Small block of 6 flats with no block policy insurance?

Hi Sash

It is the freeholders responsibility. He’s not doing you a favour, he’s doing what he needs to protect his property – and yours.

Hi Jason

The freeholder seems powerless unless the leaseholders agree. The free holder has tried several times writing to the leaseholders to get the agreement since the lease needs to be amended accordingly but amazing all the other three leaseholders refused.

The freeholder even sent my letter (which detailed the risks involved) to the leaseholder. My only option is to write a personal letter to the leaseholders and hope common sense prevails. I cannot see any argument not having the freeholder cover the insurance especially there is no additional costs (apart from the lease amendment).

If something does happen having four insurance companies trying to deal with each other will just mean long long delays and ultimately risk losing the flat.

Thanks

This insurance situation is not uncommon with maisonettes or when old houses are converted into flats.
It is likely that buyers’ solicitors will be unhappy, as mortgage lenders will normally want reassurance that the whole building is insured under a single policy.
However the answer to the problem will probably be for you to pay the premium for a Contingent Buildings Insurance legal indemnity policy. Such a policy provides cover when any part of the building of which the flat forms part is damaged by an insured event but the freeholder or another lessee has failed to insure entirely or for an adequate amount.
These indemnity insurance policies are normally arranged through solicitors and they should be able to get a quote for you. But you don’t need to pay anything until you have a buyer and their solicitors raise the point – they might not!
You could check whether your solicitors arranged such a policy when you bought your property – if so then it could be passed on to the buyer (but a top-up premium may be payable.)

I have a flat in a shared freehold block of 4 and it was no problem to get insurance individually. The lender doesn’t require insurance in place until exchange. We subsequently decided to club together and get a joint policy which would seem a sensible plan. You need to talk to other leaseholders and find out what their problem is, perhaps they don’t trust the freeholder?

Reply to the comment left by “Tony Lilleystone” at “26/04/2016 – 17:31“:

Hi Tony

This is quite interesting point. I vaguely remember something about the indemnity policy when I brought the property so will have to look into it. If there isn’t one in place how do you get one ?

Thanks

Sash