UK Freeholder Insurance Quotes
Freeholder Insurance
Buildings cover for the whole block and common parts, arranged by the freeholder and recovered through the service charge.
Why compare freeholder cover here?
- Weigh up freeholder, RMC and managing-agent quotes in one place
- Works for blocks of flats, houses converted into flats and mixed-use blocks
- Compare quotes from UK insurers
What is freeholder insurance?
Freeholder insurance is buildings insurance arranged by the freeholder for a building held on long leases, most often a block of flats, a house converted into flats, or a mixed-use block with flats over shops. Under the lease the freeholder must insure the whole building and the common parts (roof, foundations, external walls, hallways, stairwells, landings, lifts, boiler rooms, bin stores and grounds) for their full rebuild cost, while the leaseholders own and occupy the individual flats. The freeholder pays the buildings premium and recovers it from the leaseholders through the service charge, so the sum insured has to be right for every flat owner who funds it. A standard home or landlord policy will not answer a claim on a block held on long leases, which leaves both the freeholder and the leaseholders exposed to a structural or common-parts loss.
Few duties in UK property are as easy to overlook as the freeholder's obligation to insure. The freehold of a purpose-built block of flats, a Victorian house split into flats or a parade with flats above the shops carries a responsibility set out in the lease: insure the entire structure and the shared, retained parts for what it would cost to rebuild them, not for the market or resale value of the flats. Insurers treat a ten-flat modern block, a three-flat conversion and a mixed-use building very differently, which is why a specialist broker placement usually works better than a mainstream comparison run.
Cover can be arranged by an individual freeholder, a Residents' Management Company, a Right to Manage company, a share-of-freehold group, or a managing agent acting for them, and the policy should name the correct insured party and note the leaseholders' and their lenders' interests. Freeholder insurance sits within the wider field of commercial property insurance, yet it does a distinct job: it insures the whole building and the common parts the freeholder retains, while each leaseholder insures the contents inside their own flat, so the two policies sit side by side. A block let on long residential leases is a different job again from commercial landlord insurance, which covers premises let to business tenants.
The brokers on our panel place blocks of flats and freehold buildings day in, day out. They know the gap between the rebuild cost of the whole block and the value of the individual flats, why every flat and all the common parts have to be declared, and how flat roofs, listed status, cladding and the number of flats shift the picture. Under-insuring the block can trigger the "average" condition and leave a shortfall that falls back on the leaseholders through the service charge, so the sum insured is set against a proper reinstatement assessment rather than a rough estimate.
Related property cover
How freeholder insurance works
Describe the block
Share the building type, the full rebuild sum for the whole block and common parts, the number of flats, the postcode, how it is built and any flat roofs or cladding, and who arranges the cover. Accurate answers bring back sharper quotes from the underwriting panel.
Weigh up specialist quotes
Your details reach brokers who rate blocks of flats and freehold buildings every working day. They price the buildings, property owners' liability, loss of ground rent and alternative accommodation against your block rather than a generic profile.
Set it up and recover through the service charge
Settle on cover that meets the lease, name the correct insured party, whether a freeholder, an RMC, an RTM company or a managing agent, and note the leaseholders' and lenders' interests. The buildings premium is then recovered from the leaseholders through the service charge.
What does freeholder insurance cover?
Freeholder insurance is buildings cover for the whole block held on long leases. It insures the entire structure and the shared parts the freeholder retains, adds the liability and income lines a communal building needs, and can be arranged by an individual freeholder, an RMC, an RTM company or a managing agent. Cover is placed through FCA-regulated UK brokers on the MyMoneyComparison.com panel.
The whole building and the common parts, on a rebuild basis
The freeholder's core duty is to insure the entire structure and the shared areas for the full cost of rebuilding, not the market or flat values. That takes in every flat and the parts the freeholder retains and controls, against fire, flood, storm, escape of water, subsidence, malicious damage and theft, with site clearance and professional fees built in.
- Roof and foundations
- External walls
- Hallways and stairwells
- Lifts and boiler rooms
- Bin stores
- Grounds and boundary walls
Property owners' liability
Legal liability for injury or damage arising from the retained and common parts the freeholder controls, such as communal areas, the roof, lifts and grounds, usually to a substantial limit.
Loss of ground rent and alternative accommodation
Replaces lost ground-rent income and meets the cost of alternative accommodation for leaseholders if the block is left uninhabitable after an insured loss.
Contents of the common parts and the freeholder's fixtures
Carpets, lighting, communal furnishings and the fixtures the freeholder owns in the shared areas, alongside the fabric of the block itself.
Optional cover to add
Extend the policy to match the block and the party that arranges it.
- Directors' and officers' cover for an RMC or RTM board
- Engineering and lift inspection
- Terrorism
- Subsidence
What freeholder insurance does not cover
A freeholder policy insures the whole block and the common parts, not everything inside every flat. Cover is priced around what you declare: the building type, the number of flats, the full rebuild sum, how the common parts are looked after and whether any flats stand empty. Drift outside those facts and the cover can fall away. Reading the limits matters as much as reading the cover, because under-insurance, long-empty flats and facts left off the proposal are the three most common reasons a block claim is cut back or turned down.
Wear, tear, gradual deterioration and defects
Loss caused by age, general deterioration, poor upkeep, a slowly operating cause, rot, damp or corrosion falls outside the policy, as do unrepaired defects and faulty workmanship. Keeping the fabric of the block and the common parts in good order is the freeholder's job. Cover answers sudden, one-off events, not damage that builds up over months or years.
