Building Insurance for Flats

Do you need buildings insurance for a flat? If you own your flat outright as a freeholder, then yes, you’ll need your own buildings insurance policy. However, if you’re a leaseholder, it’s often already sorted through your management company and included in your service charge. Tenants don’t need it at all, as that’s the landlord’s responsibility.

Let’s break down what buildings insurance for flats actually covers, who needs it, and how it differs from contents insurance.

What is buildings insurance for flats?

Buildings insurance covers the physical structure of your property. Think walls, roof, windows, and permanent fixtures like fitted kitchens and bathrooms. For flats, this type of insurance can be a bit more complicated than for houses, as you’re typically part of a block of flats with shared areas and multiple owners.

Buildings insurance covers damage from risks like:

• Fire and smoke damage
• Storm damage and flooding
• Subsidence and ground movement
• Burst pipes and water damage
• Vandalism and malicious damage
• Accidental damage (depending on your policy level)

Who needs buildings insurance for flats?

Whether or not you need building insurance for your flat depends on whether or not you own it. 

Freeholders and property owners

If you’re a freeholder or flat owner who owns your property outright, you’ll typically need your own buildings insurance policy. This covers your individual flat’s structure and any areas you’re responsible for maintaining.

For those with landlord insurance needs, buildings cover is often essential to protect your investment property from structural damage.

Leasehold arrangements: it’s complicated

Here’s where it gets interesting. If you own a leasehold flat, your lease agreement should specify who’s responsible for buildings insurance. Often, the freeholder or management company arranges buildings insurance for the entire block, and you contribute through your service charge.

However, some leasehold arrangements require individual flat owners to have their own buildings insurance policy for internal structures and permanent fixtures within their flat.

When you might not need buildings insurance

Tenants and renters

If you’re renting a flat, buildings insurance isn’t your responsibility, that falls to your landlord. However, you’ll definitely want contents insurance to protect your personal possessions. More on that shortly.

Covered by management company

Many flat owners in a block of flats find their buildings insurance is arranged collectively. The management company or freeholder takes out a policy covering the entire building, including communal areas like hallways, lifts, and shared facilities. You contribute to this through your service charge.

Wind it back for a second. Check your lease agreement or ask your management company what’s already covered before purchasing your own policy.

What buildings insurance covers (and what It doesn’t)

A buildings insurance policy typically covers:

• The structure of your property
• Permanent fixtures like built-in wardrobes and fitted kitchens
• Common areas (if you’re responsible for them)
• Cost of repairing structural damage
• Alternative accommodation if your flat becomes uninhabitable
• Legal expenses related to property disputes

Common Exclusions

Don’t expect coverage for:

• Wear and tear from normal use
• Poor maintenance or neglect
• Pre-existing structural issues
• Certain types of flooding (check the small print)

Different levels of cover offer varying protection, so it’s worth understanding what type of insurance suits your needs.

Understanding your service charge and insurance

Many flat owners pay a service charge that includes buildings insurance arranged by their management company. This collective approach often works out cheaper than individual policies, but it’s worth checking exactly what’s covered.

Your service charge typically covers:

• Buildings insurance for the entire block
• Maintenance of communal areas
• Shared utilities and cleaning
• Management fees

However, this rarely includes contents within your individual flat, which is why separate contents insurance remains essential.

Contents insurance: what every flat dweller needs

Here’s the thing about contents insurance: whether you’re a flat owner or tenant, you need it. While it’s not legally required, contents insurance covers your personal belongings: furniture, electronics, clothing, and everything else that would fall out if you turned your flat upside down.

Who needs contents insurance?

Everyone living in a flat should consider contents insurance:

• Renters protecting personal possessions
• Flat owners safeguarding belongings not covered by buildings insurance
• Anyone wanting protection against theft, fire, or water damage to their stuff

Contents insurance policies can include:

• Accidental damage cover
• Cover for personal possessions outside the home
• Home emergency cover for urgent repairs
• Liability insurance if someone’s injured in your flat

Lemonade contents insurance

Whilst Lemonade doesn’t currently offer buildings insurance for flats, we do provide comprehensive contents insurance that’s perfect for UK flat dwellers. Our contents insurance covers everything you’d expect, with a few delightful surprises.

Picture this: your kitchen catches on fire when brewing a cuppa goes wrong, or your flat’s been burgled whilst you’re away for the weekend. That’s where Lemonade’s contents insurance steps in to help get you sorted.

What makes Lemonade different

Our home insurance policy approach is refreshingly straightforward:

• Quick, digital claims process
• Clear coverage without confusing jargon
• Competitive insurance premiums
• No lengthy phone queues or endless paperwork

Whether you’re a tenant protecting your belongings or a flat owner looking for contents cover, we’ve designed our policies to be simple and transparent. No hidden exclusions or nasty surprises when you need to claim.

What insurance is legally required for flats? 

There’s no legal requirement for flat owners to have buildings or contents insurance in the UK. However, if you have a mortgage, your lender will almost certainly require buildings insurance as a condition of the loan.

For leasehold flat owners, your lease agreement might specify insurance requirements. Some leases require individual buildings cover, whilst others leave it to the freeholder or management company.

How much does buildings insurance cost?

Insurance cost varies considerably based on several factors:

• Location and local risks (flooding, crime rates)
• Rebuild cost of your flat
• Age and construction of the building
• Type of cover (basic or comprehensive)
• Your insurance provider and policy excess

The rebuild cost (AKA, what it would cost to reconstruct your flat from scratch) is crucial for determining adequate cover. This isn’t the same as your flat’s market value; it’s purely about construction costs.

Getting the right cover

Check your lease agreement

Before purchasing any insurance, thoroughly review your lease agreement. It should clearly state who’s responsible for buildings insurance and what’s already covered through service charges.

Don’t double up

Avoid paying twice for the same coverage. If your management company provides buildings insurance for the block, you might only need cover for internal structures and improvements you’ve made.

Consider your mortgage requirements

Mortgage lender requirements often dictate minimum insurance levels. Ensure any policy meets their specifications to avoid complications.

The bottom line

Buildings insurance for flats can be complex, depending on whether you’re a freeholder, leaseholder, or tenant. The key is understanding your responsibilities and what’s already covered through collective arrangements.

Whilst Lemonade doesn’t currently offer buildings insurance for flats, we’re here to help with comprehensive contents insurance that protects what matters most, your belongings. Our approach cuts through the confusion with clear, simple coverage that actually makes sense.

Ready to protect your stuff? Get a quote today.

FAQs about buildings insurance for flats