© 2025 News On The Block. All rights reserved.
News on the Block is a trading name of Premier Property Media Ltd.
© 2025 News On The Block. All rights reserved.
News on the Block is a trading name of Premier Property Media Ltd.
Richard Benson, estate management director of Kinleigh Folkard & Hayward, provides expert advice on block insurance from a managing agent’s viewpoint.
When buying a home within a block of flats one of the most important questions to ask is regarding the insurance; who is responsible for buildings insurance, is there a block insurance policy and ultimately, what is the leaseholder covered for by the freeholder, head lessor or management company?
As a legal requirement, it is not possible to get a mortgage on a property that does not have buildings insurance. Under the terms of the lease, the landlord is legally required to insure the building against fire and any other perils that ought to include alternative accommodation cover, trace and access; loss of keys; and there are other considerations that will be included by a reputable insurer.
John Dunn, Director of Heath Lambert Real Estate a division of Heath Lambert Group, the independent insurance broker, said: “Insurance needs to be in place to cover loss or damage to a property or any aspect to do with a building, therefore protecting a leaseholder or freeholder’s investment and giving peace of mind.
“There are many insurers and brokers who offer insurance to cover loss or damage, however the best deals are arranged by specialist brokers who have established policies and competitive terms with major insurers. It is important to realise the difference between a run of the mill fire policy, for example, and a specially designed policy that will meet all the needs of residential buildings.”
Free advice
The freeholder, head lessor or management company arranging the insurance policies ensures that the building and every aspect relating to the building is insured at all times. The cost of the freeholder’s policy will be incorporated into the annual service charge. As a leaseholder, if you feel you are being excessively charged for insurance, or any other costs within the service charge, refer to the terms of your lease and contact your managing agent, or the Leasehold Advisory Service (LEASE) that provides free advice on the law affecting residential leasehold property.
Leaseholders should arrange householder’s insurance privately and it should include cover for loss or damage to contents, occupiers’ liability and employers’ liability. A report by Which? published in January, revealed that almost six million UK households do not have contents insurance, however insuring your belongings is certainly advisable. A leaseholder also may want to consider a loss of rent policy, for example if a flat was damaged by a fire and a tenant terminates his contract, this cover will indemnify the flat owner against his loss of rent following the termination of the lease as a result of the damage.
While insurance can seem a complex and time consuming task, in reality with the advice of a specialist, well-regarded broker and a professional managing agent; the necessary insurance should be in place; however to prevent any surprises it is always essential to verify the level and terms of cover as the devil is often in the detail.