What is and is not insured and by who

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  • What is and is not insured and by who

    I have purchased the leasehold of a couple of flats in a purpose built block.
    According to the lease the landlord owns the concrete structure and brickwork within the building together with common areas etc.
    For my part I own the plaster on the walls, internal doors, kitchen and bathroom units, internal stud partition walls, together with insulation and laminate flooring above the concrete floor. I also own the service (water) pipework which services my flat only.
    According to the lease the freeholder must insure the building,My questions are
    1) are the bits in my ownership covered by his buildings insurance.
    2) If, as I suspect, my bits are not insured, how can I insure them and
    3)will lack of insurance on these bits stop me getting Landlords insurance such as loss of rent insurance etc
    It seems a minefield, any assistance would be appreciated

  • #2
    The bits in your ownership are covered by the freeholder's building insurance. However you might want to take a basic landlord's contents policy, just to get personal liability insurance in case your tenant injures himself. You can probably tack your loss of rent cover onto this policy also.


    • #3
      Hi JKO
      Thanks for your feedback. I have spoken to a couple of Insurers who have not been happy with the split of who owns what. It has been suggested that you cant insure what you dont own. One insurer said I needed to own either all or part ( by way of management company) of the building before I could get Landlords insurance


      • #4
        You have dug your own hole on this The flat owner does not own the plaster, floors, kitchen units etc, they are leased for x years and at the end of the lease to be given back repaired or replaced as appropriate. As JKO says your covenant to insure does not have much bearing on this and stands in it's own right for rebuilding purposes as defined in the lease.

        In simple terms and in most cases, it requires the flat rebuilt as if it were a new build home, no occupants possessions and ready to carpet curtain etc.

        There are many specialist insurers and brokers for blocks of flats policies who can help including advertisers here. The people to whom you spoke clearly don't understand it.

        Most importantly you need a valuation for insurance purposes and that has nowt to do with the re sale value of both flats.
        Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.


        • #5
          Thanks Leaseholdanswers
          The penny has just dropped. We do not indeed "own" any of the items we simply lease them and then give back at the end of the lease repaired etc as you stste. The freeholder owns the lot, therefore he is able to insure the lot and I simply insure contents, public liability, loss of rent etc
          Glad I posted you have both helped enormously


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