Block policy in housing estate?

scdublin

Hi everyone,

Would appreciate any advice on the below as I'm due to sign contracts next week.

I am currently sale agreed on a house in an estate where the common areas of the estate are managed by a management company, and not the council. All households contribute a small fee annually to upkeep these areas.

The issue my solicitor has raised is that there's no block policy type insurance to cover any accidents happening on these areas, and that this is something I should be aware of.

Is this a common issue or something to be concerned about? I had thought a block policy was needed for apartment blocks but hadn't been aware this might be required in an estate?

Thanks in advance, Scdublin

Allinall

I'd be establishing who actually owns the common areas first.

Dav010

If there is an owners management company, which you mention in your op, as a unit owner, you are a member of that OMC and therefore should have gotten notice about the AGMs each year. Insurance costs are discussed at that meeting and included in the yearly subscription. If there is no insurance policy in place, and you are part of a MUD covered by the legislation, then it is a very serious issue and you personally could be liable as part of the OMC for any claims which arise relating to injuries suffered during your ownership.

You need to contact the managing agent immediately to confirm details of the insurance.

scdublin

Thanks for your replies, I'm confirming with my solicitor who legally owns the common areas.

Dav010, I haven't bought the property yet so I'm unsure about the AGM details. I'll find out the management company details and get in touch/ask my solicitor to get in touch.

Dav010

https://www.boards.ie/discussion/comment/121025718#Comment_121025718

Ah sorry, thought you are sake agreed to sell. I definitely would want to know where ownership of common area stands and whether there is insurance before buying. Really it is up to the seller to provide all this information.

NB, make sure your solicitor gets a letter from the MA confirming all subs are paid up to date.

scdublin

A few updates on the above.

The OMC owns the common area, and once buying the property I would be a member of the OMC.

There is some form of insurance in place but I need to determine exactly what that covers. From the below I'm not sure if it's just the mentioned parties that are essentially protected or if it means there would be coverage for the OMC overall in case of an accident in common areas etc.

"The insurance policy in place is for Directors & Officers. The level of insurance cover is agreed with the insurance broker and is considered by the directors to be sufficient".

I think I'll give the CCPC a call tomorrow for advice also.

Dav010

https://www.boards.ie/discussion/comment/121043426#Comment_121043426

I suspect that clause relates to indemnity for the directors/officers against claims brought against them personally as a result of their positions. What you are looking for is the public liability insurance for the areas other than inside your door/property boundary.

Where did you get the text you quoted from?

scdublin

https://www.boards.ie/discussion/comment/121043448#Comment_121043448

Yeah I'm afraid of that alright. My solicitor is following up with the solicitor for the OMC so fingers crossed there is something in place. Otherwise I'll have a very tough decision...

The text is from one of the documents my solicitor had sent me on, that I would guess the vendor's solicitor had provided from the OMC director(s).