Insurance
Last updated | 25/04/2007
As an owner-occupier, you are responsible for insuring your own property. If you have a mortgage, your lender will insist that you have buildings insurance which covers the full reinstatement value of the property. This is the cost of re-building the property from scratch and is likely to be higher than the market value. You should also insure the contents of your home although you are not legally obliged to do so.
Where there is a common interest in certain parts of the building, you and your fellow owners are legally obliged to insure their properties for their reinstatement values. The reinstatement value is the cost of re-bulding the entire property rather than just its market value which may be much lower. You and your fellow owners can also meet this obligation by taking out a common insurance policy that covers the entire building.
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 the Sheriff Court.
If you have any concerns about insurance, you should seek professional or legal advice.
