Is apartment insured after winding-up?
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PROPERTY CLINIC: Q I am looking for some advice about a purchase of a property I made two years ago. It is an apartment in a block of three apartments; the other two are unoccupied at the moment and are only partly finished. This is in a mixed estate of apartments and houses where some are occupied and others are unfinished.
A recent event has left me with some concerns regarding the contracts that I signed.
The management company, X Ltd, which holds the block insurance for the apartment building in which I purchased, has wound up. At present there is no management company, and after speaking to the developer (also X Ltd) it looks as though he is not going to put a new one in place.
He has informed me that my block insurance is not affected by this as he has renewed the insurance through Y Insurance for the whole complex, and my bank is named on that insurance.
My worry here is that he is named on this insurance and not me – therefore, if a fire, for example, were to destroy my building, I would be relying on him and his insurance company to restore the building.
