Tenement Insurance

Tenement Insurance for individual and blocks of flats
Tenement Insurance for Flats

Why Choose Highhouse Tenement Insurance

  • Instant no claims discount.
  • Individual or Block policies for tenement buildings.
  • Speak directly to UK staff – No automated phone service.

Tenement Buildings Flat Insurance

Depending on what the Title Deeds may say you need to take out insurance to protect your interest in the property that you own to protect the Mortgage Companies or your own investment. You will legally be required to insure your flat for the ‘Reinstatement Value’ this is to say the cost of rebuilding your property from scratch.

Generally the deed will require that you cover the structure that you are responsible for against standard perils such as Fire, Storm, Flood, Subsidence, Leaking water etc. You have a right to ask all the flat owners for proof of their insurance in writing and if evidence of insurance is not produced within 14 days you are able to take the flat owner to court.

So this is where potential problems can occur :

  1. What happens if not all of the flat owners have insurance?
  2. How will all the Insurance Companies deal with a large claim and communicate with each other?
  3.  What happens if a flat owners policy becomes void by the insurers due to a none disclose of a fact?
  4.  Who will be responsible for the cost of the reinstatement of the common parts?

These are all problems that could exist as a result of flat owners having, or not having! Separate insurance policies as if they are not properly insured there will not be adequate cover.

Whilst Block of Flats Insurance was not made a legal requirement following the Scottish Law Commissions report in March 2003, it is highly recommended that this Common Insurance is adopted in Tenement buildings for the ‘Reinstatement’ and not the ‘Market’ Value of the property (as with Category A, Category B and Category C properties it is likely that the cost to rebuild the property in the event of damage would be greater that the Market Value of the property. When purchasing a property the Mortgage Valuation will normally state the required rebuilding cost.

The Act bought with it other requirements and obligations on over 1.5m flat owners in Scotland:

  1. A duty to effect and keep in force an Insurance policy for named risks for the reinstatement value of the property that the owner is responsible for
  2. It suggested that a Common or Block policy would satisfy this
  3. If, for the reason of Location or Extreme cost of insuring a particular peril the act will allow for the owner not to insure for that reason or peril.
  4. The owner has a duty to provide evidence of insurance to other flat owners and ensure that payment for the policy should be no later than 14 days from the bill for the insurance being rendered

The requirement of a ‘Common Policy’ or Block of Flats Policy may be required under the title deeds and this may state how the cost of this policy should be split between the flat owners and should it not then the cost should be spread evenly in proportion to the size of the flat owned. You can see from this that this is a better way to insure a property.

Highhouse Insurance are able to offer both Individual or Block policies for tenement buildings and also for Category A, Category B and Category C Listed properties in Scotland.

We believe here at Highhouse you should only pay for the level of cover needed, our bespoke tenement insurance policies are designed to create an insurance policy using the highest level of cover at the most competitive rates.