Tenement Building Insurance Advise

[Madieracake]

Hi, does anyone know how they work out the rebuilding cost. I have recently purchased a 3 bed tenement flat just outside Glasgow. 1 of 6 flats in a 1900 purpose build flats. Each flat is around 120m2 I had a survey done which estimated the building insurance value as £260000. Building insurance is through a factor. I got a copy of the agreement and the building insurance value they are quoting per flat is £554000. So over £3 million for the block. Which seems crazy. I called this morning and the only answer they could give was they base the cost on the total rebuild as opposed to individual flats. This I understand but surely that doesn't equate to extra £280000 need of cover for each property. Any advise on how I can challenge this. I spoke to a neighbour who agreed it is outrageous. Factor is part of title deeds. Thanks

Yes, it’s based on a like for like rebuild. So if you’re in a sandstone tenement, it will be high. My Victorian house is worth about 250k, but the buildings insurance is for appx £1m. In contrast, when I lived in a new build, the buildings insurance was almost the same as the house value. The figure the factors have quoted (although I’ve never dealt with any decent factor!) is probably right.

Ok. Thanks for that. Not the answer I was hoping for but I suppose it does make sense. Think they residents now regret involving a factor with the insurance side of the agreement. Will still question it as still think the 3million to rebuild is high.

Be very very grateful that the insurance is organised by a factor!
If you organised it yourself then you would still have that rebuild cost, one person wouldn't pay and would be uninsured, all Hell let loose!
One tenament building in Glasgow is still under legal issue as it burnt down with only 7 of the eight with building insurance. Absolute nightmare.

I agree with PPs. Be glad you'll all be properly insured and have a factor to deal with all the flats.

My Victorian flat (part of a conversion) is also insured for £1m because of the materials and skills required to rebuild, which are far more expensive than a modern house.

Thanks everyone. Cricky I hadn't thought of that 7to25. Looks like this figure is correct then. Absolutely love this property so I will just have to accept it comes at a cost. Actually feel better knowing I am not being ripped off. 😘