Commercial insurance on Residential Flats

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    How would I know if what they have sent me is all the relevant information? Does a 1 page ‘complete flat owner certificate’ and a ‘complete property owner policy wording’ brochure containing introduction, how to make a claim, complaints procedure, insuring clause, policy definition, policy conditions, policy exclusions etc etc sound about right?

    the freeholders are insured for things like loss of rent. Would that benefit me if I rented out or only the policy holder? Should we have that kind of cover?


      There are really two different types of potential loss of rent cover. If they are talking about a) alternative accommodation for both ordinary lessees and tenants of lessees in the case of a problem in the freeholder's demise that causes the building to become uninhabitable then fine b) If it is effectively landlords insurance being purchased then that is an inappropriate insurance policy (and if such a claim led to an increase in premium or was made at all that would really be a type of fraud).


        The problem doesn't have to be in the freeholder's NON-demised parts. It could be a fire in an individual flat. The important thing is that is not the result of an action by the tenant. In fact you may well find that that there are get out clauses for the insurer if the tenant is the cause of an otherwise insurable event.


          The insurance policy may be very basic insurance policy one for a "commercial building" and not specifically a policy for a block of leasehold flats policy.

          Usually only the policy holder can make a claim under the insurance policy. You should check the wording in your own lease to see if wording requires the buildings insurance policy to include names of the leaseholders, giving right to make a claim under the policy.

          What is the total insured value for re-instatement of entire building ? . How many flats and average size ( square feet ) ?

          For average size flat around 600 sq ft flat , I would expect the insured cover to be roughly around £100K/flat . So if you multiply by the no of flats in your building , it should be approx. the insured value for the building.

          The summary of insured cover ( for the building) from the managing agent should include the starting date of the policy, the policy number , the annual premium for the policy. If you multiply by the % you pay under service charge, you can calculated the insurance charged for your flat. .


            The OP says there is a "flat owner's certificate", which if it came from insurer suggests it is intended for blocks of flats.



              What I’ve been sent does not include the annual premium and the broker won’t speak to me so I can’t ask about the premium paid nor if any commission was paid. There are 27 flats across 5 blocks in one large Victorian building. It says we are insured for £8,500,000.00 which based on what you said seems unnecessarily high. There’s also another figure in brackets of £6,500,000 for buildings excluding landlords fixtures and fittings and tenants improvements. Not sure what that means either.

              So can the broker refuse to give me information about premium charged or if commission was paid? How do I find this info out then? How can I establish if we are overinsured? Is there anything else I should be checking?


                Originally posted by Stacker View Post
                So ask to make an appointment at the office who is holding the information and go and inspect it.
                Do they have to provide that facility in my home town?


                  Originally posted by Dazvader View Post
                  Thanks for that input. Is your policy classed as a block policy or commercial. Do you have things like loss of rent, terrorism cover etc. What about policy excess for any claims and who’s liable to pay the excess in the event of any claims? Thanks for your help.
                  Apologies for the tardy reply but I've only just seen this. I would have to look at the Policy but from memory, it is a block policy rather than commercial. Terrorism cover is mandatory and it is one of the major reasons why we've had to have it, as well as fire. As for excess, there was one incident where the two Landlord of the two relevant flats had to pay but for a communal incident (theft of lift equipment), we didn't. If you need any more information, please reply and I will refer to the Policy T&C's.


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