Buildings Insurance

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    Buildings Insurance

    Hi All, I hope you are well!
    Can you help me with a building insurance question please?
    The building insurance was placed with a broker, the broker got the share of the payments wrong initially and the insurance does not seem to have been placed in the company name by the directors. It seems to be placed in all the shareholders names which is unusual.
    Anyway one of the shareholders/ leaseholders has rightly disagreed with the wrong apportionment and a director has now taken it upon himself to pay the monies. The company has not paid this sole director \ shareholder has and now the sole director is suing the other shareholder for not paying. I find the situation odd as I though the company can only take action not a sole director who has taken it upon themselves to pay without discussion and made a claim personally at the county court. Has this happened to anyone else?

    #2
    Which party ( freeholder or management company for the building ? ) collects the service charge money from the leaseholders and places the order for buildings insurance cover ?

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      #3
      Hello Gordan, the incompetent director has put a small claim in to court to get the money back from the person who did not originally pay becasue they were confused about the wrong calculation this director did then the director provided no
      Demands for the payment of the insurance contributions were issued by the landlord to the Defendant but they were not accompanied by a document known as 'Service Charges Summary of tenant's rights and obligations' which is provided for in the Service Charges (Summary of Rights and Obligations and Transitional Provisions)(England) Regulations (SI 2007/1257) (the regulations).
      Section 21B (1) Landlord and Tenant Act 1985 provides that a demand for a service charge must be accompanied by the summary of the rights and obligations provided for in the regulations. Section 21B (3) provides that a tenant may withhold payment of a

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        #4
        I don't think any leaseholders should refuse to pay the buildings insurance contributions as this will be a requirement in the lease for the lessee to comply.

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          #5
          I agree but the incompetent director is not issuing people with the right calculations, he has now done it wrong twice and is demanding company expenses as part of this as well as high commission and no-one has been sent a valid demand!

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            #6
            The billing for payment of insurance contributions should include a note to show (1) . % service charge payable under the lease and (2) . Table showing the calculation of contribution from each leasehold flat.

            It should be noted that only the "named policyholder" can make a claim under the insurance policy and usually the "freeholder" or "RTM Company" is shown as the named policy holder. But for large blocks , you can ask for a clause to be added to policy , stating " the interests of the leaseholders and mortgage lenders are automatically noted"

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              #7
              Thank you for your help Gordon.

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