Indemnity Insurance

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

  • Indemnity Insurance

    If a lessee takes legal action against the Lessor (A Flat Management Company) for service charge irregularities can the Lessor then take out indemnity insurance to protect the Officers paid for from the service charge fund?
    I can not find any provision in the lease to enable them to do so. Basically if they comply with the lease, company’s articles and the Landlord & Tenant Act it wouldn’t be necessary.

    Thanks

  • #2
    Company's officers are personally liable for a breach of lease committed by company only if they were personally at fault in some way. It's the company on which the duty to comply is placed (i.e. rather than the duty falling on its directors, unless blameworthy in some way). Yes- indemnity insurance can be obtained: I've seen a "Residentsline" policy underwritten by Norwich Union. Premium starts at £162.75 p.a. for block of up to 25 flats and max. cover of £100 000 (but larger blocks' insurance- and higher cover levels- are available).

    Problem: one cannot usually insure 'after the event'.
    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 Jeffrey.

      a. So, basically Officers who have a majority of the lessees supporting their actions can ignore the Lease, Companies Articles and the Landlord & Tenant Act while the minority suffer because of their actions and if they incur any fines along the way the insurance will pay.
      Seems a bit unfair to me.

      b. Does the LVT have the power to take any other actions than fining if there is evidence of serious miss-conduct?

      Comment


      • #4
        No to point 'a'. "Officers" (O) act in right of the company (C). It's C- not O- which is party to the leasehold arrangements and obligations.

        This is my analysis:
        If C fails to comply with leases, lessees can take enforcement action against it.
        If O fail to comply with Memorandum/Articles, C's members can take enforcement action against them.
        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


        • #5
          Thank you Jeffrey

          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