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Insurance policy for shared area/drive.
edward1993
Posts: 14 Forumite
A couple of years ago I moved in to a house that is 1 of 3 other houses in a little court. It is basically just 3 houses that are accessed by a shared drive off the main road.
Before I moved there, the residents all agreed to create their own private limited company which would act like a management company to deal with handling things to do with the court, such as paying in a maintenance fee every year etc.
They thought this was the best option as a real management company would be too expensive etc. However, they never got any insurance policy.
The trouble is I am trying to move now, and my buyer's solicitors are telling me there has to be a policy in place for the shared area incase someone slips and hurts themselves. The shared area is the driveway and a tiny bit of grass between the houses. I spoke to one of the neighbours and they said they never got a policy as it was too expensive.
My home insurance has public liability, but that doesn't cover the shared spaces outside. It just covers my house plus my designated parking space, so not the grass nor the driveway.
In which case, do I just need to get public liability policy for the managed company for this court, and that will be enough for them? If so I just got a quote from Axa for only £20 a month, so not sure why the neighbour I spoke to said it was too expensive.
Is this all I would need to do, or am I missing something?
Before I moved there, the residents all agreed to create their own private limited company which would act like a management company to deal with handling things to do with the court, such as paying in a maintenance fee every year etc.
They thought this was the best option as a real management company would be too expensive etc. However, they never got any insurance policy.
The trouble is I am trying to move now, and my buyer's solicitors are telling me there has to be a policy in place for the shared area incase someone slips and hurts themselves. The shared area is the driveway and a tiny bit of grass between the houses. I spoke to one of the neighbours and they said they never got a policy as it was too expensive.
My home insurance has public liability, but that doesn't cover the shared spaces outside. It just covers my house plus my designated parking space, so not the grass nor the driveway.
In which case, do I just need to get public liability policy for the managed company for this court, and that will be enough for them? If so I just got a quote from Axa for only £20 a month, so not sure why the neighbour I spoke to said it was too expensive.
Is this all I would need to do, or am I missing something?
0
Comments
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Who is the legal owner of the shared area? Was ownership transferred to the limited company?0
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Yes that is right. All residents have a share in the limited company.DullGreyGuy said:Who is the legal owner of the shared area? Was ownership transferred to the limited company?0 -
So if the Ltd owns the freehold of the courtyard then it's just a case of the company buying the appropriate PL policy. As long as you accurately describe the activities of the freeholder (property owner not management company) then there shouldn't be an issue.0
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Are you able to just get an indemnity policy to cover this?
Ask your solicitor as it may be the cheapest simplest option if possible.0
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