Building insurance can give you enormous peace of mind.
It protects one of your most valuable assets: your home.
Living in a leasehold flat makes it natural to feel that this subject is a bit blurry.
Who is responsible for building insurance? And can you be forced to take it out?
Keep reading for the answers to these questions.
Do I need building insurance on a leasehold flat?
You are not legally required to get building insurance on a leasehold flat.
This insurance is often covered as part of your service charge. You should check with your landlord to confirm this.
Your lease agreement should outline who’s responsible for building insurance.
Check the contract to see whether a service charge covers it. Then get support from a qualified solicitor who can explain the situation.
Many experts recommend getting building insurance on a leasehold if the lease states you’re responsible.
This can give you peace of mind. But it may be expensive if you’re paying for the entire building.
Your lease agreement should give more clarity on this subject. And you should get advice from a solicitor.
Remember that even if building insurance is covered in your service charge, this may only apply to the building.
Contents insurance is unlikely to be covered in this. So, if you want this covered as well, you may need to take out a separate policy.
Why should I get building insurance on a leasehold flat?
If building insurance isn’t covered as part of your service charge fee, you may want to take out a policy yourself.
Many experts recommend this. It covers the cost of repairing or rebuilding your home.
For example, if storms, fallen trees or frozen pipes damage it. You’ll sleep easier at night knowing this policy protects your home.
The policy can also protect your belongings via contents insurance. This is useful if you’ve got any valuable items in your leasehold flat.
Can a mortgage lender force me to take out building insurance?
Often, a mortgage lender demands that a property has building insurance before they lend on it.
If this isn’t already in place, they could request that you remove a policy. Otherwise, you may need to go to another bank or find another property.
You aren’t legally required to take out building insurance. But the lender can withdraw their offer if you don’t.
It’s thus up to you to weigh up the different options.
Do I need permission from my freeholder to get building insurance?
You should confirm whether this is already in place. If not, you are usually entitled to take out a policy.
Just write this intention down to your landlord. And get support from a solicitor who can ensure you follow the correct steps.
How much does building insurance on a leasehold flat cost?
Most building insurance claims sit below the £203 mark.
If you’re contributing to a building insurance policy and other leaseholds in the building, it should often be less than this per person.
But you’ll pay for extra service charge tasks on top of this.
It could cost more if you’re paying for the entire building yourself.
Speak to a qualified expert for guidance with this situation. Your rights may be getting violated, depending on the lease agreement.
