Insurance premium not paid but owner now wants to make a claim?

by Readers Question

2 years ago

Insurance premium not paid but owner now wants to make a claim?

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Insurance premium not paid but owner now wants to make a claim?

I own one of five flats in a converted house and as I’m the underlessor am responsible for obtaining and paying the building insurance. paid

Normally I receive the correct payments from the other four owners(underlessee) but this year one refused to make a payment and now wants to make an insurance claim for water damage in their flat.

Where do I stand regarding this please?



Neil Patterson

2 years ago

Hi David,

I will see if Jason, our insurance expert, is around to comment for you 🙂

Jason McClean

2 years ago

Hi David

That's a tricky one and up to you. I expect that the entire building is covered by insurance that you have in place, after all, it's your property that needs to be protected.

As long as the insurance is in place and covers water damage, then you can apply it here if you wish. If however, you wish to refuse the insurance benefit to the leaseholder because they owe you money, that is your decision. But remember, ultimately it is your property that is damaged here.

It's a bit like cutting your nose off to spite your face... Normally insurance is part of a management fee that all leaseholders are legally bound to pay by contract. If they refuse to pay, then you need to look to other legal recourse to sort that problem separately from insurance.

So, it's up to you... but make sure your insurance covers water damage in the first place!



Steven Burman

2 years ago


Jason's point is valid and it is ultimately your property that is being damaged. However, the leasee still has to live in the property and is obviously keen to get the damage put right.

Has the underlying cause of the water ingress been fixed? If so, this just leaves you with the issue of the consequential damage. If the only person now affected by the water ingress is the person asking you to put it right then you are in a strong position.

If my assumptions are correct I would be telling this person that you are not in a position to make a claim for the repairs until they have paid their outstanding share of the cost. Why should all the other lessees cover the cost only for this person to benefit?


Joe Bloggs

2 years ago

if you are unconditionally responsible for organising the insurance under the terms of the leases then that is what has to happen. and the insured can claim. recovery of payment of the premium is a separate matter.


2 years ago

Why was their share of the premium not paid? I would think that if they're reminded then they might well pay up as it show a lot of brass neck to expect to be able to claim under those circumstances

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