Freeholder Building Insurance

If you own the freehold of a property, you own the building and the land on which it stands outright and for as long as you choose, and are free to sell it or bequeath the property in your will just as you see fit.

As the owner of the freehold property, therefore, you have the right to:

• occupy it yourself as your principal place of residence;
• use it as your second home  or holiday home;
• let it to tenants under a tenancy agreement of your choosing; or
• grant a lease to leasehold tenants – leasehold property is perhaps most commonly encountered as a form of tenure for flats.

Whatever the type of tenure, however, as the outright owner of the property, you are likely to be seeking freeholder insurance or freehold insurance or freeholder buildings insurance.

Freeholder buildings insurance is a specialist insurance that provides cover for you as the owner of a property againts risks like fire, lightning, earthquake, explosion, escape of water, flood, storm, theft , malicous damage depending on the level of cover.

What is a freeholder?

A freeholder owns a property and the land it stands on outright, indefinitely, with not time limit. The freeholder has ultimate control and is responsible for maintainance and manangement of common areas. In the case of a multi-unit property ( e.g ., block of flats) the freeholder may collect service charges, and ground rent from leaseholders.

Some key aspects :

• Full ownership
  • You own both the building and the land, not a time‑limited interest.
• Responsibility
  • You are responsible for repairs, upkeep, and maintenance of the property and land.
• Insurance and management
  • You typically arrange buildings insurance and manage shared areas and services.
• Charges to occupants
  • In properties with leaseholders, you may collect service charges and ground rent to cover costs.
• Control and compliance
  • You make decisions about the property’s management, subject to legal obligations and any lease terms granted to others.

In practice, most houses are commonly sold as freehold while flats are usually a leasehold, with a separate freeholder/landlord managing the building and common parts.

What does freeholder buildings insurance cover?

• Cover against loss or damage to the structure and fabric of the building;
• Cover for any contents which continue to be owned by the freeholder;
• Property owner’s or landlord’s liability insurance – to provide indemnity against claims from leaseholders, tenants, their visitors or member of the public who allege that some breach of your duty of care has resulted in their suffering an injury or having their property damaged in some way; and
• Loss of rental income or ground rent, and the provision of alternative accommodation, if a major insured event leads to the property becoming temporarily uninhabitable.

Some policies would also be able to cover for:

• Subsidence, or landslip
  – Theft and/or attempted theft
  – Malicious damage
  – Leaking pipes causing water damage

How much is freeholder insurance?

The cost of freeholder building insurance varies widely.  Premiums can start  from around £200 and can go up to £500 or more, per year, especially for block of flats insurance. Your exact price depends on the property size and value, location, level of cover, the rebuilding cost of the property,  any claims , and some other influencing factors. To get an accurate quote just give us a call on 01325346327.

Why do you need freeholder insurance?

The property on which you own the freehold is likely to represent an investment of considerable value.

You want to protect it, therefore, against the wide range of risks and perils to which any property is exposed and rely upon an insurance policy to provide sufficient compensation for repairing any damage caused by those risks – in the most extreme case, enough to cover the cost of the complete rebuilding of your property.

Freeholder insurance therefore typically protects both the structure and fabric of the building and its contents against such risks as fire, flooding, storm damage, smoke damage, impacts, vandalism and theft. Some policies can also include Subsidence , heave, landslip.

What you need to know when buying cover

The property you own might be occupied by yourself or leased or let to tenants. Your freeholder insurance needs to reflect the use.

If you are the owner occupier, many standard forms of home insurance may be appropriate for safeguarding the structure and fabric of the building and the contents within it.

If you are granting a lease or letting your property to tenants, however, your freehold insurance needs to recognise this particular use – and the risks and perils that go with it. A property which is leased or let to others may face quite different risks and perils to those when it is occupied by its owner.

Why choose us?

Freeholder insurance, therefore, may be somewhat more complicated and involved than arranging simple, standard home insurance.

At UKinsuranceNET we are practised in resolving any such intricacies and ensuring that you secure the insurance cover you need – as an owner occupier or landlord.

Frequently Asked Questions

Is Freeholder Insurance a legal requierment?

The short answer in UK is No, there is no general law that compels a freeholder to have buildings insurance. You might need insurance if you have a mortgage or a loan on the property. So even if it`s not strictly required it is best practice to protect the structure and common parts of the property

What’s the difference between leasehold and freehold?

Freehold vs leasehold: what’s the difference?

• Freehold: You own the property and the land outright, with no time limit. You have full control and responsibility.
• Leasehold: You own the right to use the property for a set term under a lease. The freeholder/landlord owns the land and building. You must follow the lease terms, pay any ground rent/service charges, and the lease will eventually expire unless extended.

What is a freeholder liable for?

A freeholder is liable for the building’s structural upkeep and overall compliance. This includes maintaining the roof, exterior, and common areas; managing finances for repairs via service charges; and ensuring the property meets health and safety regulations. The exact duties are set out in the lease agreement and relevant legislation.

What insurance do I need with a leasehold?

If you own a property and you are the leaseholder, then usually you would only need to insure your personal belongings. You should check your lease to confirm responsability.