Am I being robbed on building insurance?

Am I being robbed on building insurance?

0:04 AM, 4th July 2023, About 10 months ago 3

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Hello, We are in a block of 15 flats some rented, some of us live here. We own the freehold.

Is it common practice for a director to use the building insurance when their tenant had an internal fire in the flat that was fuelled by their hoarding habits?

We have had to pay £1,000 promptly as it was classed as an ‘extra ordinary’ payment for the insurance excess.

The flat was done up to the tune of £100,000 plus loss of rent.

Because the owner of the flat went straight to the insurance company, the managing agent said it has nothing to do with them.

Now our insurance has gone from around £4,000 – £12,500.

If that is the case of being allowed to use the building insurance as we feel free, shall I cancel my contents insurance?

Thank you,


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Graham Bowcock

10:42 AM, 4th July 2023, About 10 months ago

Presumably the cover you had covered the lossess that the leaseholder incurred - whether or not the circumstances were debatable.

It seems unusual that a block policy would cover a leaseholders' loss of rental income. This sort of cover is usually something that the landlord's own insurance would cover.

As for cancelling your contenants cover, I'd be wary about this as you may find that you are not fully insured in the event of an incident in your flat. It would also be unsuual for the block policy to cover contents.

My advice is for the directors to review the policy to make sure if is appropriate. You really need buildings' insurance (bricks and mortar) along with public liability and employers' liability (even if there are no staff directly employed it gives cover for odd job men). If the policy is providing cover for residents' contents and loss of rent then it may not all be necessary.

Ian Narbeth

16:26 PM, 4th July 2023, About 10 months ago

Ordinarily the freeholder landlord (for whom the managing agents act) would be responsible to claim on the insurance and effect repairs. The director may have used his position to go straight to the insurers. Without more information, it is not possible to say if anything has been done wrong. I am not surprised the premium has gone up as the claim is equivalent to 25 years' premiums!

Judith Wordsworth

10:09 AM, 8th July 2023, About 10 months ago

That’s why there is buildings insurance in place.
Daft to cancel your contents insurance as that covers your contents NOT the fabric of the building and fixtures and fittings.
Would be up to the Assessor to agree the amount covered to rectify the damage,
Most leaseholders contact the insurance company or broker direct to claim.
You cannot “do up a property” to its betterment under a insurance claim and Insurance Assessors work for the Insurance Company so usually check on a regular basis.

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