Can a leaseholder buy buildings insurance for a leasehold property
In some circumstances, a leaseholder can arrange buildings insurance for a leasehold property they live in, rent to tenants, or for a leasehold unoccupied property.
In reality, a leaseholder for a residential property should not have to arrange buildings insurance as the vast majority of the time, the freeholder will have arranged this in line with their obligations of the lease. If they have not insured the building, your landlord / freeholder will often be in breach of the terms of the lease and you could take County Court action against them for damages and also seek to recover your legal costs.
Not all freeholders will have arranged the buildings insurance for the property, and for a number of reasons. The freeholder may have passed away, left the country, be insolvent or merely become disinterested in running the affairs of the property and decided to wash their hands of it.
If you are a leaseholder and looking to purchase buildings insurance then we can often offer a solution for you. If the freeholder has not honored their responsibilities then we can often offer you a buildings insurance policy in your own name (as leaseholder) with the insurer having been advised of the situation.
If the property is in a block of flats (anything from two or more) then it is very strongly recommended that you speak to the other leaseholders to see if a block of flats policy can be arranged. It can be arranged on the basis of the leaseholders working together to insure the property in the absence of a policy from the landlord / freeholder.
If you are not able to liaise with the other leaseholders then we can usually provide a quotation in your own name if you need cover in order to exchange contracts to purchase a property and need evidence of insurance for a mortgage. Practically, you may not know who the other leaseholders are, particularly if you are just buying the property and some of the other flats may be let to tenants.
Time may dictate that a single flat policy covering just your flat in your own name is the only practical solution. Once this is arranged we still recommend that you look at the possibility of arranging a block policy with the other leaseholders once you are able to locate them.