Buildings insurance
Usually arranged by the freeholder and paid for by the leaseholders as a group, buildings insurance covers the physical structure of your home – the bricks and mortar – and any permanent fittings or fixtures
Buildings insurance for flats with leasehold
Compare buildings insurance for leaseholders
Compare home insurance quotes from 85^ providers
We gather quotes and compare prices from 85
What is leasehold insurance?
Leasehold buildings insurance is buildings insurance that covers structural damage to a property caused for example, by storms, fire, or the escape of water through a burst pipe.
These policies cover the fabric of the building itself including communal areas such as hallways, but not the contents inside that building.
Leasehold insurance is designed for a property that is owned by an individual, company or group (the freeholder) and lived in or rented by others (the leaseholders), typically in a block of leasehold flats.
It is usually the freeholder’s responsibility to arrange buildings insurance for the whole property, although management agents may also do it for them.
Arrangements may vary in smaller blocks of flats – for example, if you live in a converted terraced house – and if you have share-of-freehold, you’ll need to buy buildings insurance jointly with the other freehold owners.
Do I need it?
The freeholder of a block of flats will need to arrange buildings cover, and most leaseholders in that block will be covered under that policy. In fact, buildings insurance for individual leasehold properties in a block isn't a legal requirement.
However, your mortgage lender will probably insist that you have it in place before purchasing a leasehold property anyway, asking to see a copy of your leasehold insurance documents before processing your mortgage application.
Even if they don’t, it may be worth considering a policy to protect yourself financially if you ever need to make a claim.
There are also some circumstances in which individuals will have to arrange their own policy regardless, such as those living in leasehold houses rather than a block of flats, those who own their property as a share of the freehold, and those in a Right to Manage (RTM) arrangement.
Am I responsible for buildings insurance as a leaseholder?
If you own a leasehold flat, the freeholder will usually be responsible for arranging buildings insurance. The cost will be split between the leaseholders and payable via the annual service charge. In some cases, however, leaseholders may be responsible for taking out buildings insurance for the property. You may be responsible for buildings insurance if the following applies to you:
-
You have 'Right to Manage'
Some blocks of flats have the “Right to Manage” (RTM). Under this arrangement the leaseholders take over the running of the building and will be responsible for buying buildings insurance
-
Your flat is commonhold
In a block of flats where a flat is commonhold – or “share of freehold” – the flat owners as a group will be responsible for buying buildings insurance. Commonhold is an alternative to leasehold that allows you to own the freehold of an individual flat
-
You own a leasehold house
If you own a leasehold house, you are responsible for the building, therefore it will be your responsibility to arrange and pay for buildings insurance
What does leasehold buildings insurance cover?
While your cover may vary depending on your policy, a buildings insurance policy for leaseholders will normally cover the following:
-
What is covered
The cost of repairing the building should it be damaged by subsidence, storm, flood, fire, and/or escape of water
Damage cause by vandalism or theft
Fallen trees, lampposts, and vehicles colliding with the property
The cost of rebuilding the building should it be totally destroyed (i.e. by fire)
Damage to the communal areas of the building, such as hallways, staircases and landings
-
What isn’t covered
The possessions and contents belonging to leaseholders in each flat
General wear and tear
Damage by pets
Poor workmanship
Pest infestation
Frost damage
What is the difference between leaseholders and freeholders?
What is the difference between leaseholders and freeholders?
The freeholder of a property owns it outright, including the land it’s built on. They have to maintain the building or appoint a management agent to do so for them.
A leaseholder owns the property for a set number of years: the lease term. Leases normally start at 99 or 999 years, and when the lease ends, ownership returns to the freeholder, unless the lease is extended.
This means different everyday responsibilities usually fall to different parties.
Freeholder’s responsibilities Leaseholder’s responsibilities*
Making repairs, such as fixing a leaking roof | Maintain the interior of their flat, including cosmetic repairs and decorations |
|---|---|
Organising services including water and electricity supply | Pay for their electricity, water and gas use |
Arranging buildings insurance | Pay for their portion of the buildings insurance |
Cleaning and maintaining communal areas, including lobbies, stairwells and communal outdoor space | Pay service charges and/or ground rents and cover the cost of any damage they are directly responsible for in communal areas |
*Depending on the terms and conditions of their lease.
How do I find out when my property was built?
It’s important to know the date your home was built as it can directly affect both how risky insuring your property may be, and how much it may cost to repair or rebuild.
Older properties typically carry greater risks and costs and so age can directly affect the price of cover.
Start by checking the title deeds or documents related to the property, as these often contain the construction date.
