Rebuild Value of flats

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    Rebuild Value of flats

    I have bought a property, a flat, which is in a row of 3 with 6 garages underneath. Would the insurance rebuild value just be what was stated on the Home Report? One Insurer I spoke to seemed to indicate my rebuild was too low so I wondered whether she meant I should include the rebuild cost of the 3 flats a 6 garages - which seems excessive!

    #2
    Well they try and cater for the worst case scenario. If a property is touching another property then the rebuild costs can be higher if the worst happened.
    "I'm afraid I didn't do enough background checks apart from checking her identity on Facebook" - ANON

    What I say is based on my own experience and research - Please don't take as gospel without first checking the gospel yourself.

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      #3
      If you have a professional report which says what the rebuilding cost of your property is then this would be what you insure it for. It is unlikely that the insurer you spoke to is qualified to give advice on what the rebuilding cost of your property is. They may have indicated it sounds low but if you have a professional report that confirms the current figure then do not worry.

      I'm guessing this situation may have come up because you are seeking building insurance on just your flat. Although some circumstances exist that mean flats have to be insured separately, it is always advised wherever possible to insure the block as a whole, normally this is done by the freeholder of the entire property.
      Steve Smith - Company Director at a leading Landlord Insurance broker with 20+ years experience in the industry
      LandlordZONE Verified Poster and Topic Expert for Landlords Insurance since 2009
      See my profile for contact details

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        #4
        Yes, I'm looking for insurance. Thinking about Oasis, any advice on them? The 2 properties either side are privately owned too and the garages beneath are council properties.

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          #5
          Can't give you any advice on the company you have mentioned as I have never heard of them. You can always check the LandlordZONE Insurance Directory for insurers/brokers that are tried and tested.

          One of the first things to do is to check that the policy is underwritten by a reputable insurer and that anyone you deal with (brokers and insurers) are authorised and regulated by the FCA. Always a good starting point. You can then do a Google search for "COMPANY NAME Reviews" to see what comes up.
          Steve Smith - Company Director at a leading Landlord Insurance broker with 20+ years experience in the industry
          LandlordZONE Verified Poster and Topic Expert for Landlords Insurance since 2009
          See my profile for contact details

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            #6
            Aah no you are both on the wrong lines.

            The Home report represents a value for the property that you are buying however your solicitor needs to read the lease and establish who insures your property or the building. In many cases you will find that the building landlord normally a freeholder insures the building which includes your flat and you pay insurance as a rent or part of service charge.

            if the building is insured for say £360k ( WHICH HAS NOTHING TO DO WITH THE PURCHASE PRICE) then based on apportioning the reintegrate costs ( as set out in the lease say 28%) each flat would be be £100K and £10k for the garages. The figure of £80 would then make sense and you know that you are adequately covered in terms of reinstatement value.
            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.

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