How to resolve high building insurance costs dispute?

[appletreelincoln]

Hi, I have started here rather than finance or legal because I am trying to ascertain the best way move this process forward, along with if I have a case.

For the past 5 years I have paid building insurance to my landlord as per the terms of my lease. For the past 3 I have questioned the amount I pay, in writing, verbally and seeking quotes myself to compare.

I have paid between £2400 - £3000 every year. When I sought quotes they all came back under £700.

I requested the insurance details from the landlord which they have provided. The landlords insurance policy covers several buildings and what appears to be many other liabilities outside of what is required by the lease, many of which appear to me to be cover for their liabilities. Also, the sums insured are greater then the lease stipulates. They have stated they apportion the insurance between myself and the other tenants, previously based on size and now by the type of business and risk.

The quotes I obtained had the same building elements to the cover as the landlords insurance and everything required by the lease.

The latest schedule shows the landlords premium for this my building of £5126.30 for which I will be invoiced approximately £3000.

I have sought advice from surveyors and solicitors. Surveyors indicate I am paying an extortionate amount, solicitors that I appear to have a case.

I wrote again to my landlord and we had a meeting. They insist the insurance policy they have is appropriate and the apportionment is fair.

My lease states I will pay fair and reasonable sums that the landlord spends to insure the property.

My opinion/belief based the information I have found is I am paying in excess of what is fair under the terms of the lease.

What further steps can I take? Who can verify what portion of the insurance is fair?

Aside from the issue I confess I joined the site to seek advice and had not come across it before. I have been trading since 2008 and hopefully can learn a lot from the forum and maybe contribute a little.

 

[lockyer]

one of the issues is he will be insuring the property with the rest of his portfolio, and his claims history across the portfolio will be driving the premium. He will also be wanting to control the quality of insurer

 

[purely14]

Some friends of mines were in the same situation a couple of years ago on a coffee shop they run - they had meetings etc with the landlord and got a number of competitive quotes off their own back which were significantly cheaper than landlords cover. They even had to get an independant solicitor with experience of risk/insurance to write a letter to the landlord assuring them that the alternative quotes were of suitable quality.

Sadly I can't remember the exact outcome right now but will find out from them and report back

 

[appletreelincoln]

Thank you for the responses so far.

Whilst my issue is regarding cost it does not relate to finding the cheapest insurer.

The policy the landlord has taken out has cover that over estimates the rebuild and loss of rental amounts, I had this confirmed by a chartered surveyor. Has cover for deep frying, which we have never done. There is also both employer and public liability in the policy which is not required in the terms of the lease. They insist they have their own business insurance which covers their public and employer liabilities and we have our own business insurance which covers these liabilities.

The landlord also has a larger building occupied by a Chinese restaurant. The insurance shown for our building is over half the total premium yet the other building is more than twice the size and contains lots of heavy duty kitchen fryers and cookers.

The policy does not appear to be fair or fit for purpose and the amount we are being invoiced for is grossly above what insurers and surveyors inform us would be a usual amount for building insurance cover.

The landlords have still apportioned previous rent payments to the insurance amount I am disputing and are saying we are behind in rent payments. I now have a letter stating they want payment or a payment plan withing seven days of further action will be taken.

 

[lockyer]

does the Chinese restaurant adjoin your premises? if so the whole property will be rated on that basis as a fire could spread from them to you