Flats empty longer than the agreed period
Standard wordings usually allow 30, 60 or 90 days empty before cover on a flat drops back to fire, lightning and explosion alone. Leave a flat unoccupied past that point without an unoccupied extension in place and you lose escape of water, theft, malicious damage and accidental damage protection on that part of the block.
Undisclosed material facts
Listed status, past subsidence, earlier flooding, asbestos, the cladding type, the number of flats, any commercial units at ground level and previous claims all have to be told to the insurer at quote and again at renewal, whether the cover is arranged by the freeholder, an RMC, an RTM company or a managing agent. Under the Insurance Act 2015 a claim can be reduced or refused, and the policy voided, where those facts are misrepresented.
Under-insurance and low rebuild sums
Set the buildings sum below the real rebuild cost of the whole block and the average clause bites, cutting the payout in line with the shortfall. Insure the block at 75% of its rebuild figure and each claim is met at roughly 75%, and that gap falls on every leaseholder who funds the premium through the service charge. Always work to the full rebuild cost of the entire building, not the market or flat values.
Leaseholders' own contents and internal works
The freeholder policy covers the building and the common parts, not the belongings, furniture and internal contents each leaseholder keeps inside their own flat, which sit under the leaseholder's own contents cover. Damage caused while a leaseholder is altering or fitting out their flat, and their own improvements, also fall outside the block policy.
Subsidence excess, flood history and terrorism
Subsidence is usually covered but carries its own separate excess, and where the block has already claimed for flood or subsidence insurers often strip those perils out at renewal or attach a raised excess. Terrorism is commonly left off the standard wording and has to be added as an option, which matters for larger blocks and city-centre buildings.
What is excluded shifts from insurer to insurer and block to block. Read the wording on empty-flat limits, the rebuild sum, subsidence and terrorism options and disclosure closely before you commit. For more on blocks with flats standing empty, see our unoccupied commercial property insurance guide.
Building types and who arranges cover
The blocks freeholder insurance is built for
Freeholder cover fits any building held on long leases where the freeholder must insure the whole structure and the common parts. The shape of the block changes the sum insured and the rating, and the party named on the policy changes with how the freehold is held.
01
Purpose-built block of flats
A block built as flats, from a low-rise conversion to a larger apartment building, with shared entrances, hallways, stairwells, lifts and grounds. The freeholder insures every flat and all of the common parts as one whole building.
02
House converted into flats
A period or family house split into two or more self-contained flats on long leases. The original structure, the shared hallway and the roof are all insured together, and the conversion work changes how the rebuild cost is assessed.
03
Mixed-use block, flats over shops
Flats or offices held on long leases above a shop, cafe or other commercial unit. The policy bridges the residential upper floors and the commercial ground floor in one buildings sum insured for the whole block.
04
Small development or estate with shared grounds
Several buildings or a terrace of flats on one estate, with shared roads, parking, gardens, boundary walls and lighting. Cover takes in each block and the communal grounds the freeholder retains across the site.
Who arranges the cover
The insured named on the policy depends on how the freehold is held and who manages the block. Getting the correct party named keeps the cover valid and lets the premium be recovered through the service charge.
- FreeholderIndividual freeholderOwns the freehold and insures the block directly.
- RMCResidents' Management CompanyA company run by the leaseholders to manage the block.
- RTMRight to Manage companyLeaseholders who have taken over management under RTM.
- ShareShare-of-freehold groupFlat owners who jointly hold the freehold between them.
- AgentManaging agentAppointed to arrange and administer cover for the above.
Whichever party holds and manages the freehold, compare freeholder insurance quotes and name the correct insured on the policy.
Insure the whole block for its full rebuild cost
The lease requires the freeholder to insure the entire building and the common parts for what it would cost to rebuild, then lets the premium be recovered through the service charge. Set the sum insured to the wrong number and every leaseholder who funds the block feels it. Here is how the figure is built and why it matters.
Insure the whole block, not each flat on its own
The freeholder insures the entire building as one, every flat plus the shared structure, so the block is reinstated as a whole after a loss. Leaseholders do not insure the fabric of their own flats separately under this policy.
Use the rebuild cost, not the market or flat value
The sum insured is the reinstatement cost, what it would cost to demolish and rebuild the block at today's labour and materials rates, with site clearance and professional fees. That figure differs from what the flats would sell for, because the land is never lost in a fire or flood.
Include the common parts in the figure
Roofs, foundations, external walls, hallways, stairwells, lifts, boiler rooms, bin stores and boundary walls all form part of the rebuild. Leaving the common parts out of the assessment is a common way a block ends up under-insured.
Under-insurance triggers "average" across the leaseholders
If the block is insured for less than its full rebuild cost, the insurer applies "average" and cuts every settlement in proportion to the shortfall, not only a total loss. Because the premium and any shortfall run through the service charge, that gap is spread across all of the leaseholders who fund the block.
Recover the premium through the service charge
The freeholder pays the buildings premium and recovers it from the leaseholders through the service charge. The sum insured has to be right for every flat owner who ultimately funds it, which is why the rebuild figure is reviewed each year.
