Buildings Insurance for Flats

Buildings Insurance for Flats

If you own a flat and want to rent it out then the insurance policies that are open to you may not all be the same. Many flats, especially those in blocks, come with special leases. You may be given part of/ownership of your lease by the freeholder when you purchase your flat but you may not own it outright for all time. This kind of scenario can affect your options when it comes to taking out buildings insurance for flats cover. So, do you need it?

To be honest this depends on the individual flat and the leasehold agreement that each flat owner has with the freeholder. In some cases the freeholder will be an individual or business who will manage the general upkeep of the block itself. In others flat owners may club together to buy the freehold themselves. This can make buildings cover for flats a little different than those given out for houses.

If you buy a flat in a block and plan to live in it then the chances are you will pay management/service charges. These charges usually contain an element that goes towards the cost of buildings insurance so you may not need a separate policy. So, what happens if you then decide to move out and rent your flat out? Do you need to buy separate cover?

In many cases as long as your management/service charges continue to be paid then you will get the standard buildings insurance for flats cover that you got when you lived in your flat. So, for example, the payment of the management/service charge may remain the same and give the same benefits whether you live in your flat or whether you rent it out. You may, however, want to check out the terms of the lease agreement that you have to make sure that it will still be valid if you rent out your flat.

But, if you are starting up as a landlord, even with just this one property, then you may want to consider other options as well. For example, you may want to remember that protecting your interests as a landlord may not just be about making sure that you are covered for buildings insurance. You may also want to look at contents insurance and cover that can protect you and your income when you look at buildings insurance for flats options.