In the Leasehold Valuation Tribunal ( LVT ) case relating to a flat in London N11 on 3rd February 2009, the tribunal considered whether insurance premiums charged by the landlord were reasonable, even though the tenants had obtained significantly more competitive quotes – some being less than half the premiums invoiced by the landlord. No challenge was made by the landlord as to the quotes obtained by the leaseholders.
The LVT said: “The respondent is not acting unreasonably in insuring the premises as part of the landlord’s portfolio [of properties], when the premiums were tested for competitiveness each year. ” Cynics may well argue that in view of the significant difference between the quotes obtained by the leaseholders and the premium invoiced by the landlord, the landlord can hardly have tested these policies for competitiveness.
Perhaps in time the Leasehold Valuation Tribunal will further define the meaning of "testing" and the extent that a Landlord is obliged to compare prices.