Landlords Insurance for Leasehold Flat

I'm letting out a leasehold flat in a block of purpose built flats, and I've got a bit confused about what landlords insurance cover I need. To my knowledge, I need to have buildings insurance of some sort, but as I understand it, there is a policy on the entire building, which we the leaseholders pay through our annual service charge.

I've got some quotes for landlords insurance, but all seem to include buildings cover - is this redundant in my case? I'm mainly looking to insure what's inside the flat itself (furnishings, since it's a furnished let).

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  • eddddy
    eddddy Posts: 16,156
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    edited 20 September 2023 at 8:38PM

    Regarding buildings insurance - your lease will say who is responsible for buildings insurance.

    As you suggest, it's usually the freeholder / management company who arrange buildings insurance - but occasionally the lease will say that leaseholders are responsible for insuring their own part of the building.

    The other thing to make sure is that the lease allows sub-letting. If it doesn't, the freeholder / mgmnt co might have chosen buildings insurance that doesn't cover sub-letting.

    But if your lease doesn't allow sub-letting, you shouldn't be doing it anyway!!!

    (I'll leave others to discuss Landlords insurance,)
  • As above, first check your lease both on it allowing sub-letting and secondly on whose responsibility buildings insurance is. 

    Assuming it's the freeholder, as is normally the case, it can be worth a quick look at the policy and in particular any clauses around alternative accommodation and fixtures & fittings. You may want just contents or you may want contents plus fixtures and fittings if you have upgraded the kitchen or bathroom from the original spec 

    After that you get all the ancillary add ons like Legal Expenses to help with evictions, Rent Guarantee to cover tenants defaulting and Emergency Cover (someone to fix a burst pipe etc). Most these covers are available separately so up to you if you want them at all and if you do, if you buy it as a package or individual policies.
  • fiish
    fiish Posts: 815
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    Thank you for the input. I've already done the sub-letting consent, we checked this before deciding to do the let :smile:

    I've had a look in the service charge correspondence from the management company, there's a buildings insurance premium in the accounts, but it doesn't look like a copy of the policy was included - probably need to email the management company to get this. I already have the Rent Guarantee and legal expenses cover from OpenRent, so looks like it's just the buildings cover to investigate, and maybe getting contents cover for the furnishings.
  • Managing Agents dont routinely send out the policy wordings etc but they should be available on request. 

    I'm surprised more companies dont to be honest, I know I found a big problem for an umbrella company I worked for once when I asked to see their Professional Indemnity insurance as they'd bought out another umbrella which I was originally with (and a few other colleagues) but clearly not done their Due Diligence properly. The original company didn't ask what we did for a living, the new company claimed they'd been told I was a bricklayer and one of the actuaries also with them was a general labourer when we both worked in financial services and were engaged in a multibillion pound deal... their PI insurance excluded anything to do with financial services. If our client had sued either of us the Umbrella would have been effectively uninsured 
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