Leaseholder buildings insurance

If you’re a leaseholder, you might need buildings insurance. Read on to learn about leasehold insurance, what it covers and how to manage your rights and responsibilities.

What’s leasehold insurance?

Leasehold insurance is buildings insurance for people who own a leasehold property. It helps to make sure your investment in the property is protected if something happens to the building.

This insurance covers the cost of repairing any structural damage and it will also cover the full cost of rebuilding your home, should the worst happen.

As a leaseholder, having this type of insurance in place helps to cover the cost if you’re presented with a large service charge bill to pay for repairs to your building.

Buildings insurance

Do leaseholders need building insurance?

Taking out buildings insurance isn’t compulsory, but it might be a condition of your mortgage that you have a policy in place. The responsibilities also differ depending on whether you own a leasehold flat or house:

If you own a leasehold flat

When you’re a leaseholder of a flat your lease might stipulate that you have buildings insurance in place, although it’s typically something that the freeholder arranges.

If the freeholder is responsible for the buildings insurance, you’ll usually find a cost for this is included in your service charge.

It’s a good idea to check your lease, as this should explain how your property’s insured. You can also ask for a copy of the insurance policy so that you can see what’s covered.

If the freeholder isn’t responsible for the insurance, or if you share the freehold with other leaseholders, it’s best for all leaseholders to buy a policy together - this will make sure the whole building has the same level of cover.

If you own a leasehold house

Owning a leasehold house isn’t as common as being a flat leaseholder, but you’ll still need to make sure that you’ve got buildings insurance in place.

In this instance, the responsibility for taking out cover will usually lie with you, but again check your lease to make sure.

If you’re in any doubt, it’s always best to take out cover that you can cancel at a later date, rather than leaving yourself uninsured.

What does buildings insurance cover?

Buildings insurance covers the cost of repairing damage to the structure of your building as well as its permanent fixtures and fittings.

Most policies will protect your home against damage by:

  • Frozen or burst pipes
  • Fire and explosions
  • Floods and storms
  • Subsidence
  • Falling trees
  • Malicious damage

Because most leasehold properties are flats, your buildings insurance policy will usually cover communal areas, like hallways and landings, as well as any garden or outside area.

How much does building insurance cost?

This will vary depending on whether you’re insuring a house or a block of flats. And whether you’re paying for it directly or as part of your service charge.

The cost will also depend on other factors, like the area where you live and the size and rebuild value of the building.

To get the best deal and the right level of cover, it’s a good idea to shop around to compare policies and providers. You should also check the exclusions to understand what situations you won’t be covered for.

How do I get a quote?

Getting quotes for leasehold insurance is quick and easy, and comparing can save you money. To get you the most accurate quotes, we’ll need to know about:

  1. Your property

    Including whether it’s a leasehold flat or house, its size, age and where its located

  2. The rebuild cost of your property

    This is how much it would cost to rebuild your property from scratch, not its market value

  3. Previous claims

    You’ll need to tell us about any claims you’ve made on your home insurance in the last five years

  4. Security features

    If your property has smoke alarms, burglar alarms and other security features this may reduce the cost of your premium

  5. How close you live to water

    If you live in a flood-risk area you may need to give your insurer more information

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Buy home insurance with us and we’ll refund your excess if you make a claim. Excludes accidental loss and damage claims^

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^Up to £250 refunded after claim settled. Excludes accidental loss or damage claims. Full T&Cs apply.

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