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Freehold insurance when flats are owner occupied leashold

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Author Topic: Freehold insurance when flats are owner occupied leashold  (Read 53 times)
Newbie
Posts: 2

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« on: June 29, 2020, 04:10:38 PM »

We have a very happy community here and the three leaseholders occupy each of the three flats.  The Freehold is held in a Limited management company jointly and equally owned by the three lease owners.  The property has a communal area that gives access to each flat and the outside rear patio.  The front has three parking spaces.  The property is c.1895 and was converted to it's present configuration in 2007.  The developer handed over the Freehold management company to the flat owners when the third flat was sold.  We inherited a Freehold insurance with a local broker who has given good service over the years but has increased costs dramatically in the last 2 years.  We don't seem to fit in the general Landlord insurance catagory and I would like suggestions, if any, on where I could look for alternate quotes on-line.
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« Reply #1 on: June 29, 2020, 04:57:14 PM »

I have the same situation... well, except it's four properties (and the happy community part)... just try a different Broker.

I use the chaps at Everett Mead... but that is not a recommendation... it's just a fact. The policy we inherited in 2015 was coming in at +900 per year... that Broker got it down to 786, then down as low as 538.23 the following year with a 1,000 Excess, in 2019 it was 577.05... get someone who'll give you options. We bounced between Aviva, NIG and RSA over the years... there really is no tangible benefit to loyalty... it's all about when your own laziness outweighs your desire to hold onto your money. At the very least you could ask your Broker to go back to the market and test it for you (it's not the Broker who's increased the costs, after all - their fee will be something, of course, but IPT has gone up in the meantime, plus you say "good service" which implies they've not done nothing - implying, therefore, you've made some claims). I wouldn't say my Broker has provided "good service", you see, because we made no claims... so there hasn't been any service per se.
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« Reply #2 on: June 29, 2020, 05:31:52 PM »

Thanks for the quick response.  I suspected as much (ie ask someone else). We have had a couple of insurers over the years, the broker actively looking for cheaper insurance without prompting. That's where the 'good service' comment originates.  We have also claimed a couple of times, once refused as 'wear and tear' rather than 'peril'.  No real complaint - other than the price rises. Renewal due soon and it will be interesting to see what this years demand is.
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« Reply #3 on: June 30, 2020, 09:50:22 AM »

Having claims easily explains the price rises... that's how it works (The House always wins)... and it's not a demand... it's a quote, you retain the option to not take it up. There's price rises generally, even if you don't claim - if you claim I think you can expect the "...has increased costs dramatically in the last 2 years" - and it's not the Broker increasing the costs, it's the Insurer (I'd expect you should be able to see from the quote their fee remains similar?). Anyway... for semi-complicated matters like this I reckon it's best to use a Broker. Rather than waiting for your 'demand' to come in... why not be proactive, and ask your current Broker to go back to market rather than just receiving a renewal from the existing Insurer (which is what they usually do)?
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