Insurance on leasehold flat when owning the freeholdMake Text Bigger
I’m a fairly new landlord with four flats and am trying to streamline the admin side of it all (which is more than I imagined!). I sought advise from a local insurance broker about my insurances and was advised as follows:
Flat 1 and 2 are purpose build flats in a detached block comprising just the two flats (I bought the first flat about 10 years ago and the 2nd last year). Both flats are leasehold and have separate mortgages and insurance. Soon after buying the second flat, I bought the freehold of the block. I am being advised by a local insurance broker that I do not need the two separate insurances and should instead take out insurance for the block as the freeholder and that this would cover all the normal stuff as well as, for example, a fire in one of the flats, damage from a break-in or a leak in one that affected the other etc. Does this sound correct?
Similarly, I have two other flats and am being told that if I do not want contents insurance, there is no point taking out insurance as what the management company provides legally needs to cover, for example, a fire, or a leak from the upstairs flat, and this would include all renovations to the original condition etc. If this is so, why do landlords take out insurance – why do I need additional insurance?
Any advise would be appreciated. I will also contact the 118 recommended insurance company but want to do my research first.
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