Leasehold buildings insurance

What is leasehold buildings insurance?

It’s a type of home insurance policy that covers leasehold property owners for any structural damage that happens to a building. You're a leasehold owner if you own a property that's leased from the owner of the land - also called the freeholder - for a set period of time.

It's important for a leaseholder to have this type of buildings insurance as unexpected events - such as a storm, flood or fire, or burst pipes - can happen. And if you're not already covered, you could find yourself having to pay a hefty bill.

Leasehold buildings and flats are common, more so in England and Wales. According to a report by the UK Government, there were 4.98 million leasehold properties in England on the Land Registry alone in 2023.

Can I insure a leasehold house?

Yes, we can compare quotes and offer you insurance if you own a leasehold house. Because these are single properties, it’s highly likely it’s your responsibility to get buildings insurance. You should check the terms of your lease first though.

Although less common, there were 1.4 million leasehold houses on the Land Registry throughout England in 2023, making up 30% of all leasehold properties according to a UK Government report.

What if I’ve bought or own a share of the freehold?

Flats that have been converted from original houses such as Georgian or Victorian buildings are mostly leasehold. But often the owners will own a share of the freehold, especially in England and Wales. The length of the lease in these cases can often be up to 999 years, so effectively it’s like owning a freehold property, especially when you have a share of it. You might also have the option to buy a share of the freehold with other owners in the same block.

In this situation it’s more than likely going to be your collective responsibility to insure the building, unless there's an external management company. It’s common in these types of buildings that all fees you pay to the management company contribute towards the buildings insurance and other costs. As it’s a more complicated arrangement, you may need a specialist company to insure a block of flats in a building.

As a leaseholder, do I need to get any other forms of insurance?

Besides buildings insurance, it's also worth considering contents insurance. Contents insurance isn't legally required, but it does help protect your belongings if they're ever damaged or stolen.

If you decide you want contents cover, make sure you don't under or overestimate the total value of your contents. If you get it wrong you could end up either not having enough cover for the costs to replace your items, or you could be paying too much.

You can work out the value of your contents using our contents calculator.

Buying buildings insurance along with contents insurance under a single policy might make it cheaper and easier to make a claim. But this is only relevant if you're able to buy buildings insurance for your leasehold property.

What if I think my freeholder is overcharging me for insurance?

If you feel you're being overcharged for buildings insurance, you have the legal right to ask the freeholder for a copy of the insurance policy. The copy must show:

• How much the building is insured for
• The name of the insurance provider
• The full policy details including what’s covered

If your freeholder doesn’t respond to your request or you think the charges are unreasonable, you have a right to challenge the cost through a tribunal. Before taking any action, talk to other flat owners in the building as the freeholder could be more willing to act if multiple owners make contact together.