The HM Land Registry may also hold relevant information regarding the property's description and who owns the land, or the local council’s planning department has records of building permits and planning applications.
If you have an older property, try the 1862 Act Register or census returns (conducted every 10 years between 1841 and 1911) to find a first mention of the address.
Local archives, such as parish records, county record offices or your local library, or looking for your house in Historic England's National Heritage List for England can also help.
But while online property sites like Zoopla or Rightmove can give you broad information based on typical characteristics or other buildings in the area, these are non-specific guesses.
If you’re not sure, consider using a chartered surveyor to accurately assess your particular home’s age.
What are the different types of home insurance?
There are two types of home insurance: buildings insurance and contents insurance. You can buy them separately or get both from the same company in a combined house insurance policy.
-
-
Contents insurance
Managed and paid for by individual leaseholders, contents cover protects the possessions in your home. Some policies also cover certain belongings out of the home
-
Buildings and contents insurance
Combined policies can be useful if you are responsible for arranging and paying for both types of home insurance as they can be cheaper than standalone policies. However, this option is unlikely to apply to typical leaseholders
How much does leasehold buildings insurance cost?
The average price of buildings insurance is currently £217.25
Premiums will depend not only on whether you’re insuring a house or a block of flats, but also details of that property and its history, such as:
Construction methods and materials
The presence, type and age of any cladding
The number of units in the building
The building’s fire safety record and current fire safety features
What else affects the cost of leasehold buildings insurance?
Other factors affecting the cost of leasehold buildings insurance include:
Who pays: Whether you pay for the policy directly or as part of your service charge
Location: Where you live
Size and rebuild value: The size and rebuild value of the building
The rebuild value of a property often differs significantly from its purchase price or market value, so consider arranging a rebuild valuation from a RICS certified valuer if yours is no longer up to date.
If you're responsible for purchasing buildings insurance, you can compare quotes to get the best cover.
How to get cheaper leasehold insurance
Increase your excess
Asking for a higher excess tells insurers that you’re less likely to make small claims, so you get a lower premium. However, be careful not to increase your excess so much that it becomes unaffordable. If an event happens where you need to claim for multiple incidents, you may need to pay your excess more than once, which is something to keep in mind.
Pay annually
Insurers often offer discounts if you pay annually instead of monthly
Value your property rebuild costs correctly
If your property is undervalued, insurance payments may not cover the rebuild costs. Similarly, if the building is overvalued, your insurance premiums will be higher than they need to be and your insurer might reject your claim.
Build up your no-claims discount (NCD)
You can usually get a no-claims discount if you’ve gone several years without making a claim. Avoiding making small or frivolous claims can help you boost your discount and save on your insurance.
Review your cover
Overinsuring yourself is a common way that people end up overspending on their insurance. By accurately calculating the value of your jewellery you can avoid making this mistake.
You should also take time when renewing your policy to make sure the value hasn't changed. Your cover won't change with inflation, so you will need to check that your policy still covers what it should.
Shop around
The best way to find a good deal is by shopping around, as this way you can see all the options available to you. This means you can compare deals by factors that are important like single-items limits, worldwide cover, theft excess, and cost. Once you’ve compared your options you’ll be able to find a deal that suits your needs best.
Our expert says…
In most scenarios, buildings insurance is arranged by the owner of the property, although this isn’t always the case. More of us are now renting according to our recent survey, which highlighted that only 59% of homes are owner-occupied now compared to 70% back in the 90s, so it’s important to know where you stand.
While you might not have much say over what type of policy is bought as a leaseholder, you still have rights and can call in expert support, such as from the county court, if the freeholder isn’t complying with its responsibilities on insurance cover. If it is your responsibility to purchase buildings insurance, you can compare quotes and get the best cover to suit your circumstances with MoneySuperMarket.
David McDermottroe Insurance & Personal Finance Expert
When should I get leasehold buildings insurance?
-
Your freeholder will normally arrange leasehold building insurance if you live in a block of flats
-
You have the legal right to request information about your insurance policy, including a written summary. Your freeholder must respond within 21 days
-
You also have the right to inspect and take copies of the buildings insurance policy
-
If your freeholder fails to comply with their obligations, you can apply to the County Court for an order for Specific Performance
-
If you have share-of-freehold, you should arrange buildings insurance as a group with the other freeholders
-
If you have RTM, your RTM company or tenants' association should arrange buildings insurance
-
If you buy a house, you should arrange buildings insurance to be in place when you exchange contracts
How do I get leaseholder insurance?
