Insurance
If you are an owner-occupier, you are responsible for insuring your own property. Most insurers make a distinction between Building insurance and Contents insurance.
If you have a mortgage, it is likely that your lender will insist that you have Buildings insurance that covers the full reinstatement value of the property. This is the cost of totally rebuilding the property and may be more than the market value of the property. Where there is a common interest in certain parts of the building, for example in a tenement, all owners are legally obliged to insure their properties for the full reinstatement value. Owners of properties in this type of building can meet their legal obligations by taking out a common insurance policy that covers the entire building. If you own a property in a building where there are common insurance liabilities, you are entitled to request (in writing) evidence that your fellow owners have adequate insurance policies. If they do not, you can enforce this obligation in the Sheriff Court.
Perth & Kinross Council tenants are not required to take out buildings insurance as the Council's insurance policy covers this. This also applies to Housing Association tenants although you may be required to insure the building if you are a Sharing Owner or if you purchased a share of a property through the Homestake scheme. If you are in doubt, you should check with the Housing Association that holds an interest in the property. Council and Housing Association tenants are however, responsible for insuring their own possessions that are contained within the home. An affordable home contents insurance scheme is available to tenants of Perth & Kinross Council.
If you have any concerns about insurance, you should seek professional or legal advice.
