The owner or owner of a property is obliged to take out Building Insurance and requests a specific supplement to the Building Insurance Koetshuis – Owners Public Liability Insurance. The leaseholder is fully liable for all garages even though he only has access to them for himself. It is a rare occurrence, but in some cases the property owner does not have access to one of the garages – but even in this case he must insure it on behalf of the leaseholder.
The leasehold is usually a 999 year Peppercorn Lease and the deeds usually state that no leasehold is due. If desired, the Leaseholder can request a nominal contribution towards the costs of the Koetshuis Building Insurance. This would total about 20% of the total cost of the home insurance between all leaseholders. For example: If there are 2 garages in Leasehold, the owner can request 10% of the total Insurance Cost Coach House Buildings from each leaseholder – a total contribution of 20%. The percentage a freeholder can charge may vary slightly, but around 20% would be the norm. The freeholder should also be careful to exclude additional costs from the insurance when calculating this contribution – for example, the freeholder should not include their own contents insurance costs or Home Emergency Cover, but remember to include costs such as Insurance Premium Tax (IPT) on to take. that’s 6%. The insurer can help the policyholder to break down these costs.
Coach houses also require specific contents insurance, and this is something many people overlook, assuming they can have contents insurance, condo insurance is the most common mistake. This is not the case. If a leaseholder caused a fire that destroyed the building and its contents, an insurer would not pay to replace the contents of a coach house if the policy is for a flat. Coach house insurance for buildings and contents allows insured events by a leaseholder – non-coach house policies do not.
It is also beneficial to insure the contents and buildings on one policy – this would prevent 2 insurers, 2 claims and 2 deductibles in most claims scenarios. Most fires damage the building and its contents, most burglaries involve damage to the building as well as theft or damage to the contents, escaping water can destroy carpets (house contents insurance) and bring down ceilings!