Freeholder has taken out Landlord Insurance instead of Block of Flats insurance

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    Freeholder has taken out Landlord Insurance instead of Block of Flats insurance


    I'm a leaseholder of a top floor flat in a semi-detached house converted into two flats. Per the terms of my lease, the freeholder is responsible for insuring the building, and I am required to pay my share of the premium.

    The ground floor flat and freehold are under new ownership, both owned by the same person. The new owner has let his flat to a tenant on an AST.

    I have just received an invoice from the freeholder asking me to pay half of his insurance policy, but I think he might have bought the wrong type of policy?
    • The policy is entitled "Property Owners", with a description of "Property Owners occupied as Multiple Flats Converted"
    • It contains the following sections:
      • SECTION 1: THE STRUCTURE, with £300k rebuild cost, which sounds about right
      • SECTION 2: LANDLORDS CONTENTS, including:
        • Floor Coverings £5k
        • Landlords Contents £10k
        • Contents of Common Parts £0
      • SECTION 3: PUBLIC LIABILITY
      • SECTION 4: RENT RECEIVABLE, including:
        • Loss of Rent £10k
        • Loss of Book Debts £25k
      • SECTION 5: GLASS AND SANITARY WARE, including:
        • Glass and Sanitary Ware
        • Shop Front Glass
      • SECTION 6: EMPLOYERS LIABILITY - excluded
      • SECTION 7: PERSONAL ACCIDENT - excluded
      • SECTION 8: COMMERCIAL LEGAL EXPENSES

    I have two main concerns with this policy:

    1. This looks like a landlord's policy, and from what I've read, the building should be insured under a "block of flats" policy by the freeholder;
    Not sure if this matters though, as long as the building and rebuild costs are covered? Does it matter??

    2. I'm being asked to pay half of the whole policy, which means I'm subsidising his LL cover for his flat that he's renting out (specifically, sections 2, 4, 5 and maybe 8).
    The whole policy cost is not a huge amount of money though (£360), so my share is only £180, so it the answer to point 1 is "it doesn't matter how the building structure is insured", and a Block of Flats policy is likely to cost more than this (any ideas on likely cost please??) , would I be better off just shutting up and paying 50%? I don't want to end up complaining and then having to pay more for no good reason!

    Thanks in advance for your replies - I'm finding this a little confusing!!

    #2
    What does the wording in your lease say about buildings insurance ? Some leases say the " the insured cover for buildings insurance is decided by the lessor ( freeholder ) and £180 for your 50% share does not look excessive .

    The only way to find out the cost of insurance is by getting quotes from other insurance brokers in your area.

    Comment


      #3
      This looks pretty identical to our policy - Property Owners with the same headings as yours. The freeholder owns our building, there are two flats and a restaurant, all on long leases.

      Comment


        #4
        Meant to say that the lease should give an indication of the contribution required from each party.

        Comment


          #5
          A Property owners policy can be a block of flats policy, or a parade of shops with flats over, or an office block. Landlords contents is included as standard, ie no additional premium) and that doesn't mean the landlord's contents in a flat he might own, it means landlords contents in the common parts( if any)

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