Money help desk: What's the best policy for my Georgian flat?

I HAVE had the most horrendous time finding insurance for my 1791 Georgian flat in a tenement.

I did have insurance via the old TSB; in fact it was forced upon me when I took out a mortgage with them. However, when I paid off my mortgage the TSB was mysteriously unable to insure the same flat; it was too old suddenly.

Many other companies took the same view, and all the good deals with joint buildings and contents insurance did not apply to my flat. So I now have my contents insured with Saga and my building with the Norwich Union.

The other problem I have is that I have a couple of tables worth about £10,000 each yet a lot of insurance companies have upper limits of around £1,500 per single item.

I shall retire shortly and be on an extremely small income. Should I forget special insurance for these items?

LR Edinburgh

Ian Crowder, insurance expert at the AA, writes:
AS A broker, the best quote we could find for this reader was £337.11 for buildings and £104.00 for contents.

It is true many insurers won't cover flats, tenements etc because of issues relating to shared responsibilities of common areas and cover of the entire building. In Scottish law, what an occupant is responsible for is clearly specified, whereas in England it is much more of a grey area. As a consequence, you will find some insurers won't cover flats in England but will do so in Scotland. In this particular case, we found only a quarter of our panel prepared to offer cover for your 18th-century tenement.

However, household names worth trying apart from the AA include Direct Line, Churchill, Saga, Legal & General, Norwich Union, HBOS insurance and Axa, who all say they insure tenements.

A joint policy isn't necessarily the cheapest option and as our reader has found, two separate providers cover contents and buildings may be the best option.

Turning to contents: many quality policies will protect valuable items without special underwriting provided they come within the overall sum insured. You need to check the small print before buying. At the AA, for example, an overall value of contents can be set by the customer up to £100,000. This will include antique furniture which is not necessarily regarded as 'works of art'. It will be important for such items to be independently valued for insurance purposes and the insurer told that some of the furniture is antique. It may be prudent for duplicate copies to be kept somewhere off the premises just in case. It would be worth photographing particularly good pieces such as paintings, rugs, furniture, etc. and keeping those pictures with the valuations. These will all help in the event of a total loss.

Should I make myself bankrupt?

I AM 73 years old and this is the first time in my life I have been in serious debt. The banks and different people have advised me to declare myself bankrupt. I have been to the Citizens Advice Bureau but they take forever.

Mr R (by e-mail)

Yvonne Gallacher, head of Money Advice Scotland, writes:
THE main thing is to seek advice and make an informed choice. Details of money advice agencies offering free advice are on www.moneyadvicescotland.org.uk or telephone [phone].

They will assist you with your debt situation by writing to your creditors, negotiating with them, and will look at your overall situation and ensure you are receiving all your benefit entitlement. If the best option is bankruptcy, or indeed another option, they should assist you to complete the necessary paperwork.

Without knowing details of the situation it is difficult to offer considered advice. However, before considering bankruptcy a full income and expenditure assessment has to be done and assets looked at, and overall situation considered.

If you own property, it may be that other alternatives, such as DAS which would protect your house if you keep up payments within the debt payment programme, or a Protected trust Deed, are more appropriate.

Get in touch

• E-mail questions to our panel of experts at [e-mail]. You can write to: Money Help Desk, Scotland on Sunday, 108 Holyrood Road, Edinburgh, EH8 8AS

• Readers are always advised to seek independent financial advice before taking action. Replies to readers' queries are offered strictly on the basis that no legal liability is created thereby.