Buildings/content ins for house with two flats, one occupied by owner.

Bertsmum122

Hi. My 86 year old dad owns a house which he converted into two flats back in the late 1980’s. He lives in the top two floors and rents out the ground floor self contained one bedroom flat. It recently came to my attention that he is purchasing annual buildings & contents insurance with no mention of the rental property. What kind of insurance does he legally require? Thank you. 

gwynlas

He needs building insurance as freeholder for the building which contains both flats.

As owner occupier he needs his own contents insurance

MyRealNameToo

Bertsmum122 said:

Hi. My 86 year old dad owns a house which he converted into two flats back in the late 1980’s. He lives in the top two floors and rents out the ground floor self contained one bedroom flat. It recently came to my attention that he is purchasing annual buildings & contents insurance with no mention of the rental property. What kind of insurance does he legally require? Thank you. 

Legally doesnt require any insurance, Home is not a compulsory class of insurance though if you have a mortgage you are likely to be contractually obliged to have home insurance.

I assume the bottom unit is rented out and hasn't been sold off as a leasehold property? 

Generally a block of flats normally requires Block Insurance, a form of commercial property insurance designed mainly for the freeholder to buy when obligated to the leaseholders to do so. Most are more aimed at the professional freeholder on a big block however that doesnt stop them quoting on small developments and there are some that specialise in house conversions etc (though they are intermediaries not the insurer themselves). 

There are some that have managed to get Landlord insurers to consider the smallest of developments under a standard policy. 

Find a good, ideally advisory, local broker and see what they can come up with. Be clear if they are working on an advisory basis or not though as if its non-advisory its up to you to determine if its fit for your needs and they could give you prices on inappropriate policies.