If you own a flat, the freehold might be owned by:
A freeholder or ‘landlord’, normally a company
One flat owner (for example, where a terraced house has been split into two flats and one flat owns the freehold for the whole house)
The flat owners jointly (for example, in a purpose-built share-of-freehold block)
In all these scenarios, building insurance will normally need to be arranged for the building as a whole.
If one person or a company owns the freehold, it is their responsibility to arrange building insurance and split the cost as set out in each lease. The same applies if one flat-owner owns the freehold.
In a share-of-freehold block, it’s normal practice for the owners to form a management company, with each flat owner owning one share of the company.
When an individual flat is bought or sold, the share of the management company passes to the new owner as part of the transaction.
In this case, the legal entity responsible for the building insurance is the management company.
This might be run by a board of elected directors who in turn might hire managing agents to do the day-to-day running of the building.
If you own a leasehold flat in a block with RTM, the RTM company will be responsible for arranging building insurance for the building as a whole.
In a block of flats, it’s not normal practice for each leaseholder to buy building insurance.
This is because there will be parts of the block – such as the walls, roof, internal staircases, and front door – that are common areas for all the flats.
Optional upgrades and add-ons
Below are some of the common extras you can add to your leasehold insurance policy to get comprehensive cover:
Accidental damage
Protects against unintentional damage to your home or contents – for example, a cracked TV screen or spilt paint on the carpet. It’s especially useful if guests or renters use the property, or if you're not around to supervise repairs and upkeep.
Home emergency cover
Covers the cost of urgent repairs for incidents like a broken boiler, burst pipe, or blocked drain.
Alternative accommodation
Pays for temporary housing if your second home becomes uninhabitable due to fire, flood, or other insured damage. This is vital if you or guests are staying there at the time, or if you're relying on rental income and need to house tenants elsewhere.
Adding these extras gives you fuller protection and peace of mind – especially if the property is remote, often unoccupied, or used by others.
Legal expenses cover
Covers legal dispute fees and offers legal and tax support services up to £100,000 per claim.
Trace and access cover
Helps you to find the source of a water leak in your property.
House keys cover
Covers the cost if your keys are lost or stolen and you need to change the locks.
Why compare home insurance quotes with MoneySuperMarket?
Whatever cover you’re looking for, the easiest way to find the best policy is by comparing quotes online. You can compare policies in one simple search on MoneySuperMarket.
-
Trusted
We're trusted by our customers. We only work with insurance providers authorised and regulated by the Financial Conduct Authority (FCA).
-
Save money and earn rewards
Avoid auto-renewing and compare tailored quotes for free to find the cheapest insurance for you. Buy through us and get unlimited access to free days out (on our app) and much more with SuperSaveClub.
-
Compare quotes in minutes
Comparing quotes remains one of the best ways to save money and time. Storing your details allows you to refresh your quotes in seconds.
Trusted Service Awards Winners
MoneySuperMarket has won the Feefo Platinum Trusted Service Award, an independent seal of excellence, which recognises businesses that consistently deliver a world-class customer experience.
Is leasehold buildings insurance mandatory?
No. It’s not required by law to have buildings insurance, but it may be a requirement for your mortgage or remortgage. If so, your lender will stipulate this in their terms. Expect to provide a policy certificate and even a statement from the freeholder confirming that all ground rents or service charges are up to date too.
How the building should be insured should also be explained in your lease. If a policy is a stipulation of your leasehold, you be in breach of your agreement if it comes to light that you don’t have one, especially if you need to claim.
Even if it’s not mandatory, having buildings cover in place is still a good idea. Should there be a problem with the structure of the property, it can often be expensive to put right. This is especially true if it requires a rebuild.
Having several leasehold flats in one building also increases the chances of incidents, making cover even more important.
What do I do if the freeholder is charging me too much for buildings insurance?
If you suspect you're being overcharged for buildings insurance, you have the legal right to ask the freeholder for a copy of the insurance policy.
The copy must show:
How much the building is insured for
The name of the insurance provider
The full policy details, including what’s covered, start date, excesses and any exclusions.
Many leases have a clause that highlights your right to inspect insurance documents related to your home, so failure to do so could leave your freeholder in breach of the lease.
But as a leaseholder, you also have a statutory right to inspect an insurance policy document from a freeholder or landlord even if there’s nothing in your lease. By law, the freeholder must comply within 21 days or face legal action and a £2,500 fine.
If your freeholder ignores your request or you think the charges are unreasonable, you can take your case to the First-Tier Tribunal (Property Chamber - Residential Property) where an independent judge will rule on the dispute. It’s best do this as a collective with other flat owners in the building.
