Belinda Thorpe advises on some of the recent questions received at Flat Living.
I know insurance isn’t the most riveting topic for most, but you will be surprised how much alarm is raised when there is a problem. Some recent questions raised to Flat Living are detailed below…
Our current block insurance contains an “unoccupancy” clause: coverage is conditional on no flats being unoccupied for more than 30 days unless insurer agrees in writing for the additional period of time.
Most specialist flats policies only apply the unoccupancy clause if all flats are unoccupied at the same time. So if all flats at your block become unoccupied for over 30 days then you would need to notify their Insurers and your cover may be restricted. It may be that your policy is not designed specifically for flats and apartments; however, there are numerous providers that can provide suitable cover.
Our buildings insurance premium is due soon. We have not activated S20 consultation previously. However, the premium is increasing, are we right to treat the insurance renewal as one Qualifying Work of S20 consultation, or should we consider it as a Qualifying Long Term Agreement?
As insurance is a requirement rather than a choice as determined by your Lease, it is not something that could be voted against or challenged, therefore consultation is needless.
Do you know of any Insurer who will insure leaseholders if water from our pipes or showers leaks into the flats below? Once the pipework enters the flat itself, we have been advised by our Freeholder that it becomes the leaseholders responsibility. So if a pipe comes off a washing machine, that damage is the responsibility of the leaseholder.
Most specialist Flats Insurance policies will cover water leaks between properties. I would recommend corresponding with your Freeholder to gain written confirmation that this is actually correct. I would also request a copy policy wording and schedule relating to your property which I can review on your behalf.
When our Landlord purchased the freehold of our block from the property developer they appointed a property manager who changed our insurance provider without any warning or reason. The cost of the insurance nearly doubled for virtually the same cover, we have located a number of alternative quotes, which are half the price we are being changed for a comparable policy. Can we force them to change insurance companies to one that offers the same cover for less and can we make them confirm how much insurance commission may be being received?
As the Managing Agent has arranged the insurance, it may have been under instruction from the new freeholder to where cover is to be placed.
You do have the right to request and be provided with the details of what your premium is. If the Managing Agent/Freeholder does not provide the information requested you can take the Managing Agent/Freeholder to the First Tier Tribunal, however you would be expected to pay the fee for this hearing. The first tier tribunal will review the information and ensure anything that is “unreasonable” is removed. Details of first tier tribunal can be found here.
We have appointed a new property managing agent. They have suggested we should review the sum insured shown on our buildings insurance policy. Our policy is index-liked each year, is this necessary?
We recommended that properties are assessed every 3-5 years to ensure the sums insured stay accurate and in line with any changes or alterations. Most leases require the building sum insured to be equal to the full reinstatement cost and to include specific items such as kitchens, bathrooms, fitted furniture and the like contained within individual flats. The quality and cost of these fixtures may vary from flat to flat. With more flat owners choosing to improve rather than move, can you be sure that the value you have placed on your block is adequate?
A few more downloads on this subject are available on the Flat Living website:
