Am I being ripped off by communal block insurance?

Am I being ripped off by communal block insurance?

0:01 AM, 2nd December 2024, About a month ago 12

Text Size

I have a two bedroom flat in a large Aberdeen development of 2/3/4 bedroom flats. I pay 0.89% of the annual policy premium. Smaller flats pay 0.61%. All fine as presumably my flat is dearer to reinstate if destroyed. I pay £700 per annum. Is that price fair or am I being ripped off?

I have not made any claims in 12 years, in contrast to the rest of the development which has seen high numbers of claims by individual flats for flooding/water leaks etc.

The deed of conditions (DOC), part of my title deeds states “the proprietors of each flat shall be bound to to concur with each other and with any manager or any factor in effecting a common insurance policy covering each flat, block common parts, mutual areas and car parking spaces”

This seems to make it clear that I cannot opt out and buy my own cheaper insurance. Has anyone seen any authority suggesting otherwise?

The size of the premium probably wasn’t helped by the fact that, when our factor was recently taken over by a new company, we discovered that a new policy had been arranged without consulting the owners. This is something we clearly need to address, given the “bound to concur” requirement in the Deed of Conditions.

Thanks,

Richard


Share This Article


Comments

Kizzie

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

10:13 AM, 7th December 2024, About a month ago

Reply to the comment left by Graham Bowcock at 02/12/2024 - 10:25
The freeholder or superior leaseholder of the block is the party in block insurance cover.
The reason why it’s a covenant or condition in the leases is that leaseholders hold the lease to their flat.
Leaseholders do not own their flats, but own the lease to a flat which comprise conditions for the right to live there.
LH should insure their contents against water damage etc.
Block insurance must comply with the leases and no insurer would agree to insure one flat in a block because as said the LH does not own the physical flat.

Badger

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

11:15 AM, 8th December 2024, About a month ago

I'd be interested to understand what level of commission was being paid to the factor.

In England at least they are required to disclose this but rarely do unless asked / forced to.

Not sure if the same applies in Scotland but I would be surprised if it did not.

The answer might be very illuminating.

Leave Comments

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

or

Don't have an account? Sign Up

Landlord Automated Assistant Read More