Hi.

When I bought the flat I let out it was let almost immediately. My letting agent told me, when the subject of insurance came up, that there was no need for buildings insurance on an individual flat in a house split into many flats. The owner of the block covered all eventualities with his insurance.

Within a year there was a minor catastrophe when my tenant flooded the flat below. Indeed it was bad enough to affect the flat 2 floors down. With the cost of renting humidifiers it all came to more fifteen hundred pounds. The cost was partly covered by the block's insurance and the rest was paid for by the block's management kitty, so it was equally shared by the eleven flat owners.

As a result of only having to pay my one-eleventh share I have (naively?) assumed that my letting agent was right and that there's no need for building insurance on an individual flat.

Have I been an idiot? If so, what sort of things do I need cover for?

Hi there,

This subject of insurance on blocks of flats is a very grey area. In theory the freeholder should buy the buildings insurance and recover that from the leaseholders in the maintenance costs. Some nasty, money grabbing freeholders deliberately inflate the cost of the insurance to get extra ££££'s out of the flat owners - so watch out for this.

You are paying for the insurance in your contributions and because of this incident you can expect them to go up next time - but also so will everyone else's.

Could you do more? - no not really on the insurance side as only 1 claim per disaster is allowed but you could instruct tenants on not doing whatever this one did and generally be more aware.

Don't worry it all equals out because if the roof leaks your flat will be first to suffer!

Mortitia

How did you know my flat was on the top floor? Just a good guess I suppose.

Fortunately there's no chance of the freeholder scamming the owners because I went to a Leasehold Valuation Tribunal and had the building taken away from his control and placed in the hands of manager independent of the freeholder.

So in one way I've been very on the ball but in another way - just taking the word of my letting agent that I didn't need my own Buildings Insurance - I've been very careless. But from what you say I'm ok on the insurance for the building as a whole.

Your lack of due diligence I'm afraid; not your agent's fault. Generally their guidance was correct, it's the freeholder who takes out the insurance. It's your responsibility to know what's in the Deeds of your property. I don't know of a buildings insurance policy available to leaseholders. Bit confused by why you think the flat isn't insured if the block is insured. Policies I know of include cover for the flats within, payment for which the owners contribute towards.

Doh - of course you have a top flat. Think about it - 11 in the block and your accident affected flats 2 floors down! They don't usually do flats in basements and sub-basements.

Mortitia

There is a flat in the basement.