When it comes to owning a house, buildings insurance covers your bricks and mortar. It's that simple. If it's landlord insurance for flats you’re after, things are a bit different.
Leasehold or freehold?
As the leasehold owner of an apartment, or multiple flats in a single block, the responsibility for maintaining and protecting your property falls to the landlord who owns the freehold of the building as a whole.
If you’re a freeholder, or a leaseholder looking to buy your share of the freehold with neighbouring landlords keen to follow suit, then not only do you get to enjoy more control over a building – the responsibility to protect it is yours too.
As a leasehold owner, you and your tenants are at the mercy of the block owner and whatever service charges they may choose to set - often in reflection of the building insurance premium, plus any other costs they may face in owning the property itself.
If you're a current or prospective freeholder, it's up to you to make sure the right policies are in place should the unthinkable happen, and it all falls down.
This means making sure your insurance requirements cover communal areas such as stairwells and gardens, and that you are also protected against any liability claims for accidents should a visitor hurt themselves, for example.
Additional refurbishment costs likely accrued through standard wear and tear not only to your own apartment, but to the building as a whole, should also be considered by freehold landlords. Employer's liability insurance if security or door staff are also involved may also be a requirement too.
For some, securing appropriate cover can also mean joining forces with neighbouring freeholders to take out a block buildings insurance policy which caters for everyone, and can sometimes come at a more reasonable rate as a result.
For others, individual buildings and liability insurance covering a flat or apartment in its own right brings with it peace of mind that, regardless of who owns what elsewhere in a building, their own little corner stays safe whatever the weather.
In any event, one major bonus owning a flat on a freehold basis brings is that it gives you the opportunity to shop around for low-cost apartment landlord insurance tailored to you and your individual circumstances.
And as a freeholder or a leaseholder, the need to protect yourself against the potential for loss in income due to tenants moving out, failing to pay or property damage beyond your control will always stand – see our Rent Protection
and Unoccupied Property
pages for more on this.
To help make a complex process a whole lot simpler, Protect Your Bricks searches the whole of the market on your behalf, to bring you a range of quotes which are right for you - at a cost you can afford and with no hidden extras.