Leasehold Second Home insurance

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

    Leasehold Second Home insurance

    Hi All

    I have a leasehold holiday home (flat).

    The lease states: . . . "the lessor will at all times during said term (unless such insurance shall be vitiated by any act or default of the Lessee) insure and keep insured the building including all common areas and common services against fire and such other risks (if any) as the Lessor shall from time to time determine . . . ."

    There is a 30 day unoccupancy exclusion clause on many of the insured risks and, there are occasions when I do not visit for more than 30 days.

    I would contend that 30 days is an unreasonable limitation and being away for that amount of time does not constitute 'default') However I worry that this means these risks are not insured if I am away for 30 days or more and, for example, if the building is destroyed by fire I would then be liable for rebuild costs (or at least that portion of the rebuild costs associated with my part of the building)?

    If I am so liable, what can I do? Second home insurance seems entirely inappropriate since I am then insuring most of the risks twice?

    Thanks for an insights




    #2
    I think your best bet is to notify the insurers directly that it is occasionally vacant for longer periods . (As long as your lease has no clause against it) otherwise you may be liable as you say.
    Failing that make sure it's occupied at least once a month.
    You can use C19 as a valid excuse currently and once you've notified them you should be covered.
    Most leases will have a clause preventing anything to vitiate the insurance so you could be in breach by not being honest.
    A second policy is not really a solution as it wouldn't cover the whole block anyway .

    Comment


      #3
      yes but . . . the lease says

      "The lessor will at all times during said term (unless such insurance shall be vitiated by any act or default of the Lessee) insure and keep insured the building including all common areas and common services against fire and such other risks (if any) as the Lessor shall from time to time determine . . . ."

      Surely not unoccupancy does not count as 'act or default'

      The 30 day rule is not mentioned in the lease. And why 30 days?
      Does that mean the insurance company could say 7 days and I can do nothing?
      Surely it is the landlords responsibilty to insure . . . AT ALL TIMES . . '?

      If the landlord can arbitrarily say insurance stops at 30 days and I can do nothing, he can also say insurnace stops at 14 days unoccupancy or 7 days unoccupancy and I can still do nothing?

      Comment

      Latest Activity

      Collapse

      • Rent Guarantee Insurance
        by oi2004as
        Hi

        I would be interested in your view on the following

        I received a renewal Legal & Rent Guarantee Insurance documents from Rentguard (which initiallyy I purchased through Openrent)

        There is the following condition in their 'statement of fact':
        "The...
        11-07-2020, 11:59 AM
      • Reply to Rent Guarantee Insurance
        by AndrewDod
        I guess the only point ever to insure is if

        a) You think they have calculated a too-low premiums based on the (correct) information you gave (extremely rare) so that you will statistically "win"

        b) If the event (if it occurs) will be life changing. Like medical travel...
        11-07-2020, 18:14 PM
      • Reply to Rent Guarantee Insurance
        by Section20z
        Insurance can never pay out more than it takes in premiums so you're on a hiding to nothing. The only way you'll ever win on insurance is if you have below average luck, but in that case you'd probably also find you'd forgotten to pay the premium ­čĄö
        11-07-2020, 18:04 PM
      • Reply to Rent Guarantee Insurance
        by AndrewDod
        Yes, RG insurance is pretty much a waste of time. And this is a ludicrous clause at so many levels. I'd drop the policy....
        11-07-2020, 17:56 PM
      • Reply to Rent Guarantee Insurance
        by Beswick
        Contact an insurance broker and get their opinion. They should be quite knowledgeable, plus you've got the backup of their professional indemnity insurance and the Ombudsman if they sell you a policy that doesn't suit your needs.
        11-07-2020, 12:54 PM
      • Reply to Rent Guarantee Insurance
        by DPT57
        I think its one of the reasons why no experienced landlord I know takes out rent guarantee insurance
        11-07-2020, 12:42 PM
      • Insurance broker relationship
        by Stacker
        If the company is the freeholder called the principal and the directors called its agents. Could an insurance broker be called an agent of the company also and would the insurance broker owe fiduciary duties to the company?
        07-07-2020, 19:02 PM
      • Reply to Insurance premiums going through the roof
        by Section20z
        desamax,

        More likely there was a big claim and the renewal went up so the only way to get reasonable cover was to accept a high excess.
        You can ask for claims history but I doubt they would tell you it had been declined, they don't normally decline renewals,. Just put price up so...
        06-07-2020, 12:55 PM
      • Insurance premiums going through the roof
        by flyingfreehold
        Those seeking renewals of buildings policies will find that insurers are taking a much tougher line especially where there have been chunky losses and premia are rising dramatically

        A broker put it to me this way. In 2020 insurers have made negative income on its investments therefore...
        17-05-2020, 10:41 AM
      • Reply to Insurance premiums going through the roof
        by flyingfreehold
        I think the present insurers are perfectly reputable. I cant see that there is a way of ascertaining that the previous insurer declined. Companies are fickle and they do from time to time exit specific types of cover....
        06-07-2020, 08:53 AM
      Working...
      X