Emyr Pierce

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Do I need buildings insurance in leasehold flat?

I have been living in a new build apartments complex for the last 12 months, but have just been told by one of my neighbours that I don’t need Buildings Insurance as that is covered by the Management Fee. Is that right?

It probably is. In a leasehold complex of multiple units, whether it be apartments or flats, the obligation to insure will remain with the Freeholder who also has the responsibility of maintaining the building.

The cost of this is distributed proportionately among the tenants via the service charge. The service charge will include those contributions towards maintenance, repair and shared utilities as well as a proportionate contribution towards the overall insurance premium for insuring the building. Each individual apartment owner need only insure their own contents, fixtures and fittings.

You should also ensure that your mortgage repayment does not include any building insurance premium as this is already covered by the landlord and payable by you in the service charge.

Home is now subsiding – despite a full survey

I have just discovered that the house I bought three years ago has subsidence. We had a full survey carried out before we bought and this was not spotted. I am insured but will have to pay a hefty excess for the repairs. Can I make a claim against anyone for this oversight?

You need to obtain an independent report from a Building Surveyor or Structural Engineer to establish whether or not the problem existed at the time you bought.

A building surveyor will advise as to whether or not your surveyor should have identified any tell-tale signs that should have been picked up in an ordinary Homebuyers or Structural Survey. If the Report is favourable, then you may have a claim against your surveyor for professional negligence.

You should seek the advice of a solicitor specialising in professional negligence who will advise you as to the procedures, the prospects of success and the evidence required to pursue a successful claim. You should also continue to investigate the possibility of the problem being covered by your Building’s Insurance Policy as this may be an easier and more direct way of recovering the cost of the remedial works.

In the event of a successful insurance claim, you may still have the right to claim any uninsured losses direct from your surveyor, such as any excess.