Sight of the Policy
Leaseholders have rights to information about the insurance in addition to being able to challenge its reasonableness. Under s30a of the Landlord and Tenant Act 1985 (rights of tenants with respect to insurance) any leaseholders paying a service charge which includes an amount payable either directly (or indirectly) for buildings insurance, under the Schedule to this section can request (in writing) a summary of the current insurance policy. They are entitled to see the policy and any associated documents and If they are members of a recognised Residents Association, the Secretary can request it on their behalf. The summary must show:
- The amount for which the property is insured;
- The name of the insurer;
- The risks that the policy insures against.
Within 6 months of receiving the summary, leaseholders (or the Secretary) may request that the managing parties arrange access to where the policy is held where they can a) inspect the full policy and associated documents, such as proof of payment and b) take copies and extracts. Compliance is required within 21 days from the day on which the notice is received.
Alternatively leaseholders can request (in writing) for them to be sent to them or to be made available for collection. It should be noted that if this option is taken then a ‘reasonable’ fee can be charged under administration charges but they cannot charge for the inspection of the documentation.
The policy holder must respond within 21 days of receipt of the request.