If you believe you’re paying too much for your cover, approach the freeholder as a group and provide up to date comparable quotes as evidence. If the freeholder fails to engage with your complaint within a reasonable time, consider approaching the Housing Ombudsman for advice and further action.
How much leasehold buildings insurance should I get?
If you need to arrange buildings insurance, then you should take out enough cover alongside your fellow leaseholders for the rebuild cost of the whole property - including professional fees and debris removal - not the market value or purchase price.
Consider commissioning, and regularly reviewing, a RICS rebuild valuation to ensure you’re not caught out by spiralling rebuild costs and the ‘average clause’.
If the sum assured is lower than the rebuild cost, this clause allows insurers to reduce their payout accordingly. If your sum assured is worth 80% of the rebuild cost, the insurer could decide to only pay 80% of a claim.
Our guide to calculating the rebuild cost of your home can help.
What other leaseholder charges will I need to pay?
As well as insurance, leaseholders will need to pay an annual service charge to cover communal maintenance or repairs, to protect against an emergency, or for further upkeep of the building and grounds.
The more features your property has, such as a gym or concierge service, the higher the service charge. You’re entitled to see the breakdown of this, including all receipts, to know exactly where the money is being spent.
You may also have to pay ground rent. Unpaid ground rent can go back up to six years. However, it can only be increased if it’s stated in the lease.
Will insurance cover a water leak from the upstairs flat?
Yes, buildings insurance is designed to cover damage to your property, such as that caused by a burst pipe from an upstairs flat.
If you discover a leak, isolate and contain the water as much as possible and contact the freeholder or their managing agent as a matter of urgency.
Ensure you document and photograph (with timestamps) the damage caused and proof, if possible, about the source, and keep receipts for any claims.
Damage to the structure of the building will be covered by the buildings insurance while damage or loss of personal contents will be covered by your own home contents insurance policy.
Generally, leaseholders are responsible for the pipes that only serve their own property, even if they are found outside.
In which case, if a neighbour has neglected to maintain the pipes that serve their property and a leak causes damage to your home and/or contents, your neighbour is liable.
A ’trace-and-access’ clause in buildings insurance covers the costs of investigating the source of damage, including escape of water, and making sure it can be reached for repairs.
Depending on the wording of your lease agreement, the excess may be shared among all the leaseholders affected or a single individual. It’s always worth checking what you’re liable for.
Compare leasehold buildings insurance
Finding cheaper buildings insurance is quick and easy with MoneySuperMarket.
Just tell us a few details about the kind of cover you’re looking for. We’ll compare quotes from our leading panel of insurance providers to find you the best deal.
Make sure to check that the policy specifies everything you need. Look for exclusions such as wear and tear or storm damage and see whether communal areas are covered. Find out what your liability would be in the event someone is injured onsite. When you’re happy with your policy, just click through to purchase.
What do I need to get a quote?
When you apply for a home insurance quote, insurers will ask you to provide your personal details and any existing policy documents, if applicable.
You will also be asked a number of questions about your house. Here are some things you will need to know:
Your home address and property type e.g. flat, terraced, or semi-detached house
Number of bedrooms
The structure of your home
Year the property was built
Whether the roof is flat or pitched
Details of any security alarms or systems
Total rebuild cost and value of the contents within your home
How does home insurance comparison work?
We do our best to make home insurance comparison easy. So, we go away and do all the hard work – we take the information you provide us, and we bring together all the quotes from our providers that are relevant to you.
We then allow you to compare policies on price, excess, Defaqto ratings, brand, the amount you’d be covered for, and you’ll also be able to see if any add-ons are included as standard with each policy.
Our quotes will take you through to the provider website, but you can always call the numbers provided if you’d prefer to speak to someone about the policy you’re interested in.
Super save with MoneySuperMarket
You work hard to earn your money, and we don’t think you should waste a penny of it paying over the odds on your household bills. That’s why at MoneySuperMarket, we’re on a mission to save Britain money.
Whip your credit score into shape with Credit Score
Super save over and over again with Energy Monitor
There are always more ways to save with MoneySuperMarket
So how do we make our money? In a nutshell, when you use us to buy something, we get a reward from the company you’re buying from.
You might be wondering if we work with all the companies in the market, or if our commercial relationships with our partners might make us feature one company above another. We’ve got nothing to hide, and we want to give you clear answers when it comes to questions like these, so we’ve pulled together everything you need to know on this page.
Reviewed on 10 Dec 2025 by
