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Ash
Ash, Solicitor
Category: Property Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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We are the management company for three apartment buildings

Resolved Question:

We are the management company for three apartment buildings and the letting agent for many of the apartments.
We used to arrange the insurance for all three buildings and it was about £3000 for each building.
They all now have a new freehold owner and the lease stipulates that they will arrange the insurance.
The insurance is now around 30-40% more for the same cover, we have checked with our previous broker using the current schedule to ensure a like for like quote.
Is it possible for us to ask them to find cheaper insurance, how would we word the request.
We don't want to cause problems between the freeholder and the leaseholders but we do have to try to cut their costs if possible.
Submitted: 3 years ago.
Category: Property Law
Expert:  Ash replied 3 years ago.
Alex Watts : Hello my name is ***** ***** I will help you with this.
Alex Watts : Can you confirm whether the lease does say they will arrange cover?
Alex Watts : Is your cover different fromthe
Alex Watts : Is your cover different from the one proposed by the freeholder please?
Customer:

Yes the lease does say that they will arrange the cover.

Customer:

Our quote was made using the schedule provided by the freeholders insurance company so it is like for like and even includes terrorist cover as there are some parts of one of the buildings which are commercial

Alex Watts : Ok. How many years have you arranged own cover for?
Customer:

we had been using the same broker for six years, so they know the buildings very well, this is the first year that the new freeholder has arranged the insurance

Alex Watts : Ok. How many years in total for own insurance x6 or more?
Customer:

Just six years

Alex Watts : Ok. The landlord has a duty to be cover at the best price. If you have been given a quote from a broker for cover and the landlord is more expensive you don't have to take it.
Alex Watts : The fact is that you have been arranging your own cover which has been acceptable to the landlord.
Alex Watts : Now the landlord does not want you to sue it but wants to in effect hike the price.
Alex Watts : This is not acceptable. You should write to the landlord and set out your position and say unless they accept your insurance you will seek a declaration from court.
Alex Watts : If he refuses then you can issue proceedings, you would need to complete form n208
Alex Watts : http://hmctsformfinder.justice.gov.uk/courtfinder/forms/n208-eng.pdf
Alex Watts : The court will list the matter for hearing and decide whether or not to declare that your insurance can be used.
Alex Watts : Can I clarify anything for you about this today please?
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