Compton Group forcing insurance within Zurich

KatieJayne27

Hello everyone. Like many other people, I have recieved a letter from compton group who own the leasehold on our property, asking that we change our building insurance over to Zurich, their recommended insurance company. I was also unaware when buying the property 12 months ago that we had a clause in our lease that stated we must insure with an approved company from our leaseholder. We are first time buyers and unfortunately have made the cardinal sin of not already being insured ( I could swear i took out a buildings not contents policy and paid for it upfront as the price was low but can i find anything relating to this? No). Very strange as our mortgage was approved ect and the only documents I can find relating to building insurance was something we had to sign from the solicitors to say that building insurance was our responsibility and they can't advise ect ect. I think because I have 2 policies with legal and general that are life and income protection I've assumed that we had it. Silly I know, but both of these come out direct debit and I haven't thought much about them since our mortgage advisor set them up. An oversight and if anything good was to come out of this ridiculous situation with compton it is that we are now aware about insuring the building. My question on this is- compton want us to send reciept of our insurance within the next 21 days and they will only require us to move over to their recommended insurer from when the policy is to be updated...I assume next year when it runs out? So if I took insurance out today for example, sent them this, would that mean they could only make us move over in 12 months? When that comes about, 2 weeks before could I send this common hold and leasehold act letter through that a lot of people have mentioned and thus stop them in their tracks? Or because I have no insurance to begin with and I take a policy out now, they'll see the date and I'll have got myself in a sticky situation where they'll charge me or still continue to force me to change over? 

Mark_d

Did your conveyancers not give you a copy of the lease to read before you bought your flat?
Your mortgage company is only really interested in buildings insurance.  This insurance is covered by the service charge you pay as part of the lease.
Are you personally planning to buy a buildings insuarnce policy for the entire building?

eddddy

Mark_d said:

This insurance is covered by the service charge you pay as part of the lease.
Are you personally planning to buy a buildings insuarnce policy for the entire building?

The OP is explaining that their buildings insurance isn't covered by the service charge as part of their lease. So the OP needs to arrange their own buildings insurance.

I suspect the property is a house, rather than a flat.

KatieJayne27

Yes sorry should have explained better. Our property is a house. We did get a copy of the lease and it's a hard lesson but as first time buyers literally learning everything as we go it's not something we went over with a fine tooth comb. I mean unless your specifically looking for something like this I feel it's relatively easy to miss. Especially as some of these documents, our lease included, are written in a pretty old English style of way. No one brought any of that to our attention, solicitors or mortgage advisor. Ultimately it's our responsibility but even the letter we received from Comptons says 'we would have expected your solicitors or conveyancer to have notified you of the term in the lease' which gives them the right to dictate which insurer we have for the building 

eddddy

Have you got quotes from Zurich plus other insurers to see how much the difference is?

As I understand it, if you now arrange your own insurance and serve notice on Compton within 14 days - they can't force you to insure with Zurich now or in future years (if you continue to serve notice every year).

But they might charge you an admin fee for dealing with the notice.

Here's some info: https://www.lease-advice.org/faq/i-am-a-leaseholder-of-a-house-and-my-lease-requires-me-to-arrange-insurance-with-an-insurer-nominated-or-approved-by-my-landlord-is-there-any-way-of-choosing-my-own-insurer/


You've been breaching your lease, but even if Compton find out, they can't fine you or punish you - that would be illegal.

If they had suffered a loss (or incurred costs) as a result of your breach, they could claim those losses/costs from you - but it doesn't seem like that's the case.

KatieJayne27

Yes. So the only way I could find to get quote from Zurich is to go through compton. They include a link in the letter. When you go direct to Zurich it says they are currently unable to offer home insurance? So the quote came back today for £279 per annum. Around £30 a month and that's just buildings. Not contents. I've been through a couple of comparison sites and it's around £27-£30 for buildings and contents with other insurers. Contents alone wouldn't cost much but it's the sheer principle that these guys can try and force you to take it out from Zurich which is more expensive and pocket a hefty commission at the same time. 

chanz4

remind them of the fca rules about shopping around, they cant force you to use

Flo87

Ask them how much it`s to buy the freehold, I`ve bought it last year from them for £800. When I enquire because I`ve had another insurance already sorted with different company they told it will be a £60 fee to added to my file.

Standup1

I have serious reservations about the conduct of Compton Group and the reason for them suddenly stipulating that you must insure with their preferred insurer. The issue is that securing direct property insurance from Zurich is near impossible, so it forces you to insure through Compton Insurance Services Limited - funny that, isn't it?

The alternative you have, is to respond to their previous letters issued about buying the freehold - also funny, isn't it?

It's a double edged sword for the tennant and a win-win for the money spinning Compton Group who stand to gain substantial sums from tennants through CISL or through sale of freehold. 

What is hilarious, is that Compton Group will no longer consider sale of the freehold until they have confirmation that the property is insured with Zurich - double bubble!

Standup1

As you can see, the only way to insure is to go through Compton Group's own insurance service under their block scheme.