What is leasehold buildings insurance?

Leasehold buildings insurance covers the cost of repairing or rebuilding your leasehold flat or house if it’s damaged by storms, fire, flooding, or other unexpected events. It protects the structure and permanent fixtures of the property, ensuring costly repairs don’t fall on your shoulders alone.

The Department for Levelling Up, Housing and Communities (DLUHC) reports that England has about 4.98 million leasehold properties, with roughly 70% being flats and 30% houses. Whatever type of leasehold property you own, having the right insurance in place helps you meet the requirements of your lease while giving you valuable peace of mind.

Insurance arrangements and responsibilities can differ depending on the property type. In blocks of flats, for example, buildings insurance is often arranged by the freeholder or managing company. For leasehold houses, however, the responsibility usually falls to the leaseholder. Checking your lease carefully will make sure you know exactly where you stand.

Do I need buildings insurance if I am the leaseholder?

Who arranges buildings insurance can vary by property type, so there’s no guarantee the freeholder will have it in place. You may need to arrange your own cover for the property, but the lease or contract you signed will clarify this for you.

For flats in particular, the freeholder will typically arrange buildings insurance and charge you your share through the service charge. But do check your lease, and even if cover is in place, some internal fixtures, like kitchens or fitted wardrobes, may still be down to you.

If you own a leasehold house, it’s usually down to you to arrange buildings insurance as these are individual properties. But again, always check the terms of your lease to be sure.

If you rent the property, buildings insurance should be covered by your landlord, though it’s worth checking to be sure. Either way, their policy won’t protect your belongings. That’s where contents insurance for tenants comes in. It’s not compulsory, but it could help you replace things like gadgets, clothes or furniture if the worst happens.

What does insurance for leasehold buildings cover?

Coverage varies between insurers and also depends on the level of buildings insurance you select and the type of property you live in.

Here’s a summary of what buildings insurance may typically include for a house, depending on the insurer and policy:

  • Damage to your home’s structure: Covers things like walls, roof, windows and permanent fixtures if they’re damaged by fire, flooding, theft or storms.

  • Subsidence and land movement: Includes cover for subsidence, heave of land and landslip, which can cause serious structural problems.

  • Alternative accommodation: Pays for somewhere else to live if your home is temporarily uninhabitable due to damage covered by your policy.

  • Replacement locks and keys: Covers the cost of replacing locks on external doors if your keys are lost or stolen, plus alarm systems inside the home.

You’ll usually be covered by your freeholder’s buildings insurance for the following if you live in a multi-occupancy block of flats:

  • Communal areas including stairwells, hallways, and associated walkways.

  • Roof.

  • Car parks.

  • Costs of debris removal.

  • The rebuilding of your building including groundworks.

  • Cost of plans, drawing and fees to build a replacement building.

Each insurer will have different limits and rules for optional extras, so it’s worth checking the details carefully. That way, you’ll know exactly what you’re protected for.

You may also want contents insurance to cover your personal possessions. The policies work together to offer complete protection.

What isn’t covered?

No insurance can cover absolutely everything, so it’s really important to check the exclusions in your policy. While buildings insurance protects against lots of risks, there are some common things these policies usually won’t cover, including:

  • General wear and tear or gradual deterioration.

  • Damage caused by wet rot, dry rot or frost.

  • Storm damage to fences, gates or hedges.

  • Problems resulting from poor workmanship or design faults.

  • Any events or damage that happened before your policy started, or situations you knew about beforehand (like a flood warning for your area).

  • Loss, damage or liability caused by deliberate or criminal actions by you or anyone living with you.

  • Damage caused by domestic animals, such as chewing, scratching, tearing or fouling.

It’s always best to make sure you read the full policy details carefully to understand all the exclusions.

What are my rights as a leaseholder when it comes to buildings insurance?

As a leaseholder, you have specific rights regarding the buildings insurance that covers your property. These include the right to:

  • Access details about service charges or commissions linked to your freeholder’s buildings insurance.

  • View copies of the freeholder’s buildings insurance policy.

  • Know the freeholder’s name, address, and contact information.

  • Be consulted on certain maintenance and management costs.

  • Challenge some charges in certain situations.

For more detailed information, the Gov.uk website offers useful guidance on leaseholder rights and responsibilities.

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Page updated on 6th November 2025, Reviewed by Richard Groom