Q: I have had a request to supply a copy of the property insurance to agents acting for a leaseholder. They say “As we are the managing agent for our client we have a duty of care to ensure they have adequate cover. If you can’t release this information, would it be possible for you to advise if there is live cover for the building and when this is due to expire.”
This may seem to be a reasonable request but has not come from the leaseholder and seems to be a policy decision taken at the agents. If this was followed through we would have to supply copies of the policy to every agent and any updates and renewals which will be quite onerous.
The leaseholder receives copy of the certified accounts clearly showing that the insurance is paid. I have seen this once before and the agents backed down. It seems as if the agents are moving into management company business which clearly is not.
I wonder how they would react if I asked for copies of the tenant/leaseholders contents policy. (we have just had a fire the total repair cost will be in the region of £500,000. The cause was a mobile charger and the leaseholder concerned did not have contents cover).
Is this an overreaction on behalf of the agents?
Has this arisen elsewhere and what was the reaction?
FPRA Insurance Expert Belinda Thorpe replies:
A: It sounds like the agent requesting the buildings insurance copy is an agent for an individual leaseholder where the property is being let. If this is the case I would expect any reasonable letting agent to require this information for security for the safety of their tenant. We see this request on a regular basis.