Apartment block insurance lapsed

A friend is living in an apartment block and he received a letter from the management company stating that they are going to let the apartment block insurance lapse due to a significant rise in the premium.

I understand he cannot source his own insurance sufficient to cover just his own apartment, but can anyone outline what his options are? The management company are advising he contact his bank lender and inform them of the development which has him a little spooked.

Apparently the jump in the premium is due to the large number of water damage claims (many of the apartments suffer with damp despite the block only being four year old). Surely there is a case for action against the developer?

This is a very serious matter and should be attended to straight away.
It is a sign of bad deevelopment and bad management.

One of the main purposes of the Management Company is to effect Insurance. The Management Company in place should be voted out of office immediately, What happens if the place burns down or somebody has a serious accident or becomes electrocuted and no Insurance ?? If it is due to water leaks, there must be Insurance Company that would take on the risk with an overall excess on Water leaks.

Are the other owners of the apartments aware of this as th elenders for the properties will withdraw their lending with immediate effect.

That sounds mad, yes insurance premiums have increased but this is absolutely no reason to let the block policy lapse. Surely there is sufficient money collected in management fees to cover the premium? It should be in the lease and the memo & arts of the Management Company that they have ensure that the development is covered.

Is this the management company or Agents decision?
The agent should shop around to source a cheaper premium?

Or, is your friend in arrears with his management fee? if so the management company are within their rights to issue a letter saying that they are not obliged to cover the insurance for that particular unit. That usually comes as a last resort to get the person to pay.