Leasehold Flat - Which type of home insurance required?

LdnFtB

Hi,

I'm in the middle of buying a leasehold flat and my mortgage lender has advised that I'm required to arrange home insurance as a condition of lending.

I'm a little confused as to which type is required. The buildings insurance is covered by the freeholder, but I'm not sure if only contents insurance is sufficient as it doesn't seem to include fixtures and fittings such as kitchens and bathrooms.

Can anyone help advise what I need?!

eddddy

The mortgage lender requires building insurance. In your case, this is arranged by your freeholder (assuming that's what your lease says), so that's been done for you - you don't have to do anything more.

You can arrange contents insurance as and when you wish - your mortgage lender won't be interested in this.

huckster

That is a standard mortgage condition.

You need a normal Contents Insurance, but you need to work out the replacement costs of anything not covered by the freeholders Buildings Insurance. E.g Kitchen, bathroom, plus light fittings, anything you add to the inside of the flat attached to walls/ceilings.

Once you work out the approx cost of the type of things mentioned above, you approach the Contents Insurers you want to use to discuss. They will usually cover, but charge a cheaper rate, than standard contents e.g furniture, TV sets, beds etc.

Because this is new to you, suggest you phone a brokers/insurers to run through information. You can do it online, but then you risk not knowing what you are doing and end up not properly covered.

Also recommended, take out Contents including Accidental Damage cover.