Do I Need Building Insurance For a Flat?

If you’ve just bought a flat, you may be wondering whether you need building insurance? Aside from doing all the unpacking and getting settled into your new abode, there is plenty to consider. After all, if you’ve just forked out considerable money on your new flat along with conveyancing expenses, it can give you peace of mind to know that the property is covered.

First of all, let’s recap what building insurance covers. Building insurance covers the bare structural bones of your property, including fixtures and fittings. If you turned your house upside down and shook out the contents, building insurance would effectively cover what’s left inside.

A typical building insurance policy protects against damages caused by fire, flood, adverse weather and burglary. In other words, you’re mostly protected against incidents outside your control. You can choose to add accidental damage or more niche protection clauses if you wish.

But do you need building insurance for a flat?

Buildings insurance is not a legal requirement when purchasing a flat, however, many mortgage lenders may expect you to have insurance before agreeing to lend you any money. If this is the case, then yes, you will need building insurance for your flat.

With a flat, it’s easy to perceive the potential issues with building insurance. What can you do if someone else is neglecting their flat which is causing damage to yours? These are all questions to ask your conveyancer.

The majority of flats are leasehold and the buildings insurance is provided within the lease under a monthly service charge. If on the rare occasion the flat is freehold, then you may have to arrange your own buildings insurance. So in summary, who is responsible for building insurance depends on how you own your flat. If you are a leaseholder, then your freeholder should take care of buildings insurance for the whole building.

If you jointly own the freehold with other leaseholders, then you are collectively responsible for making sure the whole building is insured.

What about if you’re renting?

If you’re only renting your flat, then you don’t need to purchase building insurance – that is the responsibility of the landlord. However, you may want to consider contents insurance to cover your personal belongings.

Speak to Agentis today

Agentis is a team of mortgage experts and insurance brokers who can help you find suitable building insurance cover for your flat. Speak to us today to arrange your free initial consultation.