Do I have to pay buildings insurance twice?

  • Thread starter tazdustdevil
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tazdustdevil

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I have recently signed contracts on an new apartment development. My Apartment is estimated to be completed in December (although it may well be 1-2 months later). My loan approval has also come through. The Lender has made two conditions: 1) that I get my own separate buildings insurance i.e. separate to the buildings insurance paid for by property management fees and 2) that I get life insurance. I had anticipated the life insurance/ mortgage protection part but I cant believe they seem to be expecting me to pay buildings insurance twice.

Has anyone else experience/ knowledge of this? Is there any way round it?
 
Have you raised the matter with your solicitor?

Could it be the case that the block policy has been deemed inadequate by your lender, or your solicitor has not furnished them with an interest in same?

Haven't come across this before myself.
 
I would guess that it's a typo/error by the lender. You can't insure an individual apartment in a block. Check back with your lender/broker.

Sarah

www.rea.ie
 
Thanks for your replies. I had a quick word with my solicitor yesterday and his immediate reaction was that 'that cant be right' and you cant insure the 'building'/ structure of an individual apartment!
RELIEF
He says the builders lawyers will have to provide me with some kind of buildings insurance indemnity cert showing that the building/ block is covered for insurance purposes pre- the closing date. Apparently, reading the fine print of the loan approval special conditions, the lender can still decide they are not happy with the cover in the 12th hour but he thinks thats unlikely. So I think its the broker who must have been given inaccurate information. The underwriters had said they usually request the borrower get separate buildings insurance in apt complexes in case the management company goes bust and the premiums arent paid! Will keep working on it.
THANKS
 
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