Do I Need Building Insurance for a Leasehold Flat?

If you own a leasehold flat, you may be wondering whether you need to take out your own buildings insurance — or whether that is someone else's responsibility. The short answer, in most cases, is that your freeholder is legally required to arrange buildings insurance and you pay your share through the service charge. But there are important exceptions and things every leaseholder should understand.

Who Is Responsible for Buildings Insurance on a Leasehold Flat?

In a leasehold property, the freeholder owns the building itself and the land it sits on. The leaseholder owns the right to occupy the flat for the duration of their lease — typically 99, 125, or 999 years. Because the freeholder owns the structure, the legal responsibility for insuring the building falls on them.

This applies across the UK, and most lease agreements make this obligation explicit. The freeholder is required to insure the entire block — the external walls, roof, staircases, communal areas, and shared services — against standard risks including fire, storm, flood, and escape of water.

As a leaseholder, you will contribute to the cost of this buildings insurance through your annual service charge. You do not need to arrange a separate buildings insurance policy for your flat.

What Does UK Law Say?

The Landlord and Tenant Act 1985 and the Landlord and Tenant Act 1987 give leaseholders certain rights regarding insurance. Specifically:

• You have the right to ask your freeholder for details of the buildings insurance policy, including the insurer's name, the level of cover, and the amount of any excess.
• If you believe the freeholder is failing to insure the building adequately — or is overcharging for insurance through the service charge — you can challenge this at the First-tier Tribunal (Property Chamber).
• In some cases, leaseholders can apply to have a manager appointed if the freeholder is neglecting their insurance obligations.

The Leasehold Reform (Ground Rent) Act 2022 also introduced changes affecting ground rent and freeholder obligations — though the core insurance responsibility remains with the freeholder.

When Might a Leaseholder Need Their Own Buildings Insurance?

While the general rule is clear, there are scenarios where you may need to consider your own cover:

The Freeholder Fails to Insure

If your freeholder is failing to maintain adequate buildings insurance — either through neglect or financial difficulty — you could be left exposed. If you discover this is the case, report it immediately and seek legal advice. In the interim, you may wish to arrange a limited policy to cover your liability and protect your mortgage lender's interest.

You Have a Mortgage

Most mortgage lenders require evidence that the building is adequately insured before they advance funds on a leasehold flat. Your lender will want to see the freeholder's policy details — your solicitor will usually check this as part of the conveyancing process. If the freeholder's cover is inadequate, your lender may require you to top it up.

Shared Ownership Properties

In shared ownership properties — where you own a percentage of the flat and rent the remainder from a housing association — the housing association typically arranges the buildings insurance and charges you for it. Check your shared ownership lease for specifics.

Newly Built or Self-Contained Freehold Flats

In some unusual cases — particularly with purpose-built freehold flats or certain converted properties — there may be no single freeholder responsible for insuring the whole block. If you own the freehold of your individual flat (sometimes called a flying freehold or share of freehold), you may need to arrange your own cover or join with neighbouring owners to arrange a block policy.

What Leaseholders Should Check

As a leaseholder, you should take these practical steps to make sure you are adequately protected:

• Request a copy of the buildings insurance policy from your freeholder or managing agent each year. You have a legal right to this information.
• Check the reinstatement value — the sum insured should reflect the full cost of rebuilding the entire block, not just its market value.
• Understand the excess — if you make a claim (for example, because of water damage from a flat above), you may be liable for the policy excess. Check your lease to understand who pays it.
• Review the service charge breakdown — insurance premiums passed through service charges must be reasonable. If the charge seems high, you can request a comparison from the freeholder or challenge it.
• Buy contents insurance separately — the freeholder's buildings policy will not cover your furniture, electronics, or personal belongings. You need your own contents insurance policy.

What Is Not Covered by the Freeholder's Buildings Insurance?

Even when your freeholder holds adequate buildings insurance, there are things it will not cover as a leaseholder:

• Your furniture, carpets, and personal possessions
• Internal decorations you have carried out
• Appliances and white goods
• Improvements you have made to the flat (such as a new kitchen or bathroom)
• Your liability to third parties from within your flat

For all of these, you need your own contents and home insurance policy as a leaseholder.

Get A FAST Quote — Are You the Freeholder?

If you are reading this as a freeholder — or as a group of shared freeholders — rather than a leaseholder, the position is reversed: the responsibility to insure the building rests with you.

At Freeholder Building Insurance, we specialise in buildings insurance for blocks of flats, covering freeholders of all sizes — from two-flat conversions to large residential developments.

Get a fast quote for your freeholder buildings insurance today — and fulfil your legal obligation to protect your tenants' homes and your own investment.

You may also find these guides helpful: building insurance for leaseholders, buildings insurance for flats, and leasehold buildings insurance law.