Buildings Insurance On A Leasehold House

Hi guys

I have recently just bought a 2 bed townhouse with a 123 year lease the house next door is freehold

The landlord has charged me 581 for buildings insurance which as an underwriter is extortion, this is IN ADDITION to maintenence and ground rent when I am happy with...

I have seen a copy of the invoice from the Insurers but I am assume that my house is just a little pawn on his landlord insurance policy and he may have split the premium between all his tenants at different locations.

Other insurers have quoted anything between £80 - £200.

As the tenant where do I legally stand ? Can the landlord charged what he likes or is he not allowed to make a profit from the inurance side of things and HAVE to charge theactual amount ?

Thanks and would appreciate any help ??

[jampot]

Surely the invoice details exactly what is insured, and possibly contains a policy number? I wonder if you can contact the insurers for confirmation of exactly what is covered, if the invoice isn't clear?

If the invoice just states "Buildings Insurance" I think you have every right to demand a proper policy breakdown. If each of his tenants are paying £581, yet his total bill for all properties is £581, he's onto a nice little earner...

Hi

What I meant to say was I have NOT seen the invoice for what he was billed as the annual premium but I HAVE seen and have a copy of the policy schedule.....I know what is covered and it is just basic £5m LOI but I want to see what he was billed by the Insurers

I have a copy of the cert and schedule confirming policy number and insurer details etc

But my question is If he was billed XXX amount and is billing every tenant a flat fee regardless of their property details and ends up may a nice little earner as you say ......Is he LEGALLY entitled to do this or should he bill each tenant for their worth ??

[jampot]

Can you not provide insurance yourself, then prove to the landlord that it is adequately covered?

If not, and your contract states that the landlord will provide (and pass on the cost for) buildings insurance, I can't see how he can get away with charging an amount which doesn't reflect the market cost of insuring the property.

Even if he ISN'T scamming you, he certainly isn't taking any steps to reduce your costs. It sounds a little like an unfair charge to me - he's asking you to pay a charge which doesn't reflect the true cost of providing the service...