Building Insurance Problem

[WhichFindaGenral]

If someone pays for the insurance to a building they don't actually own, but is part of a group of buildings he does partially own under one business, what happens to the money in the event of that particular building being damaged or even burning down completely?
Who gets the pay out - the person who pays the insurance or the actual owner of the building?

would the person who paid the insurance be able to just get a pay out & refuse to give it to the owner or refuse to pay for repairs etc.?

its a long complex situation as follows -
parents own 7 buildings - some are houses, some a shop with accommodation above.
2 daughters, 1 son.
Originally they were to be left in the will 2 each for daughter, 3 for son in the form of one large property, because he was oldest & had worked alongside father in the shops.

1 already 'belongs' to a daughter because she lives in it , but is not yet in her name, it is still in the parents name & is promised to her in the will.
The tiny shop is unused & boarded up.

all the properties were insured for many years – possibly all together in a sort of group business policy under the parents business names? (is this a thing? Or must each property have its own policy & be assessed individually?)

Parents get old & retire. Son 'sort of' takes over.
he purchases some of the buildings for a small amount & does them up.
father died, remaining properties passed to mother.
daughters property is still hers in the will.
Now the son still pays the lump sum insurance for all the properties, including the one daughter lives in.

The assumption is that when mother dies, the remaining properties will be split between the children but that the insurance will still be paid for all by the brother, unless other arrangements are made
This is an unofficial plan by parents because they assume brother will look after everything when they've passed on & the fact that they sold him the buildings very cheap.
Daughter is disabled & cannot work so cannot take over the insurance payment.

Brother is a dodgy horrible bully & wants nothing more than to get all the properties for himself & wants the daughters to have nothing – but he hides that well from the mother.
Mother believes him so wont do anything or discuss it.

He also would never ever do anything that cost him money, if he didn’t need to or for anyone else’s benefit, so its curious he’d insure a house for someone he’s spent years trying to get out the house.
Its assumed he does it because it gives him some sort of lower costs for all the other places, so its a benefit for him to keep them all together.

The worry is, when mother is gone, if something happens to daughters home, will the money go towards fixing it or can he just say nope & keep it?
The further worry is that he could even do something to force daughter out of the house by making it unable to be lived in & ensuring she has no way to pay for it to be fixed, meaning he gets the payout & keeps it.

the house is old & in a state already, needs work doing but its liveable if it stays as it is.

Can anyone help? None of us have a clue about this sort of thing, & its not something that is easy to google, its just a baffling headache.
How can it be checked out, or enforced, or anything that can be done now & later to ensure he doesn’t get away with anything

Many thanks

[newmodarmy]

Far too complicated for me to struggle through, but the question is best asked to the insurer. 

[Maydup]

Far too complicated for me too, but an insurer will pay the policy holder. Whoever took out the policy and who's name is on the insurance certificate. 

[Maydup]

I have read your post more thoroughly now and it's important to ensure mother's will is really clear. Then when she passes, whoever owns the properties can take full control of them. The brother can be told no need to insure this one, it's mine and I'll do it myself thank you.

[Maydup]

Also from experience, I do know that the insurance company only pay out on receipt of evidence that the work is complete and copies of all builders quotes and documents.

[bednobs]

you can only insurean asset you have an insurable interest in can't you?

[bednobs]

and therefore only the current owner or someone who has a mortgage on said building can insure it. Planning to own something after a person has died does not count.  The mum could change her will, need expensive care etc.  I found it difficult to follow who the owners are now, but if it's not the mum she cant leave it in a will anyway

[Peter Pedant]

Whoever the freehold title holder is: should insure it in their name. You cd pay thepremium

The houses are allocated on your mothers death- so the disabled on willl get her own house to live in but will have to maintain it.

If yours is anything like mine - on your mothers death - at least one sib ( probably two or three) will scream scream scream and say they want their money NOW

and if the will is unclear they can force a sale - but  if the will is clear bout who gets what, then they take their share.

happens every day

house falling down is NOT a reason to claim on  insurance

Now if there are seven properties - even at £50 000 each and it is far more likely to be 100k, the insurance premium is around 1k-2k and shojld be charged against those taking  a rent - and in a grroup value of £500k, agonising about £1-2k is a waste of time.

Make sure the will is clear 

[Henry1865]

An insurance company would not necessarily pay money to the policyholder. It would be directed towards the builder.