Insure the block for 80% of its rebuild cost, meet 80% of every claim
This is an illustrative example, shown in % only. If the sum insured covers just 80% of the true rebuild cost of the whole block, "average" cuts the settlement to roughly 80%, and the same haircut hits a small escape-of-water repair as hard as a major fire.
Get the rebuild figure right
Base the sum insured on a professional reinstatement cost assessment for the whole block from a RICS surveyor, take in the common parts, and review it each year as building costs move. Compare freeholder insurance quotes once the rebuild figure is set.
What impacts freeholder insurance costs
Premiums on a block of flats spread wider than on almost any other property cover. A modern, two-flat converted house sits in a completely different band to a large purpose-built block with a lift, communal areas and shops at ground level in a flood-risk postcode. Knowing which factors push the price up or down helps the freeholder, RMC or managing agent ask sharper questions before buying.
Give the insurer an accurate picture of the block, the number of flats, the full rebuild sum and how the common parts are managed right at quote stage. Appetite for blocks of flats varies more than in almost any other line of UK insurance. Some insurers steer clear of large blocks, certain cladding types, converted flats or buildings with commercial units below, while others build their book around exactly those risks. Specialist brokers know which insurer suits which profile, which is why the same block can come back with quotes far apart. Full disclosure points you at the right specialist rather than a declined application further down the line.
MMC Freeholder and Block Insurance Specialists, FCA-authorised (reg. 916241)
Building type and construction
A standard brick-and-block block rates very differently to timber frame, composite cladding, flat roofs or listed fabric. The age of the building, its height, whether it has a lift, build quality and the type of roof all feed straight into the underwriter's decision.
Whole-block rebuild and sums insured
A block is rated first and foremost on the full rebuild cost of the whole building and its common parts, not on the market or flat values. Loss of ground rent and common-parts contents sums add on top. The higher the sums declared, the higher the premium, and above set thresholds a survey is usually called for.
Number of flats and how the block is used
A small converted house of flats, a large purpose-built block and a block with empty flats each rate on their own basis. Any commercial units at ground level add their own loading too: takeaways, pubs and salons below the flats sit in restricted-appetite territory that many mainstream insurers decline.
Postcode, flood zone and crime risk
Environment Agency flood zones, subsidence-prone ground, crime-heavy postcodes and closeness to past flood events all feed into the rate. In higher-risk postcodes, flood and subsidence cover can carry sizeable separate excesses on the block.
Claims history and empty flats
Earlier fire, flood, subsidence or theft claims on the block push the premium up and can bring raised excesses or excluded perils. Loadings for empty flats, listed status and asbestos all come into the picture once a survey is done.
Security, alarms and fire protection
A monitored intruder alarm, BS5839 fire detection in the common parts, BS EN standard locks on communal entrances, CCTV with off-site recording and up-to-date electrical certificates for the block all bring the premium down. Well-protected common parts are one of the clearest ways to keep the rate in check.
Each block is rated on its own construction, number of flats, location and risk management. Compare freeholder insurance quotes to see how your building, its common parts and its security arrangements shape the premium across our specialist broker panel.
Choose your freeholder cover level
Cover for a block of flats is built up in layers, and most policies group those layers into three levels. Which level fits turns on the rebuild sum for the whole building, the common parts the freeholder retains, whether there is a lift and whether an RMC or RTM board runs things. Most freeholders and residents' companies land on the Standard package, which stacks property owners liability, loss of ground rent and common-parts cover on top of the buildings core.
Buildings only
The floor for any freeholder. The whole building and common parts at full rebuild value against the usual insured perils, with no liability, no ground-rent protection and no common-parts contents. It fits only a narrow set of cases, such as a bare freehold ground-rent investment held by an experienced investor.
- Whole building and common parts at rebuild
- Fire, flood, storm and theft
- Property owners liability
- Loss of ground rent and accommodation
- Common-parts contents
Standard freeholder cover
The realistic starting point for most freeholders, RMCs and RTM companies. On top of the buildings core it adds property owners liability, loss of ground rent and alternative accommodation, an accidental damage extension and common-parts contents. This is where the bulk of UK blocks sit, and the shape most insurers quote by default.
- Everything in Buildings Only
- Property owners liability £2m+
- Loss of ground rent and accommodation
- Common-parts contents and fixtures
- Accidental damage extension
Comprehensive plus extras
Built for larger blocks carrying more exposure. On top of Standard it brings engineering and lift inspection, terrorism, legal expenses and directors' and officers' cover for the board. It suits large purpose-built blocks, buildings with a lift, listed blocks and any block run by an RMC or RTM company.
- Everything in Standard
- Full common-parts contents
- Engineering and lift inspection
- Terrorism cover via Pool Re
- Legal expenses and D and O for the board
| Cover feature | Buildings | Standard | Comprehensive |
|---|---|---|---|
| Whole building and common parts at rebuild | |||
| Fire, flood, storm and theft | |||
| Property owners liability | |||
| Loss of ground rent and accommodation | |||
| Common-parts contents and fixtures | |||
| Accidental damage extension | |||
| Directors' and officers' cover (RMC/RTM) | |||
| Engineering and lift inspection (LOLER) | |||
| Terrorism cover via Pool Re | |||
| Legal expenses and leaseholder disputes |
What sits in each package, and which extras are optional, differs between insurers. Compare freeholder insurance quotes to see what each level includes for your building type, number of flats and how the block is run.
How much does freeholder insurance cost?
