RRO and Freehold Commercial Properties

[abi]

Does the RRO require that a freeholder of a commercial and residential premises MUST have building insurance? As a freeholder I appreciate you must have building insurance but does the RRO require this?
Thanks

[Chris Houston]

Abi,

(I presume that's your name and that you are not from the Association of British Insurers!)

I work in the insurance industry.  I am not aware of any legislation that requires building or contents insurance.  It is widely perceived as a wise move for anyone who can't afford to buy another building with the spare cash they have, but not required in law.  Banks, if lending money to buy a building, will often require insurance.  Shareholders would often expect their assets to be protected by insurance, but if you were a massive, cash rich organisation, who's buildings were well spread (not likely to be damaged in the same fire/flood/explosion/plane crash) who managed their risks excellently, you may "self-insure" or even no insure your buildings.  This is very rare however.

[Chris Houston]

I think the only insurance that is required by law is Employers Liability insurance.  3rd party motor insurance is almost required at law, but I think it can be avoided by depositing a cash bond with a court - not that I've ever known this to be done

[abi]

Thanks for feedback - simply a shop owner has no building insurance although he owns the freehold for the property. There is a flat above that the resident owns the freehold and for the sake of mortgage, building insurance too.
However as the shop below does not have building insurance it leaves the resident above vulnerable.
If the shop went up in flames and therefore the flat too, that would seem an insurance nightmare aside from everything else. Just wondered if the RRO would affect the need for the shop owner to have building insurance, who is otherwise reluctant to get it.

[Pip]

I think the flat owner would be able to claim off their own insurance anyway-or at least I hope so!Otherwise there would be a lot of nervouse householders wondering what insurance their neighbours had.