Insurance on leasehold flat when owning the freehold

Insurance on leasehold flat when owning the freehold

14:09 PM, 14th March 2015, About 8 years ago 3

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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: Insurance on leasehold flat when owning the freehold

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.




Mark Alexander - Founder of Property118 View Profile

14:19 PM, 14th March 2015, About 8 years ago

Hi Nick

Freeholders should insure buildings but they are not responsible for insuring your liabilities as a landlord or the contents of your property. If a workman, tenant of guest of tenant were no have a nasty accident in your flat then you could be held liable under certain circumstances. The insurance required to cover this is called Landlords Liability Insurance, I have it on all of my flats.

The problem is that very few insurance companies provide landlords liability insurance on a stand alone basis and when they do they have minimum premiums of around £70 per annum. To deal with this I insure all of my flats for contents (even if they are unfurnished) and then add the landlords liability to that. I make sure I cover as much as possible for the minimum premium. Not only does this cover me for landlords liabilities, it also cover me for damaged carpets, work surfaces, walls, lights, window dressings etc. etc.

With regards to getting quotes I offer the following advice. Get a quote from your own broker first. When you have his quote, complete only the first page of our Landlords Insurance online quote system so that it is logged that your enquiry came from Property118 and the GUARANTEE to beat any like for like quote kicks in. Discount Insurance will then call you. Don't continue past the first page of the form because your quote needs to be bespoke and you will struggle to get it online. When Discount Insurance quote you, agree to send them a copy of what your broker provided and remind them of their guarantee to beat it.

Not only will the above ensure that you have the most appropriate cover, it will also GUARANTEE you a good price 🙂

Advance Block Management

12:09 PM, 17th March 2015, About 8 years ago

Dear Nick.

The freeholder is respondible for the 'shell' of the block and the leaseholder would be responsible for whats inside of their own property. The contents insurance for example would therefore be the owners responsibility.

Kind Regards

Nicholas Richards

12:50 PM, 21st March 2015, About 7 years ago


Thanks for the advise.


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