A freeholder premium turns on the full rebuild cost of the whole building, the number of flats, the building type and the claims history, because the policy insures the entire block and its common parts rather than one home. Rather than quote figures that would not match your building, the guide below shows where lower, middle and higher freeholder profiles sit and what moves a premium up or down. The premium is normally recovered from leaseholders through the service charge.
A freeholder premium is built from the full rebuild cost of the whole building including common parts, the number and size of the flats, the construction and age, the property owners' liability limit for the retained areas, the loss of ground rent and alternative accommodation cover, and the claims record. A small house converted into a couple of flats sits at the lower end. A purpose-built block of several flats sits in the middle. A large block, a mixed-use block with commercial units, or one with prior claims or non-standard construction sits at the higher end and is individually underwritten. Every premium is set to the building, so comparing the whole broker panel is how a freeholder, RMC or managing agent finds the right price to recover through the service charge.
A house split into a few flats
where a small freehold sits
A house converted into two or three flats, standard construction, a low-risk postcode and a clean record. The whole building on a rebuild basis, the common parts, property owners' liability and loss of ground rent.
Premium moves with- Whole-building rebuild cost
- Number of flats and construction
- Postcode, security and claims history
A block of several flats
a typical freeholder or RMC building
A purpose-built block of several flats with communal halls, stairs and grounds, arranged by a freeholder, an RMC or a managing agent. Cover carries the whole building and common parts, property owners' liability, loss of ground rent and alternative accommodation for leaseholders.
Premium moves with- Rebuild cost of the whole block
- Number of flats and communal areas
- Lift, roof and liability limit
Larger or mixed-use building
individually underwritten by specialist insurers
A large block, a mixed-use building with flats over shops or commercial units, non-standard construction, or a building with prior claims. Case-rated by specialist insurers against the whole building rather than a standard table.
Premium moves with- Building size and commercial units
- Construction, height and cladding
- Claims history and liability limit
A freeholder policy insures the whole building at its full rebuild cost, the common parts, property owners' liability for the retained areas, and loss of ground rent with alternative accommodation for leaseholders. The rebuild cost of the block is the biggest factor, because a small converted house rates very differently from a large purpose-built or mixed-use block. Communal features matter too, since lifts, flat roofs, commercial units and the height and construction of the block all feed into the terms. Getting the rebuild sum insured right for the whole building protects every leaseholder, because under-insurance triggers "average" and spreads a shortfall across the flats. Naming the correct insured party, whether a freeholder, RMC, RTM company or managing agent, and noting leaseholders' and lenders' interests keeps a claim valid.
Important: This page describes what drives a freeholder premium rather than quoting figures, because a premium can only be set against your building, its rebuild cost, the number of flats and its claims record. Nothing here is a quotation or an offer of insurance. Actual premiums vary by rebuild cost, number of flats, construction, building type, liability limits, communal features and claims history, so always compare several quotes before you buy. MyMoneyComparison.com Ltd is authorised and regulated by the Financial Conduct Authority, FCA registration number 916241.
Premiums are individually quoted. Compare freeholder insurance quotes to see what your specific building, number of flats and rebuild cost price at across the MyMoneyComparison.com broker panel.
When freeholder insurance claims get paid, and when they get declined or reduced
The large majority of block claims settle without a fuss. Where one is cut back or turned down, the cause sits on a short and familiar list: the whole building was insured below its full rebuild figure, a flat stood empty longer than the schedule allowed, a material fact was never mentioned, or a commercial unit or cladding type the policy never recorded. Whether the freeholder collects the full amount or a reduced one is, in practice, settled at the quote stage rather than on the day of the loss, and any shortfall falls on the leaseholders through the service charge.
| Scenario | When the claim is paid in full | When the claim is reduced or declined |
|---|---|---|
| Fire damage to a block of flats | Paid The whole building is insured at its current full rebuild figure, the block details match what the schedule records, communal electrical and fire risk assessments are in date, and loss of ground rent and alternative accommodation are set to a sensible indemnity period. | Reduced Where the whole-block rebuild figure falls short of the real cost, the average clause bites and the payout is scaled back across every leaseholder. A commercial unit or cladding type never declared can remove cover altogether. |
| Escape of water in a flat or the common parts | Paid The flats are occupied, or still inside the vacancy window the schedule permits, the communal pipework has been kept in reasonable order, the loss is reported quickly, and the cause is a sudden burst rather than a slow, long-running leak. | Declined Once a flat has stood empty past the 30, 60 or 90 day limit, escape of water usually drops back to FLEX perils only. A gradual seep is treated as wear and tear, and neglected communal plumbing spotted during assessment counts against the claim. |
| Storm damage to roof or external structure | Paid The loss follows a genuine storm backed by wind speed and rainfall records, the block was sound beforehand, and the proportion of flat roof was declared correctly. | Declined Roof already in poor repair is put down to wear and tear, an undeclared flat roof sits outside the cover, or the weather on the day never reached the wind speed the storm definition requires. |
| Malicious damage in the common parts | Paid Malicious damage is endorsed onto the policy, the harm to the shared areas is plainly deliberate rather than everyday wear, and a police crime reference was logged when the damage came to light. | Declined The base policy carries no malicious damage endorsement, the damage is recategorised as fair wear and tear, or it is pushed back to the leaseholder responsible and the lease terms instead. |
| Subsidence cracking to walls or foundations | Paid Subsidence sits on the policy, no earlier subsidence was declared at quote, a structural engineer's report pins down the cause, and drainage and nearby trees have been kept in reasonable check. | Declined Earlier subsidence went undeclared at quote (an Insurance Act 2015 breach), subsidence was struck off entirely at renewal after a previous claim, or the movement is judged to be settlement rather than subsidence. |
| Visitor injured by a falling tile or trip hazard | Paid Property owners liability of £2m or more is on the policy, building upkeep is documented, no earlier warning about the same hazard was left unaddressed, and reasonable care was taken over the common parts. | Declined Property owners liability was left off at quote, the hazard had been flagged before and ignored, or the injury ties back to something inside a leaseholder's own flat that belongs on their own cover. |
A reduced or refused block claim nearly always comes down to one of four things: a whole-building rebuild figure set too low so the average clause applies, an empty flat running past the declared limit, a material fact left out (earlier subsidence, listed status, a cladding type or a commercial unit at ground level), or a cover line simply not chosen at quote. At claim stage, loss adjusters commonly ask for the rebuild valuation, an empty-flat timeline, the original declaration and the lease, checking the schedule lines up with the block as it really is.
