Q&A:Q I've recently received a notification from the management agent of the apartment complex where I'm an owner-occupier in which I've been advised that "the existing block insurance policy with ***, from the policy renewal date, excludes cover for loss or damage caused by burst pipes. As previously stated, this exclusion is being applied by *** to all apartment block policies not just this one."
I have several questions: is it legal for an insurance company to modify the terms and conditions of a policy without the agreement of the policy holder? Should I have received advance notification of this change of cover from the management agent? Should I inform my mortgage provider that the terms of the block insurance have been changed? Should I take out my own private insurance to cover the shortcomings of the block insurance? Can you recommend the best source for professional advice on this matter?
AYou have many questions and we put them to the Irish Insurance Federation for advice. Taking your questions in order, it advises that, yes, an insurance company can alter the terms and conditions of a policy at renewal. As to whether you should have received notification, generally speaking, the chain of communication is that the insurance company liaises with the insurance broker who in turn liaises with the management agent. The management agent then liaises with the apartment owners. Yes, you should advise your mortgage provider. As to whether you can take out your own policy, the advice is that it is not generally possible to insure "the buildings" of one apartment within an apartment complex. The apartments are generally insured in a block under a common policy. The Irish Insurance Federation operates an information service for the public at 01-6761914 or by e-mail iis@iif.ie. In the meantime, seek clarification from the management company (of which you are a member) that the agent is shopping around for the best deal on your insurance.
Do I pay registration tax if I’m renting?
QI own a house in Navan, of which I was owner-occupier for three years until I could no longer take the commute to Dublin. The house is now rented out, and I am renting again in Dublin. This house is the only house I own. As I am not living in it, and am myself renting, do I have to pay the NPPR? If the answer is "no", then will I get a refund for the tax I paid last year?
AYes, you do have to pay the tax. The Navan house is no longer your principal private residence – your rental in Dublin is. Your confusion probably arises from the fact that this tax is often popularly referred to as a "second home tax" and you don't own two homes, but it's not that it relates to non principal private residences. The Navan house is now an investment property with all that entails: registering with PRTB, informing your lender (who may want to change the terms of your mortgage) and insurance company, paying tax on the rental income, etc.
Your questions
Send your queries to Property questions, The Irish Times, The Irish Times Building, 24-28 Tara Street, Dublin 2 or e-mail propertyquestions@irishtimes.com. This column is a readers’ service and is not intended to replace professional advice.
