What does buildings insurance cover in flats?

Whether it's communal gardens or leasehold agreements, certain features make living in a flat or apartment different to individual properties. But what does that mean for your buildings or home insurance?

In this article, we’ll outline the types of flat insurance available, what this cover may include and wider factors to consider when exploring your options.

What are the different types of home and flat insurance?

Flat insurance is just another name given to home insurance, which you can take out to insure your property against risks such as floods, fire and theft. Home insurance has two different types of cover.

Buildings insurance

Building insurance for flats or houses covers damage to the structure of your home, such as the roof and walls. It can also cover various fixtures and fittings, like windows and bathroom suites.

Contents Insurance

Flat content insurance is designed to cover your possessions rather than the property itself. This includes items such as TVs, ornaments or furniture.

What’s the difference between buildings and content insurance?

One way to distinguish between these two types of home insurance is to think of buildings insurance as protection for the things you probably wouldn’t take with you if you moved, like the doors, roof or bathroom sink. Contents insurance, on the other hand, covers the items you’re more likely to pack and relocate, such as furniture.

What types of buildings insurance are available?

Alongside the standard offering, other buildings insurance options are available to suit properties with more specific uses or needs. These include:

• Commercial property insurance for buildings used for business purposes.
• Non-standard buildings insurance for buildings with custom construction of features such as thatched roofs.
• Holiday home insurance covering holiday homes for both personal use and rental to guests.
• Landlord Insurance designed for home or flat owners that rent out their properties.
• Unoccupied property insurance for properties left vacant for extended periods, usually 30 days or more.

Do you need buildings insurance on a flat?

If you live in a flat, the need to buy buildings insurance will depend on your living situation. We’ll discuss these factors in more detail below.

Do I need buildings insurance if I rent my flat?

Typically, no. The landlord or overall freeholder will be responsible for securing buildings insurance.

However, you may still find it useful to take out contents insurance, as this will provide protection for your personal possessions. And you may need to cover any furnishings that come the flat, though it is worth checking your rental agreement to see if this is the case.

Do I need buildings insurance if I own or share the freehold for my flat?

Freehold flats are harder to come across than freehold houses but they do exist. This is because owning a freehold property means you own it outright, along with the land it stands on. Clearly, as flats share that land, the ownership is more complex.

If you own or share the freehold for your flat you won’t have to pay ground rent or service charges, but you are most likely the person responsible for securing buildings insurance.

Whilst buildings insurance is not a legal requirement, it is compulsory for most mortgage providers. Citizens Advice also advises taking out buildings insurance even if you’re purchasing a property without a mortgage. This is due to the potential costs of repairing or rebuilding your home if it was damaged or destroyed.

Do I need buildings insurance if I’m a leasehold flat owner?

Most flats tend to be leasehold properties. This means you own your property but not the land it was built on.  Instead, you pay ground rent to the land owner (also known as the freeholder).

In this scenario, the freeholder or building management company tends to arrange the buildings insurance for the entire block and then charge you for your share through a service charge.  However, it’s worth checking your lease agreement to ensure this is the case.

Do I need buildings insurance if I’m a commonhold flat owner?

Commonhold is a relatively new form of property ownership designed to be an alternative to leasehold for multi-unit buildings, like blocks of flats. With commonhold, you own your unit (flat or apartment) outright and share ownership of the common areas (hallways, gardens) with other unit owners.

In this instance, a commonhold association is often established from those that own units of the building and this entity manages the maintenance, repairs and insurance for the building.

Do I need home insurance if I live in a retirement flat/development/village?

Retirement villages come in all shapes and sizes. Some may mean you live independently while others will be assisted living. The kind of arrangement you choose will impact your insurance needs.

As a first port of call, read your contract carefully. Any leaseholder agreement will detail if buildings insurance is included as part of a yearly fee. If you need to take out a policy, this will also be stated.

For contents insurance, this will probably be at your discretion. If you choose to live independently, you can shop around to find the protection that’s right for you. For those in assisted living, you’ll likely need specialist protection and should discuss your options with a provider or a member of staff in your accommodation.  

What does building insurance cover in flats?

Whilst every insurance provider will offer their own terms and conditions, and levels of cover can vary, typical buildings insurance for flats and homes will cover.

• Structural damage: this includes the main structure of the building, such as the walls and floors.
• Fixtures and fittings: permanent fixtures like kitchens, bathrooms, fitted wardrobes.
• Glass and sanitary fixtures: this includes cover for accidental breakage of glass in windows, doors, and sanitary fixtures like sinks and toilets.
• Alternative accommodation: if the flat becomes uninhabitable due to an insured event, the cost of temporary accommodation may be covered by your flat insurance.
• A level of legal liability: this covers legal costs and expenses if someone is injured or their property is damaged, and you’re held liable by the building owner.

What isn’t covered by buildings insurance?

Typically, the contents of your flat are not covered by buildings insurance, as this would fall under contents insurance. Other risks that aren’t generally covered by buildings insurance include damage caused by:

• General wear and tear
• Poor workmanship
• Pets

What else should I look for in buildings insurance for my flat?

When researching buildings insurance for flats, it’s worth checking the coverage on offer for features more specific to this type of property, such as:

• Car parks
• Communal areas such as gyms and gardens
• Home refurbishments by flat owners

Does a person's age affect home/flat insurance?

From the size of your property to the location you live in, many factors are used to calculate the cost of your home and flat insurance. And, whilst your age is considered, it’s not the deciding factor.

For instance, you may pay less for your insurance if you’re over 70. However, this may also reflect the fact you live in an area with a lower flood risk or crime rate or are looking to insure a smaller property.

What else should I consider when buying flat insurance?

Here we list a few of the key points you may wish to consider when researching home insurance for flats.

Service levels

When an insurable incident occurs in your home, having a provider that prioritises customer service can make a real difference. From transparency of costs to availability of staff, it’s well worth delving into the details beyond cover levels before you purchase an insurance product. That way, it’s one less thing to navigate should you ever need to call on your provider in an emergency.

Optional Extras

You may wish to enhance home or flat insurance by adding on optional extras, for an additional cost, to personalise your cover to your needs. These can vary from one provider to the next but will often include legal expenses, accidental damage and home emergency cover.

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Summary

As this article highlights, knowing what home insurance options are available and how they apply to your circumstances can help you find the right protection. If you’re in a flat or moving to one, it can be helpful to keep these key points in mind:

• There are two main types of home insurance – buildings and contents.
• Buildings insurance covers the structure of your home, and is something you’ll need to arrange if you own the freehold or part of the freehold.
• Contents insurance covers personal possessions in your home. Regardless of whether you have a freehold or leasehold, or if you rent your flat, you should consider getting protection for the items you own.

To learn more about switching your home insurance with Age Co, click here.