Buildings insurance share of freehold - joint policy or individual

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    Buildings insurance share of freehold - joint policy or individual

    I own a flat in a house conversion of 6.

    I myself have landlords + buildings policy until september, but we need to renew our house buildings policy end of may.

    I understand i cant have 2 separate policies for buildings that cover my flat.

    Can everyone just get their own buildings insurance and claim apportioned? Or is it imperative that we have a joint buildings policy?

    #2
    It is recommended to get a joint buildings policy to cover the entire building. You can't rely on others to get their own insurance which would lead to problems if there was a joint claim and one party was uninsured. Even if they are insured, getting two different insurers to liase and share claim costs is also a problem and adds delays and stress. A joint policy is better in everyway apart from organising everyone to agree and pay their proportion. Setting up a management company is a common way of handling this.
    Steve Smith - Company Director at a leading Landlord Insurance broker with 18+ years experience in the industry
    LandlordZONE Verified Poster and Topic Expert for Landlords Insurance since 2009
    See my profile for contact details

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      #3
      Thank you. We have agreed not to set up a management company now due to the cost, but it is adding complications.

      Would I need to cancel my landlords insurance (which seems to include buidlings? I was told by a broker that a whole house policy would include landlords insurance, which I do not want because I am likely to claim more than we would claim on buildings so would prefer my own policy.

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        #4
        You can still get a joint policy for the entire property without a management company. You will just need to take out a policy with all the freeholders individidually noted as policyholders. Obviously this does mean that if freeholders change then the policy needs to be updated (having a management company negates this as the policy is in the company name). I would still try as much as you can to go down the joint policy route. If this is not possible then you should take out a buildings insurance for just your flat as a final option.
        Steve Smith - Company Director at a leading Landlord Insurance broker with 18+ years experience in the industry
        LandlordZONE Verified Poster and Topic Expert for Landlords Insurance since 2009
        See my profile for contact details

        Comment


          #5
          Maybe I'm missing something, but what use is taking out your own buildings policy?

          If a fire burnt down the whole building, and you were the only 1 of 6 who had a buildings policy, what would your policy payout??? It wouldn't cover the rebuilding of the whole building.

          A joint policy is surely the only way?

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            #6
            The freeholder is the legal owner of the building and should be the "applicant" named on the policy for insuring the entire building.

            The leaseholders own a lease and does not have an insurable risk.

            So the name of policy holder should be the "freeholder" but you can add a clause in the policy stating "the interests of the Leaseholders and Mortgage Lenders are included with the policy holder."

            This will allow other parties to make a claim under the insurance policy.because normally under the insurance policy , a claim can only be made by the policy holder..

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