An MP has criticised a landlord for making its north London residents pay a terrorism insurance premium even though no such outrages have been committed in the area.
Walthamstow MP Stella Creasy has written to Freehold Managers Plc to highlight her concerns over complaints by the company’s leaseholders that they must pay an extra £68 because they live in Waltham Forest, the same locality as the three men who were convicted for involvement in the 2006 transatlantic airlines bomb plot.
As a condition of the freehold on the properties, the Labour MP said that the leaseholders must take out insurance policies with the group. Creasy described Freehold’s move as “extremely offensive”.
In an email seen by insurancetimes.co.uk, Helen Rosentreder, of Freehold’s insurance department, writes: “When these leases were written terrorism on mainland England was non-existent. In this day and age it is prudent for the landlord to cover any insured peril relevant to their portfolio. The Leasehold Valuation Tribunal in the past have confirmed that it is reasonable to include terrorism. This could not be deemed as mis-selling insurance.”
In the same email, Rosentreder cites press reports on the three Waltham Forest men who were involved in the 2006 bomb plot as proof that the area had a history of terrorist activity.
In a letter to Freehold Managers, Creasy writes : “The suggestion that the likelihood of further terrorism activities occurring in Walthamstow is such that additional premiums for buildings insurance are required is extremely offensive and unmerited.
“I believe this is both an unacceptable sleight on our local community and not an adequate basis on which to apply an additional cost to leaseholders.”
Creasy has also written to the Residential Property Tribunal Service asking them if the charge can be overturned.
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