High Cost Of Leasehold Building Insurance

HUMBUG

I own a 1 bedroom maisonette (ie. a converted house made into 2  flats ) in Greater London , while my upstairs neighbour in her 2 bedroom maisonnette. She owns the freehold on the whole property (ie. she is my landlord)  while my lease is for 999 yrs .

She's just renewed the building insurance with brokers 1st Sure Ltd  that have sold her a policy from AXA for a whopping £790 a year of which I will pay my half share £395.

The rebuilding cost is £1.25m  but last year it was £1m and my building insurance cost has basically increased by 25%. 

Just wondering whether any of you think this is an excessive leasehold building insurance premium for a converted terraced house?  

Further , I am sure that if I just took out building insurance separately for my 1 bedroom maisonette,  the cost would probably be between £150-200. 

Why does leasehold building insurance cost so much? 

DullGreyGuy

For a start it's commercial insurance rather than personal lines and there is a lot less pressure on prices where companies actually value good cover rather than just cheap prices. Brokers often have to do more work, for larger blocks surveys etc can be required to get a quote, so get much more than the 10% or so commission that your home insurance broker has to live on; there is no online quote and buy system, it involves people, forms, telephone calls/emails etc.

Flats, particularly large blocks, suffer much more with Escape of Water and Fire etc... if you had an EoW in a detached house your insurer picks up the cost of replacing 1 kitchen, maybe some replastering in the adjoining room. With bad luck and a not often in leaseholder (Eg vacant between tenants) in a block of flats it could take out their kitchen, next doors and the two kitchens on the floor below.