Who pays the excess deducted from claim?

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

  • Who pays the excess deducted from claim?

    Hi

    In the event of a claim on the buildings insurance (which is managed by the freeholder but paid for jointly by the leaseholders), who would pay any excess?

    The claim would be for damage to the external building but primarily affecting the property of one of the leaseholders due to a leak from my flat (although this relates to a much wider problem as per another post!)

    Thanks

  • #2
    What does the lease wording say?
    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
      Thanks very much for your reply.

      It doesn't seem to indicate this as it just states:

      That the Lessor will at all times during the said term insure and keep insured the Building for the full reinstatement cost thereof against loss or damage by fire flood subsidence and landslip and such other risks reasonably required by the Lessor in an insurance office of repute and to make all payments necessary.....

      Is there anything else I should be looking for?

      Comment


      • #4
        (Without knowing what costs are reclaimable through the service charge) I am going to assume the excess laid out by the freeholder is reclaimable through the service charge.

        Basically, are all of the freeholder's actual expenses/costs/charges reclaimable through the service charge?

        Comment


        • #5
          Originally posted by cuffley View Post
          Thanks very much for your reply.

          It doesn't seem to indicate this as it just states:

          That the Lessor will at all times during the said term insure and keep insured the Building for the full reinstatement cost thereof against loss or damage by fire flood subsidence and landslip and such other risks reasonably required by the Lessor in an insurance office of repute and to make all payments necessary.....

          Is there anything else I should be looking for?
          Yes. That wording is a covenant by L. Is there a covenant by T to pay the insurance excess on a claim?
          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


          • #6
            Who pays insurance excess (top flat, water-damaged)?

            I own (leaseholder) a top floor flat and I noticed a damp patch on the ceiling. I traced this back to a leak in a roof vent which was fixed at no cost to myself. However the stain on the ceiling caused by the leak remains. I have obtained 2 quotes around about £275 to repair but have been told that the communal buildings insurance has an excess of £250 which I am expected to pay.

            Is this correct? The freeholder takes out the buildings insurance.

            Comment


            • #7
              What does lease say about this aspect and the excess?
              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


              • #8
                So it depends on my lease terms?

                Haven't checked it but will do so tonight and let you know. Thanks.

                Comment


                • #9
                  From an insurance point of view ONLY...

                  the excess should be paid by the policyholder(s). If the freeholder is the policyholder then it would be them, however the leaseholder names (you and downstairs) may have been put on the policy meaning you should all share the excess.

                  Common sense says that really you should pay the bill as it is damage to your property only as I'm sure you wouldn't want to pay out if something happened downstairs.

                  Regardless of everything I have just said though, as mentioned by Jeffrey, your lease agreement will always override everything and be the deciding factor.
                  Steve Smith - Company Director at a leading Landlord Insurance broker with 17+ years experience in the industry
                  LandlordZONE Verified Poster and Topic Expert for Landlords Insurance since 2009
                  See my profile for contact details

                  Comment


                  • #10
                    Who pays the excess on subsidence claim?

                    hello, if tenant is on a full repair lease ie tenant is fully responsible, and there should be some effects from subsidence such as replacing ceiling sheets and plastering and repainting the ceiling and walls, is the tenant responsible to pay the excess of the insurance cover, usually say £1,000??
                    Also, is the landlord or tenant responsible for any time loss for sales, in say a showroom which might have to be closed to customers, for decorating?...

                    thanks, paul

                    Comment


                    • #11
                      Originally posted by pytliks View Post
                      is the tenant responsible to pay the excess of the insurance cover, usually say £1,000??
                      Also, is the landlord or tenant responsible for any time loss for sales, in say a showroom which might have to be closed to customers, for decorating?... thanks, paul
                      I have answered this assuming you are the Landlord ( but you could be the tenant ? )

                      1) You cannot expect a tenant to rebuild the interor or exterior if your house / Flat is falling down, however caused. Tenant expects safe and secure abode.

                      Repairs due to age, yes, but expect your tenant to leave if you start charging him for things not of his making, that he did not cause . He has a full repair lease, but not to rectify the ground on which it stands or subsequent damage caused by faulty ground.
                      This is none Legal advice, but i would be out immediately at the costs you are thinking of and implications in future.

