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Joshua
Joshua, Lawyer
Category: Law
Satisfied Customers: 29197
Experience:  LL.B (Hons), Higher Prof. Dip. Law & Practice
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I am paying £2800 per annum for building insurance, a rise

Customer Question

I am paying £2800 per annum for building insurance , a rise of £400 from last year. I have a leasehold property.....How can I reduce this as it seems very high
JA: What steps have you taken so far? Have you prepared or filed any paperwork?
Customer: We initially signed when we bought the property which included this building insurance
JA: Where is the leasehold located?
Customer: Hertfordshire
JA: Is there anything else the Lawyer should know before I connect you? Rest assured that they'll be able to help you.
Customer: no
Submitted: 11 days ago.
Category: Law
Expert:  Joshua replied 11 days ago.

Hello and thank you for your question. My name is ***** ***** I will be very pleased to assist you. I'm a practising lawyer in England with over 15 years’ experience. Please be aware that although I will endeavour to reply to you promptly, I am also in full time private practice and so I may not be available to respond immediately and it may also take me a few minutes to prepare a reply. The site will notify you as soon as I respond. I look forward to working with you to answer your question fully.

  1. May I confirm if this is a residential or commercial premises please?
  2. are you paying as a leaseholder to a landlord and if so, is the figure you quote a percentage of the buildings insurance pay jointly with one or more other leaseholders or are you the freeholder of the premises?
Customer: replied 11 days ago.
Residential. Paying to the landlord
Expert:  Joshua replied 11 days ago.
  1. is the figure you quote a percentage of the buildings insurance pay jointly with one or more other leaseholders?
  2. have you obtained any comparative quotes to ascertain whether the figure is disproportionate to the market rates available?
  3. if so, have you enquired with the landlord why the premium appears so much higher than premiums available on the market?
  4. Are there any fire issues at the property, in particular I'm thinking of cladding, which is pushing the premium higher?
Expert:  Joshua replied 11 days ago.

I'm following up on the above. Without some further information from you as above, I am limited in what I can say on the matter but in the hope it is helpful nonetheless, I will provide you with the following broad answer. If you are able to kindly provide me with the above further information or if you have any further questions generally, I will be delighted to expand on the following - please just reply back to me in this case:

Notwithstanding the above, in general terms the first thing to look out would be the terms of the lease to see what insurance the landlord is required to provide and compare this to the policy that he is actually providing. If he is over insuring the risks not set out in the lease then he will not be able to recover the elements of the premium that represent risks which do not need to be insured.

In terms of the premium generally, you can require detailed information in relation to the premium by serving a s21 and s22 notice on the landlord demanding information to the extent you not already have the information you require. If you have evidence that policies covering the risks required in the lease can be obtained at a substantially lower amount that the landlord is paying, then you can challenge the reasonableness of the insurance premium the landlord is seeking to pass on.

https://www.gov.uk/government/publications/form-leasehold-3-application-for-a-determination-of-liability-to-pay-and-reasonableness-of-service-charges

I do not suggest this is what is happening here but it has certainly been known for landlords in the past to enter into arrangements with insurance brokers whereby significant sums are paid by the broker is commissioned to the landlord in relation to a particular policy introduction which means that a significant proportion of the premium the tenants are paying is effectively to cover the landlord's commission payments. It would be important in particular to establish that this is not what is occurring in this case

I hope the above is of some assistance but if you have any further questions, please revert to me

Expert:  Joshua replied 11 days ago.

I hope the above answers all your questions. If there is anything else I can help with please reply back to me otherwise thank you very much for visiting JustAnswer and I hope we will see you again in the future.