UK Landlord Forum / Life

Hi,

I'm new to all this and have this website to thank for giving me the confidence to give it a go....hadn't realised how frustrating even purchasing my first buy to let would be, but now that I'm nearly there (I collect the keys on Friday) 

I need some advice about insurance.

I have purchased a leasehold flat in a block of 6. I have contacted a couple of landlord insurance providers and had wildly varying quotes, but what's more confusing than any of this, is the issue of what buildings and contents cover actually is in relation to my flat.

The flat is leasehold, and as such the Freeholder insures the property for buildings, but this covers only the fabric of the building and the communal areas.

I am looking to insure all that falls within my responsibility....ie the entire contents of my flat.....against accidental damage such as a washing machine breaking and flooding the flat, and ruining the downstairs flat's ceiling in the process. Apparently that's covered by the contents insurance, but more worryingly, what isn't covered is any kind of leak in the water supply, the heating system or anything that starts with the words 'kitchen' or 'bathroom' or resides in those rooms!!!!

The contents cover provides for malicious damage by the tenants and accidental damage, but what if the tenant maliciously damages the bath? or accidentally lets the bath overflow? Apparently not covered under contents insurance as it is to do with the fixtures and fittings of the property and therefore covered by buildings insurance.

Similarly if the tenants burn a great hole in my work surface, damage the kitchen floor moving white goods about or cause a sink overflow from clogging the drains with lard....not covered because it's 'kitchen' and covered under buildings insurance.

It wouldn't be a problem at all if I could get buildings and contents insurance, I'd be paying for cover of some things that I'm not responsible for, but the peace of mind for the rest of the flat would surely be worth it....but because I'm a leaseholder I can't insure something that doesn't belong to me/I'm not responsible for, ie, the buildings.

How can I get insurance to suit my situation and cover what I need it to?

Seriously banging my head on the desk in frustration....and I can't afford to loose the brain cells!!!!!

Any help/advice would be most greatly appreciated.

Ok, so no one wants to have a crack at this? Lol
I'm still scouring the net for answers

It looks like I will have to take landlords insurance and then cover any other areas by insisting, as a condition of the lease, that the tenant takes out a 'tenant liability insurance' to cover them for any damage they do to the property. The water system and drainage will be covered by the freeholders insurance. Hopefully this belt and braces approach will work!

Have you tried actually speaking to an actual insurance broker or have you just gone online.  Bit of a rock and hard place by the sounds of it.  In general for Buildings and Contents insurance contents are everything you'd take if you move and building is everything you'd leave behind i.e the bath as you mentioned.

Have you inquired as to the level of cover provided by the block insurance?

Maybe you are being too "belt and braces"?

I let out a leasehold flat in a block as well... my insurance covers some of my contents and liability. It has other things listed (for which the excess is higher) covering water escape, subsidence. There's other stuff mentioned, but I can't recall it now... for me, the insurance is more of a tick in the box, because the last thing I want to be doing is actually claiming on the insurance. Right?

I don't believe the OFT think enforced insurance is a fair term and condition... so your Tenant might not be OK with that.

Quote from: OFTcompulsory insurance – we object in particular to terms requiring tenants to purchase specific insurance, or insurance provided by an insurer specified by the landlord or agent.

My insurance comes out at about £60. I have verified that a few other Landlords I know, owning property in the same block, are paying similar.

Thanks for the replies. Yes I do think I may have a problem with enforcing an insurance policy. And also if the tenant has done damage and disappeared I have to rely on them to claim to pay me back, which basically isn't going to happen.
I have contacted the Leasehold Officer at the council who is my Freeholder contact, but as yet I don't seem to be able to catch him in the office and he hasn't called me back.
I have spoken to every insurer I have had a quote from, they have all said the same.

The best price I have been quoted was £65 for the year, but again, just for the contents.

I'll see what the Freeholder says, hopefully that will shed some more light on the particular insurance crevice I appear to have wedged myself into! (Ignorance truly is bliss...until it all goes horribly wrong!)

I'd recommend just going with the cheapest quote that you can find. You can insure yourself to the hilt, whether you'll claim and whether they'll pay out is another matter entirely.

How much contents cover for that price you quote? Mine covers £5,000 only.

Failing just going with what you've found, call a[nother] Broker and explain what you want in further detail. Because I am letting to overseas students, my Broker told me it was more difficult to find some appropriate cover (not exactly sure why, really) but he was still back to me in 2 days with a recommendation. His commission is £10 (rather high as a percentage). Compared to your home, this is peanuts.

We might be very different kinds of people, surely we are, but I can't help reckon you're over-thinking this... a bit.

Bingo! Spoke to a letting agent today. They advised that I took out contents cover. They ask all their prospective tenants to make sure they take out tenants insurance and provide them with a copy of their cover note. Apparently as long as it's not in the agreement as a condition it's perfectly ok.
This means they protect their deposit and my fixtures and fittings are (relatively) protected too.