Your PolicY
insuranceexcesses
In heritage flats largepolicyexcessesare commonplace. Theexcess(sometimes referred to as adeductible) is theamount thepolicyholderwillpay towardsany claim before theinsurer pays thebalance.
If youelect to carryalarge insuranceexcess then it is importanttoensureyourlease will supportthisdecision. Depending on thewordingofyourlease theexcess caneitherapply to theclaimantorcan be appliedtothe servicechargeaccount. If your leaseissilentonthe subject of insuranceexcessesyou need to be awarethathow youhandlethiscould be challenged and overruled by the LVT.
Largeexcessescan also have an impact when
sellingyourflat.The solicitoracting forapurchaser is boundbythe Councilof Mortgage Lenders’ handbook to refer to a mortgagelenderifthe insuranceexcess contribution fromanyflat is greaterthan £1,000.Where this is thecaseamortgage lendermayrefusetolendand this canhave an adverseeffect on themarketvalue of the flat.
Sometimeslarge insuranceexcessesare imposedbyinsurersbecauseofprevious claimsratherthanbeing adecisionbythe policyholder to reduce thepremium.Either way if your policy is the subject of a large policy excess then careful consideration needs to be given to howthis is paid.
Don’t Forget tHe obvious
Oneofthe dangerswhenarranging apolicy forheritageflatsisthatyou spendsomuch timefocusing on theheritageelement that youforgetthe basics.Typically youwillstill need to remember to consider such issues
as: nTerrorismInsurance nLift andCommunalBoilerStatutory
Inspection and Insurance nEmployers’ Liability nDirectorsand Officers Insurance nLegal Expenses
Whilst it is important to ensure you address thespecialist areasrelatingtoaheritage building youmustensureyou do notforget these.
8 Flat Living GUIDETO HeritageFlats
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