventually sell the flat.