Share of Freehold building insurance?

Share of Freehold building insurance?

by Readers Question

Guest Author

15:05 PM, 5th September 2018, About 6 years ago 22

Text Size

I am the owner of a flat (1 of 4 in a converted house). Each of the owners is also a freeholder.

Recently one of the flat owners decided he no longer wants to contribute to the whole buildings insurance and would like to do his own insurance (for his flat only)!

If he does that then the remaining 3 owners will have to pay extra or if everyone does their own insurance the communal areas won’t be covered.

Has anyone been in this situation before and could offer some advise?

Many thanks


Share This Article


Danny 10

2:42 AM, 7th September 2018, About 6 years ago

Nick Im sorry to hear that this is the case with such a small building, it's a pity that 4 owners can't agree on something so small and simple, not to mention essential.
I am not going to say this, as I hate to hear this given as advice...." You really need to speak to a solicitor", nonsense. Apart from it being costly it is sometimes unnecessary.
So first step, I d say is do your homework, Lease Advisory as Neil Patterson did mention are very good. That's their sole purpose and on behalf of HM Govt. Next I d send a simple short email to 3-4 Freehold Leasehold specialist law firms, I find Helix Law in Brighton and Eastbourne to be very good, just 'Google' you ll find a fair few out there;- Brady Co. Nottingham, another Monarch in Manchester. White Collar Law Advisors Liverpool. They ll give you a brief summary of what's what initially free advice. Then compare the various ones and draw a conclusion for yourself.
Next step armed with the info from the above parties, pull everyone together to have an informal meeting and speak together.... After all its for everyone's benefit.
Perhaps in the meantime this article might catch the eye of a few very knowledgeable and experienced Forum Members in Iain Narbarth, Trevor White and who ll give you some solid advice.
But from my experience you have to snip this descent in the bud, asap. Try get a good consensus and full support from the other Co owners, preferable a tight contract drawn up on your lease where service charges or a sink fund is required. Next get a RTM set up a Property Management Co. but do it yourselves.
Good luck Nick and keep us posted yeah.

Michael Barnes

19:56 PM, 7th September 2018, About 6 years ago

Reply to the comment left by Nick Farrell at 06/09/2018 - 14:14
"I recently purchased this property"

What does your conveyancer say about this situation and about why it was not identified during the buying process?


9:03 AM, 9th September 2018, About 6 years ago

I have a flat in a block of 4 and have had exactly this situation, please see my earlier post. It's not practical to form a limited company for only 4 and won't solve the problem. There is no real issue here. If the dissenting owner wants to use another insurer, why not get their details and all go with that one? Or as I said earlier just insure the other three together or even all separately. The only problem with that is that if there is a claim, you'll have more than one to make although a decent insurer will deal with the other company for you once the initial approach has been made. Speak to the other owner first and find out why s/he wants to do this. Also speak to the company they want to use as well as your own. You do not need to go to a solicitor. A joint policy is sensible but not essential and you don't have to cover the fourth person. You can insist on seeing their policy since their insurance could affect your property.

Danny 10

9:48 AM, 9th September 2018, About 6 years ago

Yeah that seems another way of doing things and possibly more simple. Hope it works.
Puzzler, please can I ask just out of interest and curiosity, in such a case as you and Nick have. Who pays for communal cleaning, lighting, general maintenance and if ever major maintenance us required? If its adhoc/informal and no means of enforcement what then?


12:51 PM, 9th September 2018, About 6 years ago

Reply to the comment left by Danny 10 at 09/09/2018 - 09:48
That indeed is the $64,000 question. My block is purpose built two-storey of four one-bedroom flats. We have no formal arrangement which does not always work well. Previously we all just pitched in with one of us arranging stuff and the rest paying our share. Unfortunately now we have one who is quite difficult to engage with (although they do collaborate on the insurance, mainly because it's cheaper that way) so I just do it myself. We have not had any major expense but should it be required the lease is quite clear that costs should be shared equally. Also on sale the title to the freehold changes so when sold I'm hoping to recover funds then (although I've not looked into that in any depth).

Danny 10

13:16 PM, 9th September 2018, About 6 years ago

Reply to the comment left by Puzzler at 09/09/2018 - 12:51
Thank you for the off topic response, I hope that this arrangement continues to be cordial and acceptable to all involved. Cheers.

Seething Landlord

13:37 PM, 9th September 2018, About 6 years ago

The following link is to an article that might be helpful:

Rob Crawford

13:59 PM, 9th September 2018, About 6 years ago

Hi Nick, what is missing is an understanding as to why this individual does not want to contribute to the same building insurance cover. Surely, a block cover split four ways is cheaper than a single apartment? Also, I suspect that the shared areas would not be included in an individual apartment policy, he/she still needs to contribute to this.

Danny 10

14:15 PM, 9th September 2018, About 6 years ago

Reply to the comment left by Rob Crawford at 09/09/2018 - 13:59Rob and all the others whom have contributed to Nick's post, I d be really grateful of some input and advice to my similar or 'Freehold Insurance' related query. As I ve paid but my landlord/freeholder can't or won't produce the policy documents. Local Authority sits by as freehold co. breaks law and LTA?


16:22 PM, 9th September 2018, About 6 years ago

I have already given advice on this in my previous comment and it is just choosing an insurer that covers individual flats.

Please note that although, I have given advice, it is not expert advice and only worked for me.

Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership


Don't have an account? Sign Up

Landlord Tax Planning Book Now