Specialist freeholder and block brokers build these outcomes into the cover before anything goes wrong. Compare freeholder insurance quotes to see what sits in the policy as standard and what has to be endorsed for your own block and common parts.
How to prepare for a freeholder insurance quote
A specialist broker can rate the block accurately only when the underwriting picture is right from the outset. Spend ten minutes pulling together the building paperwork, the whole-block rebuild figure and the details of the flats and common parts before you open the form, and you get sharper quotes, far fewer follow-up calls, and stronger terms across the specialist panel.
Pull together building records and the rebuild figure
Underwriters look at the whole building first and the flats second, so have the building records to hand before you begin.
- Address, year built and how the block is constructed
- Full whole-block rebuild figure (BCIS or RICS assessment)
- Number of flats, storeys and whether there is a lift
- Listed status, cladding type, flat roof, any asbestos
Be clear on the flats, common parts and who arranges cover
Rating follows the make-up of the block and the party arranging the policy, not a one-size template.
- Number of flats and whether any stand empty
- Freeholder, RMC, RTM, share of freehold or agent
- Ground rent roll and loss of ground rent indemnity
- Common-parts security, alarms and past claims
Compare and talk to a specialist
Fill it in once and get matched with brokers who insure blocks held on long leases day in, day out.
- Quotes from FCA-regulated specialist brokers
- Purpose-built, converted, mixed-use and estates
- Property owners liability and loss of ground rent
- One form, several quotes matched to your block
Specialist and high-risk freeholder cover
Not every block fits inside a mainstream insurer's appetite. Listed and period blocks, flood-zone postcodes, buildings with a history of subsidence, blocks with empty flats, blocks with shops or restaurants below and anything built with asbestos or cladding all fall outside the standard book. Open any heading below to see how specialist underwriting handles the eight kinds of higher-risk block freeholders and RMCs raise most often.
Listed buildings and period blocks
Grade I, Grade II* and Grade II listing brings conservation duties that push the rebuild cost of the whole block well above the norm. Putting the building back like for like calls for period materials, heritage trades and sign-off from a conservation officer, which can take the rebuild figure to somewhere between 1.5 and 3 times the rate for the equivalent modern build.
Insurers who specialise in listed property rate for that conservation-grade reinstatement, the longer claims timeline and the red tape of restoring a protected structure. Mainstream insurers tend to either decline or load the terms. See our listed building block insurance guide for specialist cover.
Flood-risk postcodes and EA flood zones
Sitting in an Environment Agency Flood Zone 2 (medium risk) or Flood Zone 3 (high risk) postcode routinely brings sizeable raised flood excesses on the block, and some insurers leave flood off the policy altogether. A block with earlier flood claims meets the tightest restrictions of all.
Specialist flood underwriters mean cover can usually be found, though at markedly higher rates and with surveyor-led improvements attached. Resilience work such as raised electrics in the common parts, flood barriers and dry-flood-proofing can bring excesses down and open up cover that would otherwise be refused.
Subsidence history and clay soil postcodes
A previous subsidence claim on the block, a clay-soil postcode (parts of the South East and South West especially), or mature trees standing close enough to affect the foundations will all draw underwriting restrictions. After a prior claim, subsidence is frequently dropped from the cover at renewal, and any remaining subsidence cover usually carries its own separate excess.
Specialist insurers can still take on subsidence where the movement has been stabilised, engineering reports back up the cause, and monitoring stays in place. Mainstream insurers usually apply a blanket subsidence exclusion once there is any claim history.
Empty and unoccupied flats in the block
Most standard policies allow 30, 60 or 90 days of vacancy before cover on a flat falls back to FLEX (fire, lightning, explosion) only. Left empty beyond that without dedicated unoccupied cover, a flat loses escape of water, theft, malicious damage and accidental damage completely, and that is exactly when most empty-flat claims happen.
Specialist unoccupied underwriters write dedicated cover sized to the reason for the void, whether between leaseholders, mid-renovation, awaiting sale or in probate. They ask for documented inspections, the water system drained down and security in place. See our unoccupied flat insurance guide.
