Many Coach Houses may have garages on the ground floor, sometimes there is also an arch way for access into a communal court- yard. This concept of shared liability is blowing the minds of the insurers. To date, many insurance providers are refusing to cover these risks, and are not in the market for the business.
Many insurers are simply not quoting, and do not have a policy to suit this type of build, and although there is a few insurers who can insure these houses using a bespoke insurance policy writing service, they are choosing not to, by neither advertising their product or teaching call center staff about it.
The shared liability comes in the form of freehold and leasehold arrangements for the garages on the ground floor of the properties. The houses are in blocks of usually 3 properties, although this can be more, with a row of garages on the ground floor, owned on a freehold by one of the coach house owners. This is usually on a 999 year peppercorn lease to the other house owners. The liabilities are shared, disputable, and complex and this is causing insurers a headache! The owner of the freehold, is in effect – a landlord of the garages to the lease holders.
Coach House Insurance is low-cost, and as comprehensive as any other Home Buildings and Contents insurance policy. Part of the difficulty in finding Insurance, would be finding an insurance advisor that understands in full, what a coach house actually is, and how the free hold and lease hold agreements actually work. The insurance industry is slow to catch up with the house building companies who are racing ahead building large housing estates using this new space-saving concept, and that is causing coach house homeowners a problem.
Many mortgage companies will not transfer the funds at completion of the house sale without evidence that a buildings insurance policy is in place, and to find a policy specifying the liabilities of the garages and shared driveway space is time-consuming and tricky!
I am confident that in time, Coach House Insurance will become more readily available, and more insurance providers will look to create a policy to suit the shared liabilities, but until then, it looks as though home owners will need to invest lots more time in finding the right insurance policy for them! It is important to be correct with the freehold and leasehold information at quotation stage, and make sure the insurance provider is completely satisfied with the Coach House arrangement before you buy your policy – as this will guarantee your claims would be accepted and not rejected!
Source by Hayley Connolly