Insurance of leasehold apartment and contents

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Insurance of leasehold apartment and contents

    hi,

    i pay a service charge for my apartment which provides for the buildings insurance cover. Obviously I still need to cover myself for 3rd party liability and other things. All of the policies I have looked at still contain cover for buildings - I'm not so keen on paying twice for the same cover.

    Does anyone have a recommended insurer for dealing with this situation? The issue is compounded as I have multiple apartments in the same block, so I really want to avoid over paying for "double" building insurance for each apartment.

    thanks,
    HTM

    #2
    Originally posted by hypotheticalmonkey View Post
    hi,

    i pay a service charge for my apartment which provides for the buildings insurance cover. Obviously I still need to cover myself for 3rd party liability and other things. All of the policies I have looked at still contain cover for buildings - I'm not so keen on paying twice for the same cover.

    Does anyone have a recommended insurer for dealing with this situation? The issue is compounded as I have multiple apartments in the same block, so I really want to avoid over paying for "double" building insurance for each apartment.

    thanks,
    HTM
    There are plenty of contents- only-cover policies. Everyone else in flats has one,surely? Your freehold reversioner/landlord/management company ought to be insuring the building on a block policy within the service charge; that should include third-party liability.
    JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
    1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
    2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
    3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
    4. *- Contact info: click on my name (blue-highlight link).

    Comment


      #3
      it would appear this is much trickier than it first appears.

      What is required is Property Owners Public Liability insurance. The liability insurance held by the apartment block management company has this insurance cover for their employees, while working in the block. It does not cover individual tenants, in individual apartments e.g. falling over coffee tables or having pictures fall off walls onto their heads.

      Now, is it possible for a Landlord (me) to get P.O.P.L insurance without buildings cover (which is already provided by the service charge)? It would appear not. Despite ringing these "specialists" none were able to offer the cover stand alone:

      RentGuard
      Swinton 0800 316 6825
      Versatile Insurance 0845 838 6933
      MoreThan Business

      So now I am left with dual cover for buildings (great fun if I need to claim.. not) and single cover for P.O.P.L

      Comment


        #4
        "Public liability" could scarcely include lessees, could it? Why cannot lessor buy add-on cover with its existing policy?
        JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
        1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
        2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
        3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
        4. *- Contact info: click on my name (blue-highlight link).

        Comment


          #5
          Forgive me for saying so, but your 2 posts confuse a number of different insurances. However they are all very relevant and your right to be concerned.
          The block Buildings insurance policy should include Property Owners Liability (POL) so any third party injured as a result of something caused by the building will be covered by this. e.g. slate falls from roof, trip on a loose communal carpet. One small tip, if more than 50% of the building is let out make sure the insurers are aware. I'd recommend writing to your block insurers to check that POL is covered and for how much. It wouldn't do any harm to ask them to note your interest and why you want them to. There may be a very small admin fee but the premium shouldn't change.
          You mentioned employees of the block being injured. This is Employers Liability. Although necessary not relevant for your post.
          If the Buildings insurance policy is in your name then make sure that it extends to include Public Liability (PL). PL deals with third parties being injured but from the activities of you being a landlord rather than from the building itself e.g. your tenants being hurt from your dodgy coffee tables.
          PL & POL are not the same but are often confused as such.
          If the buildings insurance policy is not in your name then you have several options.
          1) Ask if the buildings policy can be extended. Not always possible but often the cheapest solution.
          2) Ask the buildings insurer to arrange a separate policy for you. Not always as simple as it might sound and not the most cost effective solution, but at least you have the leverage of the buildings premium to nudge the insurer into helping.
          3) Go to a specialist insurer or insurance broker. There are plenty more than the ones that you mention and its disappointing that those that you approached couldn't be more helpful. HOWEVER rather than ask for a stand alone PL insurance ask for a Landlords Contents policy that includes the PL. In the wacky world of insurance its often simpler and cheaper to buy a contents and PL policy together than it is to buy either of these in isolation. Don't ask me why or I might just tell you. I appreciate that if letting properties unfurnished there might be no contents, so hang a picture on the wall (not a valuable one).

          If you have employees then you will need Employers Liability (EL). Things are a little more complicated here and you will need an Office Package policy or a Business Insurance policy.

          You mentioned "other insurances", but didn't specify them you could ask for Legal Expenses, Rent Protection and Home emergency. Not always available as a packaged product with contents, but you can always ask.

          Just in case anyone is reading this and either lives in the flat/apartment or only has one flat that they rent out, they should find that their Household Contents policy covers PL or that it can be extended to include the rented property. A Landlords Contents policy may still be needed. Make sure your Household contents insurance insurer knows you're renting out your property.

          Whether it's PL or POL I'd recommend a minimum of £1M worth of cover but £2M would be better if you can afford it. EL needs a minimum of £10M and its the law that you have it.

          Whilst the above would appear to be adequate specialist advice is essential.

          Comment


            #6
            If you do a google search on " Landlord insurance", you will find the companies offering cover for landlord items inside the flat.

            e.g norwich union , letsure etc.

            Comment

            Latest Activity

            Collapse

            Working...
            X