Cross lease insurance

November 05 2014

The Memorandum of Lease states that you must keep your property insured at all times. You may insure your own flat independently or there may be an arrangement where all flats are insured under a single policy and the premium is shared. You must notify your insurer of any changes you make to the footprint of your flat. If your flat is damaged there’s likely to be an obligation for you to repair/rebuild your property to the original footprint before the damage occurred. There may also be a standard of repair that has to be met.

Often other interests will be in place on a cross lease title such as a bank as mortgagee; these parties may need to reach an agreement regarding settlement of your claim.

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