Please can someone explain to me why we need building insurance for our own apartment?? I can understand content insurance and life/mortgage cover insurance.
Building insurance for apartment seems useless. The apartment structure - walls, ceilings, floors are dependant on the whole building - any claim to the building whether to communial or structure within individual apartment block would need to be covered as a whole. Surely building insurance needs to cover whole block and distributed equal share between all apartments within that block and thus within management fee..
An example: We had an apartment here in UK we had no individual apartment building insurance. However the management company (comprising all owners of each apartment within block) had building insurance for the building, ie: to cover cost of rebuild (should this be necessary) coverred all communal aspects (ie leakage in waste water pipe runing through apartments) roof damage structural problems etc etc. Cover of £1M (can't remember premium we paid) - cost of cover distributed to all apartment owners within monthly management fee.
Please explain why separate building insurance for each department is required?? If we do need it what does it cover ??
Also with regard to freehold/leasehold - do all apartment owners own an equal share of the freehold (if so what does it include, ie land apartment block on and how much of surrounding land, ie pools, golf course etc). Or is the land never ours and therefore leasehold?
An example: Again, our apartment was freehold. Each apartment owner had an idential share of the freehold on land and apartment block. It was not leasehold as so many apartments are.Hope this makes interesting reading and await your thoughs and clarity????