If you let out a leasehold flat, you usually don't need buildings insurance, because the freeholder insures the whole block under the lease and you pay your share through the service charge. What you do need is cover for the things the block policy doesn't: your contents and any fixtures you've added, your own liability as a landlord, and optionally loss of rent, legal expenses and rent guarantee.
The gaps are in the detail, so the first step is to read two documents: your lease and the freeholder's policy summary. This guide explains what to look for. For a general overview of landlord cover, see our landlord insurance UK guide.
Step one: read the lease
Your lease tells you:
who insures the building (usually the freeholder or a management company),
what counts as "the building": often the structure, common parts and sometimes the original fixtures inside each flat,
whether you need consent to let (some leases require the freeholder's permission or notice before you sublet),
any restrictions on use, such as bans on short lets or business use,
your repairing obligations, which affect what you may need to insure.
If you have a mortgage, your lender will also need to consent to letting. Letting without consent can breach your mortgage and may affect cover.
Step two: get the block policy summary
As a leaseholder you're entitled to ask for a summary of the building insurance. Since 31 December 2023, FCA rules for multi-occupancy building insurance also require brokers and insurers to treat leaseholders as customers and give them information about the policy, including how the broker is paid, on request.
Ask for:
the sum insured and what it covers,
the excess, and whether leaseholders pay it,
whether loss of rent is included for flats that are let,
whether landlord's fixtures and fittings inside the flat are covered (kitchens, bathrooms, flooring),
whether tenants are noted or accepted (some block policies have conditions about letting),
the claims process.
What the block policy usually doesn't cover
Your contents. Furniture, white goods, carpets or curtains you supply to the tenant.
Improvements you've made. A new kitchen or bathroom may not be covered under the block policy if it goes beyond the original specification.
Your liability as a landlord for injury or damage inside your flat. The block policy may include liability for common parts, but not necessarily for what happens inside your flat.
Your loss of rent if the flat becomes uninhabitable, unless the block policy specifically includes it.
Legal expenses for disputes with your tenant.
The excess, which leases sometimes pass to the leaseholder whose flat caused the claim.
What landlord cover to buy
A typical package for a leasehold flat landlord includes:
Landlord's contents for items you supply,
Landlord's fixtures and improvements, if the block policy doesn't cover them,
Property owners' liability (often £2 million or more), covering your liability as the landlord,
Loss of rent, if not already included in the block policy,
Optional legal expenses and rent guarantee. See our rent guarantee insurance guide.
Your tenant should have their own contents insurance for their belongings.
Escape of water between flats
Leaks between flats are among the most common claims in blocks. Typically:
damage to the structure is claimed on the block policy,
damage to your contents is claimed on your landlord contents policy,
damage to the tenant's belongings is claimed on the tenant's own policy,
the excess may fall on the flat where the leak started, depending on the lease.
Keep the flat's plumbing maintained, tell your tenant how to turn off the water, and report leaks quickly.
Safety and compliance still apply to you
Even though the freeholder insures the building, you're responsible for safety inside the flat you let:
annual gas safety checks for any gas appliances,
a five-yearly electrical installation condition report (EICR),
smoke alarms on each storey and carbon monoxide alarms where required,
a valid EPC, which the government plans to require to reach band C by 1 October 2030 (the regulations haven't been made yet) (see our EPC C 2030 guide).
Our landlord safety certificates checklist has the full list.
If you own the freehold or run the block
If you own the freehold, share it through a right to manage or residents' management company, or let several flats in the same building, you're buying a different product, usually called block of flats insurance.
Who insures what: a quick guide
Every lease is different, but a typical split for a leasehold flat looks like this:
The structure, roof, external walls and common parts: the freeholder's block policy, paid for through the service charge.
Your kitchen, bathroom and fixtures: often included in the block policy as part of the "building", but check the lease and policy wording. Some blocks treat upgraded fixtures as the leaseholder's responsibility.
Your furniture, carpets and white goods in a furnished let: your own landlord contents policy.
Lost rent while the flat is uninhabitable: sometimes in the block policy, often limited. Your own landlord policy may add it.
Liability for injury inside your flat: your own property owner's liability cover.
Legal costs for tenant disputes and rent arrears: your own legal expenses or rent guarantee cover. See our rent guarantee insurance guide.
What to do when there's a leak
Stop the water if you can and tell the tenant to do the same.
Contact the managing agent, who usually deals with block claims.
Tell your own insurer if your contents or rent are affected.
Keep photos, receipts and a record of who you spoke to and when.
Check whether you'll pay the block policy's excess. Many leases pass it on to the leaseholder whose flat caused the leak.
The Renters' Rights Act applies to leasehold flats let on assured tenancies just as it does to houses. See our Renters' Rights Act guide.
Frequently asked questions
Do I need buildings insurance for a leasehold flat I rent out?
Usually not, because the freeholder insures the building. Check the lease. You still need cover for contents, fixtures you've added and your liability.
Does the freeholder's insurance cover my tenant?
It covers the building. It doesn't cover your tenant's belongings, and it may not cover your liability as their landlord.
Can I use home insurance for a flat I let?
Usually not. Home contents policies normally don't cover a let property. You need landlord contents cover.
Do I need the freeholder's permission to let my flat?
Check your lease. Some require consent or notice before subletting. Your mortgage lender will also need to agree.
Who pays the excess if a leak from my flat damages the flat below?
It depends on the lease and the block policy. Some leases pass the excess to the leaseholder whose flat caused the damage.
Can I see how the block insurance broker is paid?
Yes. Under FCA rules in force since 31 December 2023, leaseholders can ask for information about the policy and the broker's remuneration.
Send us your lease and block summary
Send us your current landlord policy or renewal, plus the block policy summary if you have it, and we'll review it and come back with quotes from the insurers on our panel. Start with your buy-to-let details.
Meshed is a trading name of Mesh'd Limited, authorised and regulated by the Financial Conduct Authority (FRN 1033248). We charge a flat 10% broker fee. This guide is general information, not legal advice.
Vincent Liu
Co-founder & CTO