Blocks with shops or restaurants below
A mixed-use block with flats over a restaurant, takeaway, pub or shop sits in a restricted part of the market. The commercial unit below brings a higher fire load (commercial kitchens, deep-fat fryers, late-night trading) that raises the risk to the flats above, and mainstream block insurers often decline the whole building because of the trade at ground level.
Specialist underwriters rate the block as a whole, weighing kitchen fire suppression, gas safety, electrical compliance and the fire separation between the commercial unit and the flats into the price, so the freeholder can still insure the entire building on one policy.
Asbestos, cladding and composite construction
Where a pre-2000 block used asbestos in its roofing, insulation or partition walls, the Control of Asbestos Regulations 2012 bring management duties with them. Insurers want an asbestos survey, a management plan for the common parts, and notice of any disturbance to that material during repair work.
Composite-clad blocks, above all those with combustible aluminium composite material (ACM) or insulated panels, have been underwritten far more tightly since 2017, and some insurers rule out ACM-clad blocks outright. Specialist cover is still available where fire risk assessments, an EWS1 or certification of the cladding type and a remediation plan are all in place.
Flat roof and unusual construction
Once more than 25% to 30% of the block's roof is flat, insurers routinely add excesses or pare back parts of the cover. Flat roofs carry a higher escape of water and storm exposure, so insurers look for recent inspection reports and a documented upkeep routine for the building.
Timber-frame, steel-frame, prefabricated and other non-standard blocks call for specialist underwriting too. The building's age, the quality of the original work and its present condition all feed the rating, and a surveyor's inspection is often needed above set rebuild-value thresholds.
Prior claims history and larger blocks
Two or more claims on the block in the past five years, a large high-rise building, a history of fire or arson, or a commercial unit trading in a high-risk way at ground level will usually put a block beyond mainstream appetite.
Specialist insurers assess these one at a time rather than off a standard rating table. Expect surveyor inspections, risk-improvement conditions, higher excesses and a narrower list of perils. Being straight about claims and the make-up of the block at quote stage matters, because the Insurance Act 2015 makes an undisclosed material fact grounds to void the policy.
Every higher-risk block falls into its own specialist bracket. Compare freeholder insurance quotes to see how your own building, common parts and risk profile are rated across the MyMoneyComparison.com broker panel.
Who needs freeholder insurance?
Anyone who holds the freehold of a building let on long leases, or manages that block on the freeholder's behalf, needs to insure the whole structure and the common parts. The insured party named on the policy changes with how the freehold is held and who runs the block.
You own the freehold of a block of flats, a converted house or a mixed-use building and are responsible under the lease for insuring the whole structure and the common parts, then recovering the premium through the service charge.
You sit on the board of a Residents' Management Company that manages the block for the leaseholders. The RMC arranges the buildings cover and can add directors' and officers' protection for the board.
Leaseholders who have taken over management through a Right to Manage company and now handle the block's insurance, taking responsibility for the sum insured and the common parts.
Flat owners who jointly hold the freehold between them, often through a company. The group arranges one buildings policy for the whole block and shares the premium across the flats.
Investors who hold freeholds for the ground-rent income need the whole block insured and the leaseholders' and lenders' interests noted, so the asset and the income behind it stay protected.
Agents appointed to arrange and administer cover for freeholders, RMCs, RTM companies and share-of-freehold groups. The correct insured party is named and the leaseholders' interests are recorded.
Whether you own the freehold outright or manage the block for those who do, the whole building and its common parts need insuring. Compare freeholder insurance quotes and name the correct insured on the policy.
Freeholder insurance vs a leaseholder's cover and a standard policy
Freeholder insurance and a leaseholder's own cover are not rivals, they sit side by side: the freeholder insures the whole block, the leaseholder insures what is inside their flat. A standard landlord or home policy is a different thing again, and does not cover a whole building held on long leases. Here is how the three compare.
The freeholder's policy and the leaseholders' own cover work together across one block. Compare freeholder insurance quotes for the whole building and its common parts.
Cover detail shown is indicative of how UK freeholder and leaseholder policies are typically structured. It is illustrative only and is not a quotation. Sums insured, limits and exclusions vary by insurer and individual circumstances.
Insuring more than one block on one arrangement
Once a freeholder or managing agent looks after two or more blocks, separate policies on each building stop being a tidy fit. One arrangement draws every block onto a single schedule, with one renewal date and one underwriting relationship, and prices the whole book against the combined risk rather than as a stack of separate policies bought at different times.
Insuring several blocks on one arrangement puts two or more buildings on a single schedule with one renewal date and shared limits. It works for freeholders and ground-rent investors who hold more than one block, managing agents looking after several RMC or RTM clients, and share-of-freehold groups running more than one building. Premiums are case-rated against the combined risk profile, the claims record and the mix of building types, which usually lands on better terms than buying each policy on its own.
One schedule, one renewal date
Every block sits on a single schedule that renews on one date. Gone is the juggling of separate policies taken out at different times with different insurers, each running to its own renewal.
RMC, RTM and company structures
Where the blocks are held through an RMC, an RTM company or a freehold-owning company, each policy needs to be issued in the correct company name, with the directors named at quote stage. For books held across many buildings, see our property portfolio insurance guide.
Different block types on one schedule
Purpose-built blocks, houses converted into flats, mixed-use blocks with shops below and buildings with empty flats can share the same schedule. The cover copes with the different building types without splitting each one onto its own policy.