                      2) showroom which might have to be closed to customers, for decorating?
                      Assume this may be a different property, but if in lease to redecorate, then tenant has to redecorate. Not your problem how he redecorates, or he has to shut for a while. You are renting them space, you don't own the business. How they make a profit and conform to the lease is their problem.

                      If it is in the lease that the property suffers from mild subsidence, and that the tenant will be obliged to keep property in good order, then tenant will have to fix. If not in lease, i think you are responsible, but those more learned than I, will advise you.

                      Comment


                      • #12
                        The tenant should have their own insurance for "business interruption" and therefore any loss of sales should not be responsibility of the landlord.

                        The policyholder(s) will always be the payer of the excess. Normally this sort of policy will be in the landlord's name.

                        As usual, the lease agreement seems to have the final say and although the above two points are correct in principle, the lease agreement could override them as such but keep in mind I am only commenting from the insurance side of things and have little knowledge of lease agreements.
                        Steve Smith - Company Director at a leading Landlord Insurance broker with 17+ years experience in the industry
                        LandlordZONE Verified Poster and Topic Expert for Landlords Insurance since 2009
                        See my profile for contact details

                        Comment


                        • #13
                          Excess on buildings insurance claim

                          Does anyone know who should pay the excess on a buildings insurance claim?

                          We are a leasehold flat, all other flats are freehold.

                          The buildings insurance is provided by the managing agent and the policy is in the name of the freeholders.

                          Comment


                          • #14
                            Are you sure that "all other flats are freehold"? Verify this via LR Online- seek copies of f/r registered title- before proceeding further.
                            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


                            • #15
                              Hi Jeffrey,
                              Yes all other flats are freehold and also 4 of the freeholders hold the freehold ot our property. There are only 6 flats in the block but they employ a managing agent to run the building.

                              If the other flats weren't freehold would this affect who pays the excess?

                              Comment

                              Latest Activity

                              Collapse

                              • Insurance claim (accidental damage) declined
                                nfp40
                                Hi All

                                I have had a buy to let for 11 years and recently while my wife and I were clearing the front guttering, she accidentally fell off a ladder into the front wall and caused it to collapse (she was not hurt, just bruised). I made a claim to my insurance company.

                                I hold...
                                19-07-2017, 16:37 PM
                              • Reply to Insurance claim (accidental damage) declined
                                jjlandlord
                                I agree with the others that for a wall in general, and a 'thick' wall like yours in particular to move that way just because someone essentially pushed on one side it must be inadequately designed and built.

                                At least your wife is lucky because if the wall had not moved she would have hurt...
                                21-07-2017, 16:08 PM
                              • Reply to Insurance claim (accidental damage) declined
                                MrShed
                                A bit like a collapsing bumper on a car - a safety feature almost

                                (jk)...
                                20-07-2017, 13:31 PM
                              • Flood risk insurance
                                Sunshine2014
                                Any ideas of landlord insurance with flood risk Please ? Struggling and loosing the will...
                                19-07-2017, 23:17 PM
                              • Reply to Flood risk insurance
                                jpkeates
                                Insurance broker, not an online application - ads on this site somewhere.
                                20-07-2017, 13:10 PM
                              • Reply to Insurance claim (accidental damage) declined
                                jpkeates
                                I'd have thought that if the wall hadn't fallen over, the wife could have been badly hurt.
                                20-07-2017, 13:09 PM
                              • Reply to Flood risk insurance
                                JK0
                                Direct Line?
                                20-07-2017, 11:57 AM
                              • Reply to Insurance claim (accidental damage) declined
                                tatemono
                                that 300 mm is what you need for a wall to be built to regs and I agree with ram that as the wall wasn't constructed properly it was no wonder it fell over.

                                The good news is that if you want to reconstruct it, it will be much cheaper than doing it properly and involve no digging up of your...
                                20-07-2017, 08:57 AM
                              • Reply to Insurance claim (accidental damage) declined
                                ram
                                This wall is an after thought, as none of the other houses seem to have walls.

                                If the wall has no concrete base going down about 300 mm and in width, as the insurance states, then that is why your wall moved over.
                                It is plain to see the wall parted from the ground where there is little
                                ...
                                20-07-2017, 08:03 AM
                              • Reply to Insurance claim (accidental damage) declined
                                royw
                                I am no expert but I wouldn't expect a wall to collapse when a person fell on it.
                                19-07-2017, 20:52 PM
                              Working...
                              X