If you reside in a flat or a shared ownership house then, under the terms of your lease, Yorkshire Housing are responsible for ensuring that adequate buildings insurance cover is provided for your property.
In order to achieve value for money, we have engaged the services of an independent broker to provide cover through a recognised Insurance Company. Historically, leases for houses required the leaseholder to insure their property through an insurer either nominated or approved by the Landlord. In line with this, Yorkshire Housing has always provided Building Insurance for all its leasehold properties, with the annual premiums being paid back by the leaseholder through their service charge.
Under new provisions in the Commonhold and Leasehold Reform Act 2002 which have recently been introduced, the leaseholder of a house is now entitled to arrange their own insurance with an insurer of their choice, provided that notice is given to the landlord and that they comply with certain requirements relating to the cover arranged.
Process for Leaseholders taking up option of providing their own building insurance:
1. In order to take up the option of providing their own building insurance, leaseholders of houses should ensure that they meet the following requirements:
- Their choice of insurer must be an authorised insurer who is operating within the requirements of the Financial Services and Markets Act 2000
- The building insurance must cover the interests of both the leaseholder and the landlord
- The insurance cover must be a sum not less that the amount required under the lease, if applicable
- The insurance must cover all the risks which the lease requires to be covered by insurance, if applicable
- Leaseholders should refer to their leases to ensure that their insurance cover meets with the above requirements.
- Within 14 days of having placed their building insurance, or within 14 days of any request from Yorkshire Housing, leaseholders must provide a Notice of Cover to Yorkshire Housing.
2. The Notice of Cover must specify the following information:
- Name of the insurance company
- Address of the house insured
- Insurance policy number
- Period of cover
- Renewal date
- Frequency that premiums are payable
- Details of any excesses payable under the policy and what the excess applies to
- Risks covered by the policy
- Confirmation that the policy has been renewed
3. The lease holder must also provide a statement with the notice of cover that they are satisfied that the policy covers their interests and that they have no reason to believe that the policy does not also cover the interests of the Yorkshire Housing. The Insurance provided by Yorkshire Housing is automatically renewed each year on 1st April.