Case-rated pricing
A book of blocks is rated on its combined risk, not pulled off a standard table. Insurers weigh the total rebuild values, the number of flats, the claims record and geography to set one premium for the whole schedule.
Shared limits and aggregate cover
Property owners liability, loss of ground rent and accidental damage tend to run on limits shared across the whole book rather than fixed per block. That generally buys higher headline limits for less than the sum of separate policies.
Adding and removing blocks mid-term
You can add or drop blocks partway through the year, with the premium adjusted pro rata. A newly acquired freehold joins the schedule on completion and a sold building comes off on the day, with no wait for renewal and no separate short-term policy.
Any freeholder or agent looking after two or more blocks stands to gain from one arrangement. Compare property portfolio insurance quotes through a specialist panel used to RMC, RTM and multi-block risks.
How to reduce freeholder insurance costs
Insuring a whole block is rarely cheap, but a handful of practical moves genuinely bring the premium down without thinning out the cover or cutting corners on compliance. Because the freeholder recovers the buildings premium from leaseholders through the service charge, a lower premium is money back in every flat owner's pocket. Combine two or three of these and the saving across the block's annual renewal can be real.
Protect the common parts and entrances
A monitored intruder alarm to BS EN standards, BS5839 fire detection in the common parts and CCTV covering entrances, hallways and bin stores all cut theft, vandalism and fire exposure across the block. Recognised security and fire systems feed straight into the rate insurers offer.
Set the rebuild sum with a proper valuation
A professional reinstatement cost assessment sets the whole-block rebuild sum accurately, so the building is neither under-insured, which triggers average, nor over-insured, which wastes premium the leaseholders fund. An up-to-date valuation gives underwriters confidence and keeps the sum insured honest.
Keep the block maintained and on record
Regular roof checks, cleared gutters, communal plumbing inspections and prompt repairs to the common parts hold down escape of water and storm claims. Insurers routinely ask to see a documented upkeep routine for the building at quote and at renewal.
Keep safety certificates and inspections current
An in-date EICR for the communal electrics, gas safety checks on any communal boiler, lift inspection reports and a current fire risk assessment for the common parts show fire and safety risk is being actively managed. Many insurers want certificates no more than five years old as a baseline.
Run an inspection routine for empty flats
Weekly or fortnightly recorded inspections while a flat is empty, plus a drained-down water system, collected post and visible security, all cut the exposure during a void. An active inspection routine can open up cover on an empty flat that would otherwise be refused.
Use a specialist freeholder and block broker
Generic comparison sites struggle here because insurer appetite swings so widely by building type, number of flats and how the block is run. Specialist brokers work this market every day and rate it properly across niche insurers and Lloyd's syndicates.
The biggest savings come from stacking two or three of these together rather than relying on one. Compare freeholder insurance quotes to see what your own block, rebuild sum and risk management add up to across the specialist panel.
Specialist Freeholder Insurance
Comparing specialist freeholder insurance since 2013
MyMoneyComparison.com has been helping UK freeholders insure the whole block without the runaround since 2013. Hold the freehold of a purpose-built block of flats, own a house converted into flats, sit on an RMC or RTM board, share the freehold with the other flat owners or run buildings for clients as a managing agent, and the same specialist broker panel insures blocks held on long leases every day. Compare specialist commercial property insurance from a panel that knows full rebuild cost, common parts, property owners liability, loss of ground rent and the duty the lease places on the freeholder.
Generic comparison sites versus specialist freeholder and block brokers
Standard comparison sites are built around home insurance and single-flat cover. A block of flats held on long leases sits outside that profile, which is why specialist brokers repeatedly rate the same building more keenly and with cover that actually answers the whole-block rebuild, the common parts, property owners liability, loss of ground rent and the duty the lease places on the freeholder.
Standard home and single-flat aggregators
Geared to home insurance and cover for one flat. A whole block held on long leases is usually treated as a non-standard risk, then either turned away or priced at the loaded end of the panel without the freeholder's duty and the common parts being understood.
Typical limitations- Few or no whole-block options
- Common parts and rebuild sum handled poorly
- Empty flats often turned away
- Listed buildings and flood-zone postcodes left out
- RMC, RTM and managing-agent cases beyond the panel
Specialist freeholder and block brokers and underwriters
FCA-regulated brokers who insure blocks held on long leases day in, day out. The whole-building rebuild, the common parts, property owners liability, loss of ground rent and specialist extensions are on the policy from the start, sized to the block and the number of flats you declare.
Built around blocks and freeholders- Whole building and common parts on rebuild
- Empty, listed and flood-risk blocks catered for
- Property owners liability and loss of ground rent
- D and O cover for RMC and RTM boards
- Converted flats, mixed-use blocks and estates
A quote from a generic comparison site can look sharp yet leave out the cover lines a freeholder actually needs. Buy it and you may end up with the whole-block rebuild misjudged, an empty flat running past the declared cap, the common parts left out, or property owners liability absent from the schedule, and that is precisely the pattern that leads to reduced or refused claims under the average clause and the Insurance Act 2015. A shortfall then falls on the leaseholders who fund the premium through the service charge, so before you pay, check the schedule matches the block and the flats you genuinely have.
Compare freeholder insurance quotes with some of the UK's top providers, including:
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Everything You Need to Know
Clear answers to the questions freeholders ask most often about freeholder insurance.
What is freeholder insurance?
