Updating post from Reddit.
I recently acquired ownership of the freehold of my flat. The freehold is shared with the owner of the one other flat in the building, via a limited company of which we are both directors. What is the best way to take out building insurance for the building with our flats in it? I’m assuming it will have to be taken out in the name of the company, is that correct? Are there any good brokers/comparison websites that could help? TIA
Edited for clarity
FYI - I think your phrasing is incorrect, I imagine you mean: "The Freehold is owned via an LTD Company, both me and the other leaseholder in the building own the company".
You won't find any comparison websites for this, it's a niche area. You will need an insurance broker such as https://www.alanboswell.com/landlord-insurance/block-of-flats-insurance/
Typically, the LTD Company would take out the insurance. Then you and the other leaseholder would pay "service charges" to the company, to cover the insurance, build up a sinking fund for major repairs, cuminal area cleaning costs, cuminaal area lighting and comunial area deocration fund, legal fees, accountancy fees, etc..
The insurance would cover building insurance. If you're going to live there, you would probably want your own insurance on top for the contents in your name for your flat. Otherwise, it's up to the tenant to insure their belongings, etc.
Thank you - I have corrected the post (bit of a brain fart on my part!). Are there any particular brokers you or others would recommend? How do I choose one? I’m quite cautious about being ripped off…
The one linked would be able to help you, Alan Boswell is highly rated in the landlord community.
Don't forget essentially you are now jointly and severally in charge of the freehold building assuming both directors have equal shareholdings ..
Now the messy bit if you as freeholder were to under insure the building and the flats within it the Limited company has limited liability.. so risk passes back to the leaseholders ..
Have you agreed to a strategy with your fellow director for future service charges .. fulfilling the obligations of the lease .. building maintenance ..
There is quite a lot to get ones head around ..
.. there are only 2 flats ? .. one building ? .. 2 directors and the directors are the only shareholders ..?