Problem with leaseholder paying insurance premium

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    Problem with leaseholder paying insurance premium

    Sorry to ask another question so soon but may as well get all problems aired! I am a director of the residents association and the block insurance for the 11 dwellings and communal area is arranged by us on behalf of the freeholder. Due to excessive claims for water damage, the best quote we could get also had a £1,000 water damage excess. One leaseholder is now refusing to pay his share of the insurance and has said he will get his own. I don't think he has the right to do this but would appreciate confirmation. Thank you. Lorraine

    Read lease. If this demands that L insures (and prohibits T from insuring), T is legally incapable of insuring his flat. Even if he does misguidedly insure independently, he still has to pay service charge- just like everyone else- inc. his share of the block insurance policy premium. Opting-out is impossible.
    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
    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).


      Thank you for your advice - much appreciated.


        Also, bear in mind that if T does insure something that has already been insured by LL, most insurers will state in their standard terms that if other insurance is in place for the same insurable loss, the insurer will either refuse to pay out (if this provision is stated as a condition of the insurance) or agree only to pay their share of the loss.

        Such terms are based on the principle that insurance is a "contract of indemnity", meaning the assured cannot recover more than the actual loss incurred by benefiting from two identical insurance contracts.

        In practice, the lease will (or should if well drafted) normally prohibit T from taking out his own insurance in relation to the freeholder's building to avoid such complications in the event of a claim.


          Thanks again - your reply has helped to explain the situation.


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