Types of Leasehold Valuation Tribunal application (Wales)
Insurance through the landlord’s nominated insurer
These rights are set out in Section 164 of the Commonhold and Leasehold Reform Act 2002 and Paragraph 8 of the Schedule to the Landlord and Tenant Act 1985.
In some cases, the lease requires that the tenant insures the property, usually a house, through an insurer nominated or approved by the landlord. The tenant may consider that they can get cheaper insurance from different companies and may be concerned as to the cover provided.
The provisions of Section 164 of the Commonhold and Leasehold Reform Act 2002 provide a right for the tenant of a house to arrange their own insurance, provided they notify the landlord and comply with the requirement of the Section concerning the insurance cover provided. This right is set out in more detail in our guide to buildings insurance.
That is one approach to problems arising from ‘nominated insurer’ clauses, but there is an alternative right. The Schedule to the 1985 Act provides means for the tenant or the landlord of either a house or a flat to seek a determination from the LVT as to either:
- whether the insurance which is provided by the landlord’s nominated or approved insurer is unsatisfactory in any respect
- whether the premiums payable are excessive
No application can be made in respect of a matter which:
- has been agreed or admitted by the tenant
- has been the subject of a determination by a court or arbitral tribunal; or
- is to be referred to arbitration under an arbitration agreement to which the tenant is a party
The sort of issues that might be raised include:
- is the cover adequate or excessive?
- is the cover defective in any respect?
- is the insurer a competent and reputable company?
- is the premium reasonable value?
- can similar cover be obtained at a lower premium?
Unless the LVT finds the insurance arrangements satisfactory, it may make an order either:
- requiring the landlord to nominate the insurer specified in the order
- requiring the landlord to nominate another insurer which satisfies specific requirements set out in the order
- Last updated:
- 8 December 2020
- Next review:
- 18 December 2026