Section 15 of the bill requires each owner in a tenement to insure their flat for reinstatement value, rather than just market value, against the list of risks to be prescribed by Scottish ministers. The bill currently provides that if the title deeds of the tenement require the tenement building to be insured by way of a common policy of insurance, that common policy must be used in order to satisfy the duty to insure under the bill.
Amendment 29 was prompted by discussion of section 15 by the Justice 2 Committee and, in particular, consideration of an amendment that was lodged at stage 2 by the committee's convener, Annabel Goldie. She wished to allow owners in a tenement to have the flexibility to use a combination of a common policy of insurance and individual policies, provided that the cumulative cover provided by all the policies covered the reinstatement value of the building. That would be the case in circumstances where the relevant title deeds required there to be a common insurance policy for the whole tenement.
The background to Annabel Goldie's amendment was that common policies are often stipulated in title deeds, but not necessarily for reinstatement value, and are therefore often supplemented by individual policies. I am led to believe that that is the case in the west of Scotland in particular, where properties are more commonly managed by a professional factor.
Amendment 29 would amend section 15(2) of the bill so that the requirement to insure would be fulfilled if the insurance cover were provided in whole or in part by a common policy of insurance. That would allow owners to have a combination of common and individual policies of insurance, regardless of whether the title deeds contained provision for a common policy. I hope that Annabel Goldie will feel able to support this change, because it gives effect to the purpose of the amendment that she lodged at stage 2.
I move amendment 29.