Leasehold buildings insurance

If you own a leasehold property, you lease your home from the owner of the land – known as the freeholder – for a set period of time, usually on a long-term basis.

To make sure you’re covered for repairs to any damage to the bricks and mortar of your home, it’s important to know who pays for buildings insurance on a leasehold property.

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What is leasehold buildings insurance?

Leasehold buildings insurance is cover for a leasehold property. It covers the cost of repairing or rebuilding your home if it’s damaged by things like storms, fallen trees or frozen pipes.

This insurance is often purchased by the freeholder, with the leaseholder paying a share of the cost through service charges.

To get a quote, you will need to provide some basic information about your home.

Who is responsible for buildings insurance on a leasehold property?

If you own a leasehold flat, you may find that your freeholder has already taken care of buildings insurance for the property. Many freeholders buy buildings insurance themselves, then charge leaseholders a share of the cost through their service charge.

But there’s no guarantee that your freeholder has arranged buildings insurance, so you’ll need to check the lease or have your solicitor check on your behalf. If the freeholder hasn’t arranged cover, you’ll need to get your own buildings insurance.

If there are multiple flats in the building, you might find it’s easier (and possibly cheaper) to club together with the other leaseholders and buy a joint policy. It will also ensure the whole building is insured and has the same level of cover.

What is covered by buildings insurance?

Buildings insurance covers the cost of repairing or rebuilding your home if it’s damaged by:

Storms, floods, fire or explosion
Malicious damage, such as vandalism and theft
Fallen trees and lamp posts
Frozen or burst pipes.

Most leasehold properties are flats, so buildings insurance should also cover parts of the property that you don’t own. This includes other flats, the communal areas and any communal gardens.

Want to know exactly what your policy covers? If the freeholder has organised buildings insurance for your leasehold flat, you have a right to ask them to see the buildings insurance policy.

Did you know?

Escape of water is one of the most common types of domestic property claim. According to the Association of British Insurers, insurance providers pay out £1.8 million daily for water damage claims caused by issues like burst pipes and leaks.

What isn’t covered by buildings insurance?

Each policy will have its own exclusions, but typically you won’t be covered for:

General wear and tear
Damage caused by pets
Pest infestations
Poor workmanship
Storm damage to fences and gates
Items in your home including furniture, appliances and personal belongings
Rising damp and condensation
Frost damage, wet and dry rot.

What to know if you have to buy leasehold buildings insurance

Here‘s what you need to know if you’re responsible for buildings insurance for your flat:

If you buy buildings insurance with the other residents, the whole building can be covered.
If you’re covering a block of flats, you might need a valuation survey.
If you’re a joint freeholder of a building with flats, you’ll need to make sure your insurance covers communal areas.
The policy should include liability cover, in case someone is injured when they visit the building.
If you and the other freeholders employ anyone to maintain the building – a cleaner, for example – the policy should include employers’ liability cover.
You need to calculate the rebuild cost of your home to make sure you have enough cover. The rebuild cost is different to the market value.
Sharing a building with other leaseholders means a greater chance of incidents. You might be a careful homeowner, but that doesn’t mean your neighbours are too. Having leaseholder insurance in place, and encouraging your neighbours to do the same, could give you peace of mind.
Paying a proportion of buildings insurance for the freehold may be included in your leasehold contract. If it is, you’re legally required to pay your fair share, or you could be found in breach of contract.
If your freeholder is charging you over the odds for buildings insurance, you have rights. If you’re concerned about overpaying, ask to see a copy of the buildings insurance policy. Once you submit a formal written request, the freeholder must show you the policy documents within 21 days or face a fine.

What other leasehold charges will I need to pay?

You’ll typically have to pay:

Service charge

Usually paid monthly, your service charge is designed to cover repairs to the shared areas of the building, any maintenance and improvements, as well as, in some cases, your proportion of the buildings insurance.

Ground rent

This is a fee you pay to your freeholder as a condition of the lease for the land your home is on.

Reverse or sinking fund

You might need to pay into a reverse or sinking fund as part of your lease. This allows the freeholder to build up a fund to cover the cost of unexpected or expensive repairs, like replacing the lift.

How much does leasehold buildings insurance cost?

Buy buildings insurance for less than £198 per year^[1]

Get combined home (buildings and contents) insurance for less than £213 per year^[2]

^[1] 51% of our customers were quoted less than £198.00 for their buildings home insurance in March 2025.

^[2]51% of our customers were quoted less than £212.95 for their buildings and contents home insurance in March 2025.

What do I need to get a quote?

To get a leasehold buildings insurance quote, we’ll need to know some basic information about your home, including:

Type of property
When it was built
Home insurance claims history
Security features
How many rooms it has
The rebuild cost.

When you compare with us, we have a calculator to help you work out the rebuild cost of your home.

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What our expert says...

“If you haven’t already, it’s worth checking the details of your lease to see if you’re responsible for contributions towards maintaining the communal areas of the building. You’ll need to set up payments for this if you haven’t done so already.”

- Anna McEntee, Home, pet and travel insurance expert

Based on 28,737 reviews, customers who bought Home insurance rated our comparison service 4.7 out of 5.

Makes an onerous task so much easier

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Frequently asked questions

How do I know who is responsible for buildings insurance?

Your lease should clearly state who’s responsible for arranging buildings insurance cover and what that cover should include.

The freeholder is usually responsible for buildings insurance, which is typically included as part of the service charge. Your lease will explain how the service charge is organised and what you’ll have to pay.

What if I’ve bought the freehold of my leasehold property?

If you’ve decided to buy the freehold to your home, whether on your own or by clubbing together with other residents, you’ll be responsible for buying buildings insurance.

What if I own a leasehold house?

If you own a leasehold house, you’ll usually be responsible for getting buildings insurance. Check the terms of your lease to be sure.

Do I need building insurance for a leasehold flat?

Buildings insurance for flats with a leasehold isn’t a legal requirement. But it may be required if you’re taking out a mortgage on your leasehold flat. Your lender may want to see the leasehold insurance documents to make sure the property’s covered.

I’ve received a demand for my share of leasehold buildings insurance. Do I have to pay it?

Yes, if buildings insurance is included as part of your service charge, you’ll be expected to pay it. Paying a proportion of the freehold’s buildings insurance may be a condition of your leasehold contract, in which case you’ll be legally obliged to pay.

I think the freeholder is charging me too much for insurance. What are my rights?

If you think you’re being charged over the odds for your buildings insurance, you’re within your rights to ask your freeholder for a copy of the insurance policy.

The freeholder must reply to your written request for a summary of the policy within 21 days. If they don’t, they’re committing an offence and could be fined up to £2,500.

If you’re not happy with the cover and the freeholder isn’t prepared to negotiate, you could choose to take them to a housing tribunal. At a tribunal, an independent judge will decide the outcome.

What other insurance do I need as a leaseholder?

Along with buildings insurance, you might want to think about home contents insurance. This can cover the cost of replacing the belongings in your home if they’re destroyed, damaged or stolen.

If you need to buy both, you may find it cheaper to combine your buildings and contents insurance in one policy. This might also make it easier if you needed to make a claim.

Will insurance cover a water leak from the upstairs flat?

If the upstairs leak is from communal pipes serving more than one flat, it will usually be the responsibility of the freeholder. In this case, any structural damage to your flat should be covered by the service charge or buildings insurance.

You’ll need to claim for any damage to your belongings on your home contents policy.

If your upstairs neighbour is responsible for the leak from their flat, they are responsible for paying the repair costs.