Property management firm refusal to claim on block insurance?

Have you requested a copy of the insurance policy to check that the cover complies with all provisions in your lease? It’s not heard of that Man Coys get the cheapest to comply with the law but not the lease.
If the policy does not comply with your lease terms exactly then your block is not covered and the insurance company will not pay out and you need to find out why.

Just a query from someone with no experience of this situation at all, is your name and interest noted on the policy and may you be entitled to notify the insurers direct?
Notify them anyway? Insurers may wish to be told why the landlord has not told them? It's all premium sensitive.

You’re almost certainly entitled to notify the insurer directly and lodge a claim , if you pay service charges that include an element of cost for buildings insurance then you do t have to go through the management company . As a director myself representing the interests of the freeholder we instruct our management company to log all claims through ourselves as we want to limit the claims which in turn limits the premium increase next year , so I can understand why the management company is trying to put you off. However if the claim is under a £1000 I’d suggest you consider sorting it yourself for the greater good of all residents , we had two mammoth EOW claims for £100,000 each with o r flat being empty a year as a result our premium went up from £12k a year to £92,000 so each flat (46) now had to pay £2000 a year buildings ins - thd long and the short of it buildings insurance on flats is only there for major catastrophe , landlords and owners should not see it as. Way of refurbishing of repairing their flats if the claim in under £5000 as it’s detrimental to the following years premiums - same as cad insurance if you claim for minor petty things rather than just a total loss next year you’ll pay through the nose . Insurers (ours is Aviva) pit the premuims up to claw back what they have to pay out !!!!

Reply to the comment left by Blodwyn at 16/10/2023 - 17:37Also need any lender notified on the insurance policy

None of that is exactly true. Most policies no longer require the interests of individual lease holders or lenders to be noted on the policy (too much admin)

It is likely that any claim would need to be approved by the management company before the underwriter will process it.

There will be a policy excess and for escape of water in a large block of flats that could be £5k - £10k (more with a bad claims history). There is likely to be a clause in the lease making you responsible for any unrecovered sums on a claim (the policy excess)

Insurance is not a substitute for maintenance. You don't say what caused the leak but my guess would be an expansion vessel or flexi hose connector.

Expansion tanks should be serviced and pressure tested every 12 months in line with manufacturers recommendations. Flexi hoses have a life of 5 - 10 years. If the leak was as a result of failure to maintain, the manco may take the view they are not making a claim which will push up premiums for everyone.

There could even be something in the estate rules to the effect that properties must have the water switched off if vacant for more than 7 days (and the tanks drained if empty for 21 days)

Unfortunately most lessees don't read the small print until they have "an event"

The biggest "risk" to landlords in high rise buildings is not fire, it's water 😱

Hi,

Thanks for your feedback

I have had a copy of the insurance and now because of the delays it is now well over £5000. The issue has now been going on for more than a year so further complicates things!

I understand that premium will go up after a claim as I am a portfolio landlord. Unfortunately this particular management firm charges the most and is run for the maximum profit for them rather than the tennants welfare. They also from what I can see failed to carry out it's statutory actions so no one knows what's going on.

Steve

You have a statutory right to inspect the policy document and other related documents plus proof of payment of the premium.
You should contact the insurers for their advice.
If the man. Co or refuses to allow inspection, and they can apply fee for photocopies, then apply to the FTTribunal

Man co or man agent? The MA acts for the LL because the insurance premiums allowable cost to service charge. Is the Man Co acting on behalf of the LL? Or is the LL an external party to your lease?

Simple give them notice that you will take appropriate legal advice if not remedeed asap. I had a similar problem many years ago it took a year eventually settled out of court.

Daily Mail yday readers letters re transparency of service charge or lack of has template letter to send to LL and or MA