Buildings Insurance for Leasehold Flats: What You Need to Know

Buildings insurance is one of the biggest single items in most service charges, and one of the most misunderstood. For leasehold flats it usually works very differently from a freehold house — and knowing how can save you money and stress.

Who arranges it?

For a block of flats, the buildings insurance is almost always arranged for the whole building by the freeholder, management company or managing agent, and paid for through the service charge. Individual leaseholders typically do not — and should not — insure the structure separately.

What it covers

• The structure of the building, including roof, walls and foundations.
• Communal areas such as hallways and stairwells.
• Often fixtures like fitted kitchens and bathrooms, depending on the policy.
• Usually not your personal contents — you need separate contents cover.

Why residents should see the policy

When the worst happens — a leak, a fire, storm damage — residents need the policy details fast. Yet in most blocks, the insurance certificate lives in one director's inbox or with the managing agent, and no one else can find it at 11pm on a Sunday.

Keep it where everyone can find it

Storing the current buildings insurance certificate in a shared document library means every resident can find the policy number and claims line when they need it. It is a small thing that makes a genuinely stressful situation much easier.