Ron

Member
Who insures the "shell" of an apartment block?
Hi

Could anyone advise on this. Our apartment is one of 12 in a block of apartments. I understand our home insurance and DASK only covers the internal structures. Intrasure have advised me that there should be a communal policy to cover the shell. But max value insurance will cover is £38k (rebuilding the apartment, not the block), we bought for £62k and now selling for considerably more. So my concern would be for the block/apartments to be rebuilt not to receive money. I find it odd that DASK is compulsory for apartment but again does not consider the shell of the building it is part of.

Probably not an issue for a co-operative build, but there must be loads of you out there in the same boat!!

Your advice would be welcome.

Thanks
Ron
 

Mr Turkey

Member
Who insures the "shell" of an apartment block?
Ron

My understanding goes like this. DASK is a compulsory earthquake insurance scheme. In the awful event of your place being flattened, the state contributes ( i think 60% anyone know the figure ? )to the rebuild cost of your property. This policy tops up their contribution. It is for rebuild costs only and should be regarded as an absolute minium level of cover, for that one scenario only.

As you are in a block, your insurance only covers your part. There maybe communal areas - stairs , landings etc that you have use of and access to, but they are not "yours". Clearly any policy could not rebuild the whole block - just your bit. For example your intasure policy will not include a communal pool .

The nightmare is when one person in the block doesn't get insurance. Today's policy document is tommorrow's lapsed premium. Cheery aren't I ?

To avoid arguements over liability and what's covered and what's not, the best route is to get an agent from an insurance company to quote for the whole site. This premium is then divided amongst the residents and added to the maintenance charges. The complex baskan is responsible for renewal /etc. This way the rebuild costs of the whole site are covered. You then take out contents cover as a seperate issue.

It sounds lovely in theory, but has little chance of success in practice !

Lastly, rebuild costs are considerably lower than market value, so that shouldnt be too far adrift from the figure you seem to be indicating. Best person to check with is your site builder!

Good luck

MR TURKEY
 

Ron

Member
Who insures the "shell" of an apartment block?
Thanks Mr Turkey

I think DASK contribution is set by the government and it is based on set value factor per sq metre / location.

Not much chance in getting the complex baskan to do it (unless there is 15% in it for them) and then probably all the apartment owners if they already have existing policies they are with different companies and renewal dates. As you say lovely theory.

Anyway thanks for your help, my apartment is on the top floor so little point in me insuring unless I know everyone else has. Guess I will start by trying get their contact details.

What about an empty apartment(s) in the block, is the builder obliged to have compulsory DASK?

Cheers
Ron
 

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