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  • FIRST POST
    • Mal25
    • By Mal25 8th Aug 18, 11:39 AM
    • 10Posts
    • 6Thanks
    Mal25
    Building Insurance
    • #1
    • 8th Aug 18, 11:39 AM
    Building Insurance 8th Aug 18 at 11:39 AM
    In the latest email from the team it includes the following advice:


    ''Home insurance need-to-knows.
    -Buildings insurance is usually only for freeholders, contents insurance for all.



    I believe the first point is misleading advice. My understanding is that if you buy a house, and for example the land is leasehold, then building insurance is normally the responsibility of the house purchaser.
    I would have posted this to the team direct but I couldn't find a contact email address. Perhaps one of them will pick up on this point. Interesting to know what others think anyway.
Page 1
    • cattie
    • By cattie 9th Aug 18, 1:53 PM
    • 7,802 Posts
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    cattie
    • #2
    • 9th Aug 18, 1:53 PM
    • #2
    • 9th Aug 18, 1:53 PM
    Leaseholders do not take out buildings insurance, this is done by the freeholder & usually paid for from service/maintenace charges paid by the leaseholders. The statement you disagree with is in fact correct as buildings insurance tends to be only available to the freeholder/s of a property in England.
    The bigger the bargain, the better I feel.

    I should mention that there's only one of me, don't confuse me with others of the same name.
    • eddddy
    • By eddddy 9th Aug 18, 3:18 PM
    • 7,084 Posts
    • 7,055 Thanks
    eddddy
    • #3
    • 9th Aug 18, 3:18 PM
    • #3
    • 9th Aug 18, 3:18 PM
    Leaseholders do not take out buildings insurance, this is done by the freeholder & usually paid for from service/maintenace charges paid by the leaseholders. The statement you disagree with is in fact correct as buildings insurance tends to be only available to the freeholder/s of a property in England.
    Originally posted by cattie
    That's a bit misleading... and I think Mal25 is referring to leasehold houses, where leaseholders are often responsible for buildings insurance.

    (But very occasionally, owners of leasehold flats are also responsible for buildings insurance.)

    The short and best answer is... Read your lease to see who is responsible for buildings insurance.


    With many leasehold houses, the lease says the leaseholder is responsible for buildings insurance - but they must use an insurer nominated/approved by the freeholder.

    But the Commonhold and Leasehold Reform Act 2002 section 164 has overridden this, and given house leaseholders the right to choose another insurer.

    See: https://www.legislation.gov.uk/ukpga/2002/15/section/164



    So as Mal25 suggests - the email is trying to keep things simple, accurate and relevant for the majority of people, but it may mislead a minority of people.
    Last edited by eddddy; 09-08-2018 at 3:24 PM.
    • Myleaseholderisacheat
    • By Myleaseholderisacheat 9th Aug 18, 4:15 PM
    • 1 Posts
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    Myleaseholderisacheat
    • #4
    • 9th Aug 18, 4:15 PM
    • #4
    • 9th Aug 18, 4:15 PM
    I was searching for information on building insurance and found this thread .. but I don't understand the link supplied to be honest .. sorry. We own our flat. the flat is leasehold and we've just paid the freeholder 12K to extend the lease to 199 years. Cheap as we live in Hackney. Our freeholder never asks for service charge or maintenance and doesn't maintain our flat, or the rest of the house to be fair. We have large water marks on our ceiling as the flat roof of the flat above leaks. I've tried to get him to repair under the buildings insurance but really think we should just take our own insurance out and get it done. Would it be covered by a new insurance? I expect not and that we'll have to get a builder in to give us an estimate and take it on the chin and then take out building insurance? Would be glad of some guidance. Only just joined so if I'm posting in wrong place please let me know .. thank you.
    Last edited by Myleaseholderisacheat; 09-08-2018 at 4:17 PM.
    • eddddy
    • By eddddy 9th Aug 18, 4:46 PM
    • 7,084 Posts
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    eddddy
    • #5
    • 9th Aug 18, 4:46 PM
    • #5
    • 9th Aug 18, 4:46 PM
    ...but I don't understand the link supplied to be honest .. sorry.
    Originally posted by Myleaseholderisacheat
    The link only refers to leasehold houses - not flats. So it's not relevant to your situation


    Our freeholder never asks for service charge or maintenance and doesn't maintain our flat, or the rest of the house to be fair.
    Originally posted by Myleaseholderisacheat
    Are you sure that the freeholder has buildings insurance (assuming the lease requires them to)?

    You have a statutory right to see the insurance policy details.

    The freeholder would normally charge you for the insurance through the service charge. If there's no service charge, I'd worry that there is no insurance.

    We have large water marks on our ceiling as the flat roof of the flat above leaks.
    Originally posted by Myleaseholderisacheat
    So have you reported the leaks to the freeholder?

    If you reported them, and the freeholder has done nothing, and they've got worse - then the freeholder is probably negligent, and should cover the extra repair costs.

    I've tried to get him to repair under the buildings insurance but really think we should just take our own insurance out and get it done. Would it be covered by a new insurance?
    Originally posted by Myleaseholderisacheat
    No. An incident which occurred before a policy started won't be covered by that policy.
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