Buildings insurance advice needed

[Wozza]

(Christ, it's come to this. Don't worry, back to pics of women etc very soon.)

I've just bought a ground floor flat (there's a flat above). I own the freehold.

It seems the previous owners had buildings insurance for the entire property, and billed the leaseholder in the top flat annually (for half of it presumably).

Is this normal? (Is this what's called a block policy?)

I wanted to use Liverpool Victoria, but they don't cover this sort of arrangement.

 

[Kylies Stunt Arse]

It depends on the terms of the lease. I used to be in a similar position but the terms of the lease meant that I didn't need to insure the whole building.

 

[aftershavedave]

depends on whether you want buildings insurance (and what they are doing is normal, just need to make sure it's properly arranged) or buildings contents insurance (which you'd do yourself).

if the property is managed then the agent would do this.

i'm sure our resident insurance expert would know better but hb&b is having a nap since he's been making coffee since 8am

 

[Gwylan]

It's quite common to have people in leaseholds doing this and sharing it, I've not heard of it being done this way. Can't you rip off the person in the flat above now you're a hard-hearted capitalist?

You still in Balham?

 

[desprateseagull]

if the property was managed, b/ins would be part of the service charge paid by each leaseholder.

otherwise, its split according to terms of the lease- afaik, lessees can apply to arrnage their own insurance if provides similar cover.


check with upstairs owner, or the solicitor who handled the purchase for you..

 

[Barnet Seagull]

AFAIK It should be covered in terms of the lease. You may be liable to cover the costs if not.

 

[sully]

Usually you have to insure the entire building with the same insurer to ensure that there is no argument if there is an issue with the structure. No many insurers would insure part of a building (particularly if that didn't include the foundations or the roof).

As others have said, it's usually arranged by the managing agent and included in the service charge. Each lessee is then responsible for their own contents insurance.

It'll all be set out in the lease, though (assuming it was drafted by someone who knew what they were doing!).

 

[Eastleigh Seagull]

I lived in a two floor flat - we were upstairs and this old git was downstairs. The freehold was in the name of a company of which the owners of the two flats were joint owners. As part of the ownership of the flat each property was responsible for its own buildings insurance. But it was a real bugger to find anyone to insure us on this basis - also after a year we discovered the old git hadnt taken any buildings insurance, which actually invalidated our policy. It is much easier to get insurance in the way you describe and bill the upstairs people.

Not sure why I bothered writing that actually...

 

[Wozza]

As others have said, it's usually arranged by the managing agent and included in the service charge.

But as the freeholder, I am the managing agent.

 

[Kylies Stunt Arse]

But as the freeholder, I am the managing agent.

So was I Wozza. You still need to check the terms of the upstairs lease. Otherwise, as said elsewhere you need to make sure you're buying seperate buildings insurance to contents insurance and bill the above flat for half. Direct Line will do this.

 

[Wozza]

Yeah, that's the situ - surprised that Nationwide, Liverpool Victoria etc won't insure this. Will give Direct Line a shout, thanks.

 

[Tory Boy]

It seems the previous owners had buildings insurance for the entire property, and billed the leaseholder in the top flat annually (for half of it presumably).

Is this normal? (Is this what's called a block policy?)

Perfectly normal.

To insure an average 6 flat block should cost you in the region of £5-800.

If you insured them seperately, and most insurers don't offer that, it will cost you about £2-300 a flat.

TB