13 February 2012 |By insurancetimes.co.uk Newsdesk
Policyholders could be exposed to “significant financial loss”
The Building Cost Information Service (BCIS) has warned insurers that buildings insurance arranged for individual flats carries a significant risk of underinsurance.
Buildings insurance is commonly taken out on the whole block by the freeholder of the property and the premium split between the various leaseholders.
“In a total loss situation, policyholders may receive a payout far short of the market value of their flat but they would still need to continue to pay their mortgage.”
OCASO etc are our guests at the forthcoming April ILA meeting.