Do I need to insure my leasehold flat?
(Last Updated: 29/05/2024)
02/06/2023
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The Leasehold and Freehold Reform Act 2024 was passed on the 24th May 2024, but is not yet in effect and the date for this is not yet clear. We will update our content as and when the finalised legislation is published. Read more - Expected changes
The obligation to insure your leasehold flat for building insurance sits with the freeholder, however, you are liable to pay for your share of the cost for this. The cost is split between all of the leaseholds in the flat and is normally paid annually.
So...do I need to insure my leasehold flat?
Whilst the freeholder organises the buildings insurance, depending on their policy, there are parts of your leasehold which you still need to insure such as your personal possessions or internal damage.
Some building insurance policies don't cover all of your leasehold flat, as the policy covers damage to the building not to what is fixed to it. For example:
Does the insurance cover a bathe overflowing?
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Covered by building insurance
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Not covered by building insurance
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The above table is just an indication and you should read the inclusions and exclusions contained within the Building Insurance policy for your own leasehold flat.
Get a copy of your building insurance
You need to know what your building insurance covers and what is excluded. During the conveyancing, you need to get a copy of the policy and read through it. You solicitor should request a copy from the seller's solicitor.
If you already live in the property, then you can ask your freeholder/managing agent to provide you with the current policy and then you can decide what insurance you need for a leasehold flat.
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Written by:
Andrew Boast
Andrew started his career in 2000 working within conveyancing solicitor firms and grew hands-on knowledge of a wide variety of conveyancing challenges and solutions. After helping in excess of 50,000 clients in his career, he uses all this experience within his article writing for SAM, mainstream media and his self published book How to Buy a House Without Killing Anyone.
Reviewed by:
Caragh Bailey
Caragh is an excellent writer and copy editor of books, news articles and editorials. She has written extensively for SAM for a variety of conveyancing, survey, property law and mortgage-related articles.
