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Building Insurance hell!!

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  • Building Insurance hell!!

    Is there anyone who can help us - we are having some difficulties with the management company acting on behalf of the freeholder of the building of which we have the downstairs flat. The issue is regarding buidlings insurance. We have been paying a high premium for our half of the policy but to date have recieved no copy for two years despite requesting several times. We paid this years premium a few weeks late and now the management agent says that the policy no longer exists despite having cashed our cheque. He now tells us that there are technical difficulties because the tenant of the upstairs flat is in arrears and has not complied with paying several years premium (we have spoken to this tenant and he has his own insurance) According to the management company we will incurr the costs of the buildings insurance which he will recoup from us through an increase in service charges if he is unable to trace the other leaseholder (who is renting out the flat upstairs). The management comapany has also informed us that the cheque which he has cashed has been recognised as credit to ourselves which he is now implying that he will deduct any admin fees which includes any telephone conversations we have with him or letters regarding this matter - he tells us he charges £200 per hour for his time. Can he get away with this? Does anyone know the legalities of this matter as we are really confused. We want to sell so would rather not go through a protracted legal process with the leasehold valuation tribunal.

  • #2
    I'd speak to a solicitor if I were you - personally, I can't see grounds for the management company to cash a cheque intended for a specific purpose simply to apply as a credit, unless it's implicitly stated in their terms that this applies. I would also ask regarding the buildings insurance already paid for but no proof provided of service delivered.