Total Landlord Insurance - Leasehold Flat Insurance

There is a crucial distinction between insuring a flat and a house. As a flat owner someone else will likely own the building so you will have different insurance requirements compared to a homeowner who tends to own the entire building. So, what insurance cover do you need as a leasehold flat owner?

Buildings insurance

As a leasehold flat owner, you don’t usually need buildings insurance. In most cases your freeholder will take care of buildings insurance for the entire block of flats, and you will likely pay a share of the buildings insurance cost as part of your service charge.

However, you will need to check the terms of your lease agreement (or have your solicitor check on your behalf) as this will state if it is the freeholder’s or the leaseholder’s legal responsibility. If the freeholder hasn’t arranged cover and it is your legal responsibility, you’ll need to get your own buildings insurance to ensure that you’re adequately covered.

Fixtures and fittings insurance

This cover is designed to protect your permanent internal fixtures and fittings including kitchens, bathrooms, toilets and sinks. Fixtures and fittings insurance will cover anything ruined as a result of an insured peril including fire, flooding, burst pipes, and theft.

Contents insurance

You will need landlord contents insurance for your leasehold flat. This will insure any contents left for the use of your tenants such as carpets or curtains. If you let your property as “furnished”, your contents limit will inevitably be higher than if you let it “unfurnished”. Contents insurance will cover anything ruined following an insured event. It does not cover accidental damage to contents.

Your tenant is responsible for the cover of their own possessions and to be on the safe side this should be clarified with the tenant.

Loss of rent

If you pay a mortgage on your leasehold flat, or rely on it as a source of income, loss of rent cover will allow you to meet your monthly mortgage payments or revenue requirements if your property becomes uninhabitable for your tenants following a valid insurance claim. Your property could be deemed non-tenantable if something like a kitchen fire put the kitchen out of order. Due to the lack of facilities, the property would be considered uninhabitable, and you would lose rent without a comprehensive leasehold flat insurance policy.

Public liability

Public liability includes defence costs for personal injury if a third party such as a tenant, visitor or tradesperson is injured in your flat, for example if they trip over loose flooring. Compensation requested in response to such an accident could cost landlords a considerable amount. It also offers protection for loss or damage (whether the landlord is negligent or not), for example if a pipe bursts due to cold weather causing damage to a tenant’s belongings. Total Landlord Insurance’s Premier policy covers up to £5,000,000 in public liability for any one accident or series of accidents arising out of any one event.