Understanding who is responsible for buildings insurance in a block of flats can be confusing. As a landlord, it’s critical to have the right insurance cover in place to protect your investment but you may be asking: “Is the landlord responsible for the buildings insurance on a block of flats?”. In this blog post, Lansdown Insurance Brokers experienced team aim to clear up the confusion around landlords’ responsibilities when it comes to block of flats insurance.
This guide is part of our “Who is responsible for buildings insurance for a block of flats?” series. You can read the other guides in the series and view a simple at a glance visual guide here.
To get started, it’s important to understand the key players that are typically involved in owning and managing a block of flats:
- The freeholder: This is the ultimate owner of the entire building structure and the land it sits on. It could be an individual freeholder, or several co-freeholders. In many cases, the freeholder is actually a limited company. You can learn more about freeholders and their responsibilities for buildings insurance in our related blog: “Is the freeholder responsible for the insurance for a block of flats?”.
- Leaseholders: The freeholder will then often sell leases to the individual flats to leaseholders who effectively buy the right to live there for a set period (as defined in the lease agreement) but don’t own the building itself.
- Landlords: In the context of a block of flats, a landlord is typically an individual or company that buys one or more flats in a block on a leasehold basis and then chooses to rent them out to tenants.
Buildings insurance: Not the landlord’s direct responsibility (usually)
Now, to the big question: Is the landlord responsible for buildings insurance for a block of flats?
In most cases, the answer is no. Instead, the responsibility for arranging buildings insurance typically falls on the freeholder. So, if the landlord is a leaseholder rather than the freeholder, then they usually wouldn’t be responsible for arranging buildings insurance. This buildings insurance usually covers the structure of the building, including the roof, walls, floors, and any permanent fixtures and fittings in the communal areas.
Do landlords pay for buildings insurance for a block of flats?
Although landlords who own the leasehold for a flat, won’t usually pay directly for buildings insurance – as this is the responsibility of the freeholder of the building – they may be contributing to it indirectly via the service charge that most leasehold agreements include.
This service charge usually covers the cost of maintaining the building and its communal areas, as well as a share of the cost of buildings insurance. Many landlords then factor the cost of their service charge (including buildings insurance) into the rent they charge their tenants. Find out more about tenants responsibilities for flat insurance in our recent related blog.
Do I need landlord insurance for a leasehold flat?
While landlord’s may not be responsible for buildings insurance, there are other types of insurance that are essential for landlords who own flats. Here’s a breakdown of some key covers landlords should consider to ensure their property is adequately protected:
- Landlord Contents Insurance: This protects the landlord’s own belongings within the flat being renting out. This could include furniture, white goods, and other items you provide for your tenants. It’s important to note that contents insurance typically doesn’t cover your tenant’s personal belongings.
- Landlord Liability Insurance: This covers you if someone is injured within your flat, and they take legal action against you. For example, if a tenant trips and falls due to a faulty floorboard in your flat and breaks their leg, this insurance could cover your legal costs.
- Landlords Rent Guarantee Insurance: This can offer some financial protection if your tenant stops paying rent. It can offer peace of mind and help cover your costs while you find a new tenant.
- Legal Expenses Insurance: This can cover your legal costs if you need to take legal action against a tenant, for example, to evict them if they breach the terms of their tenancy agreement.
Need specialist advice?
Lansdown Insurance Brokers offers a comprehensive range of landlord insurance that can be tailored to your needs. Whether you own a single flat or a portfolio of properties, we can help you find the right cover at a competitive price.
Here at Lansdown, we believe in treating everyone with respect and acting with kindness. We also understand that navigating the world of buildings and landlords insurance can be confusing. That’s why we have a friendly team of experts ready to answer your questions and guide you through the process of finding the right insurance for your needs. Get in touch to find out more.