Freeholder building insurance is buildings cover specifically designed for freehold properties containing leasehold flats.
Block of flats insurance is one of the most common forms of freeholder insurance that looks after the physical structure of the building as well as communal areas such as corridors and staircases.
Leaseholders of flats within the property are responsible for their own contents insurance but the buildings cover is typically included in the whole block and paid for via a service charge.
Maisonette insurance is another situation where freehold insurance is required because one or both of the flats within the building will be leasehold.
If you’re responsible for paying building insurance as a freeholder or as an occupant in a strata titled building, then you need to protect your investment in the physical structure of your property.
But if there are multiple flats in the same building, owned by different people, then the freeholder insurance under your home insurance policy can be a little more complicated.
For flats that have been sold on long leases, the building’s main risks are shared by all the flatowners. These risks include normal wear and tear as well as the risk of any extreme weather conditions that may occur in the location.
Your home and/or rental property insurance should not be assumed to be right for you. Make sure you pick the right type of policy, and you’ll avoid the unpleasant surprise of an insurer declining to pay out on a claim.
In this case, the maisonette insurance will pay out to repair or replace the structure of the building (the “gut” of the building).
This will include things like the roof/guttering, external walls, foundations, etc. If you have a freehold maisonette insurance policy, the insurance will cover the cost of the rebuilding the damaged part of the flat that has been damaged by the flooding.
From wind, sun, hail, lightning, earthquake, collapse of buildings, terrorist attacks and a myriad of other perils, your home is bound to be damaged in some way or another. Freeholder insurance provides protection against the costs associated with repairing or replacing your home caused by any of the above-mentioned disasters.
This insurance will allow you to focus on the things in life that are most important to you, like spending time with your family, not on how you are going to pay for repairs to your home.
You can get a freeholder building insurance quote over the phone or online instantly.
An insurer may decline to pay a claim if they feel the claim is not covered by the terms of the policy or, if the policy does not have the cover terms the claimant needs for a valid claim.
Every property which comprises of two or more flats or apartments is considered a ‘block’ for insurance purposes. It might also cover different variations of the building. With every ‘block’ insurance policy, there are some things you need to watch out for.
Joint Freeholder Building Insurance
It may seem simple enough to get building insurance from your home insurer but often it’s not. If you do need building insurance then we can certainly help.
The building freeholder insurance is not much different to owning a house jointly or with a mortgage. In both those cases there are additional parties with an interest in the property and who are effectively joint owners. Often this is where there are only two flats in the building, where the effort of setting up a jointly owned company to own the freehold seems like a lot.
If there are any claims against the award, it obviously needs to go to whomever needs it the most, which is why each share of the freehold is treated individually.
Who’s responsible for leasehold buildings insurance?
If you own a leasehold house or flat, check with your landlord to see if he’s already taken care of buildings insurance for the property. Many landlords buy their own buildings insurance, then charge house- or flat-owners a share of the cost through their service charge.
But there’s no guarantee your landlord has arranged buildings insurance for the property, so you’ll need to check the lease or have your lawyer check on your behalf. If the landlord hasn’t arranged cover, you’ll need to arrange cover yourself by buying your own buildings insurance.
When you have several flats in the building, you may decide it would be cheaper to buy a policy as a group. You could also discuss this option with your current insurer.
Property Owner Liability Cover
A good homeowner’s insurance policy should also include third-party liability cover, which basically means if the house or the contents of the house causes harm to someone or their property and sues you your legal fees are covered.
If you are the insured, you should insist on this additional cover as it could make a huge difference to your peace of mind.
Liability cover usually comes in bands of £2 million or £5 million although higher bands may be available elsewhere.
In a high-rise building the potential claim is probably higher than in a standard house as you may have more people coming and going and also the rebuilt value may well be higher.
Freeholder Building Insurance Comparison
There are several options for freeholder building insurance. However, when it comes to getting a personalised quote from a reputable provider, going directly to the source is usually the best option. You can find out more about these sources by doing a search on “freeholder building insurance” or “block of flats insurance” in your favourite search engine.
What does freeholder insurance cover?
Freeholder insurance is a form of landlord insurance that mainly covers your investment in the structure of the building. However, it should also include features like third party liability insurance, landlord contents in communal areas (including carpets) and loss of rent if the property is uninhabitable.
Landlord insurance should cover the structure of the building, along with any communal areas, like the carpets and paint. It should also include features like third party liability insurance, and loss of rent if the building is unoccupied or damaged.
Landlord insurance is insurance that protects you as a landlord. It usually includes coverage for the structure of the building, as well as protection against losses from lawsuits, fire, vandalism, etc.
What insurance do you need for a flat?
Landlords need to protect their investments in the value of their buildings, which is why it’s important to have landlord insurance. It’s not a legal requirement but it is important to protect your investment in the value of the building in case it is damaged.
Do I need buildings insurance for a leasehold property?
If you are a leaseholder then usually buildings insurance is the responsibility of your freeholder, although you can double check this in your lease. Typically buildings insurance is then included as part of your service charge.
If you are a lessee then usually buildings insurance is the responsibility of your freeholder. This is usually included as part of your service charge or rent.