Freeholder insurance is buildings insurance arranged by the freeholder, the owner of the freehold, for a building held on long leases such as a block of flats, a house converted into flats or a mixed-use block with flats over shops. It covers the whole structure and the common parts on a full rebuild basis rather than the contents inside each flat. Under most leases the freeholder must arrange this cover and then recovers the premium from the leaseholders through the service charge. Property owners’ liability, loss of ground rent and alternative accommodation for leaseholders usually sit alongside the buildings section.
Who is responsible for insuring a block of flats?
In most cases the freeholder, or the party named in the lease to act for them, must insure the block. The long lease sets out who arranges the buildings cover, what it must include and how the cost is shared, so the duty flows from the lease rather than from general law. Depending on the structure the insuring party may be an individual freeholder, a Residents’ Management Company (RMC), a Right to Manage (RTM) company, a share-of-freehold group or a managing agent acting on their behalf. Leaseholders insure the contents of their own flats separately.
Does the policy cover the whole building and the common parts?
Yes. The freeholder’s core duty is to insure the entire structure together with the shared and retained areas, so the sum insured is set for the whole block, not flat by flat. Common parts usually taken in include the roof, foundations, external and structural walls, hallways, stairwells, landings, lifts, boiler rooms, bin stores, grounds and boundary walls. The cover is written on a rebuild basis so the whole building could be reinstated after a fire or flood. Fixtures the freeholder retains and the contents of the common parts can be added, while each leaseholder insures the contents inside their own flat.
Is the rebuild cost the same as the market value?
No, they are two separate figures. The rebuild cost is what it would take to clear the site and reconstruct the whole block at current prices, including materials, labour, professional fees and any work needed to meet current building regulations. Market value, and the price of the individual flats, reflects location and the leases and is usually a different number altogether. Freeholder insurance always works from the rebuild cost, because a fire or flood destroys the structure but not the ground it stands on, so the sum insured must reflect full reinstatement of the whole building and its common parts.
How is the buildings premium recovered from the leaseholders?
The freeholder pays the buildings premium to the insurer and then recovers it from the leaseholders through the service charge, in the shares the lease sets out. Because every flat owner ultimately funds the cover, the sum insured and the policy terms need to be right for the whole block, and the premium usually has to be reasonable and properly incurred. Many leases require the freeholder to arrange the insurance and allow the cost to be passed on, so the recovery right comes from the lease. Keeping the rebuild figure accurate protects both the freeholder and the leaseholders who pay for it.
Is freeholder insurance a legal requirement in the UK?
There is no general statute that forces a freeholder to insure a building, so the requirement comes from the lease rather than from the law. Almost every long lease obliges the freeholder, or the party they appoint, to insure the whole building and the common parts for the full rebuild cost and to keep that cover in place, which makes it a contractual duty owed to the leaseholders. A mortgage lender behind the freehold or behind a flat will also expect the building to be insured. Because the obligation sits in the lease, cover is arranged to match its terms.
What does property owners' liability cover for a freeholder?
This section meets compensation and legal costs if the parts the freeholder owns and controls cause injury to a person or damage to their property, for instance a visitor hurt by falling masonry, a slip in a communal hallway or a fault in a lift or boiler room. Because the freeholder retains the roof, structure, common parts and grounds, this liability attaches to those retained areas rather than to anything inside a flat. Indemnity limits are commonly written at £2m, £5m or £10m. It is a standard part of a freeholder policy and sits alongside the buildings cover.
Do leaseholders still need their own insurance?
Yes. The freeholder’s policy covers the building and the common parts, so it does not reach the contents inside a flat, and in many cases it does not cover a leaseholder’s own internal improvements either. Each leaseholder should hold their own contents insurance for furniture, belongings and, where relevant, fitted improvements, and can add contents liability. The two policies sit side by side: the freeholder insures the structure that everyone shares, and the leaseholder insures what is inside their own front door. Leaseholders’ and their lenders’ interests can be noted on the buildings policy.
Who can arrange the insurance for a block of flats?
The insurance can be arranged by an individual freeholder, a Residents’ Management Company (RMC), a Right to Manage (RTM) company, a share-of-freehold group or a managing agent acting for any of them. What matters is that the policy names the correct insured party, the one the lease makes responsible for the cover, and reflects who controls the building. An RMC or RTM company usually arranges the cover for the block through a broker or agent, while a managing agent may place it on the freeholder’s behalf. Naming the right party keeps the cover valid and the service-charge recovery clean.
What is share of freehold and how does the insurance work?
Share of freehold means the leaseholders jointly own the freehold of their building, usually through a company they control or as joint owners named on the title. The duty to insure the whole building and common parts still applies, so the group, or the company acting for them, arranges the buildings cover in the same way an outside freeholder would and shares the cost through the service charge. The policy should name the freehold company or the joint owners as the insured and note the leaseholders’ and lenders’ interests. Directors’ and officers’ cover is worth considering where a company runs the freehold.
Does the policy pay for loss of ground rent and alternative accommodation?
Most freeholder policies can include both. Loss of ground rent replaces the ground-rent income the freeholder would lose while the building cannot be lived in after an insured event such as a fire or flood, for a chosen indemnity period. Alternative accommodation covers the reasonable cost of rehousing leaseholders while their flats are uninhabitable and being reinstated, and can also cover rent a leaseholder loses if their flat is let. Both sections run for the period it realistically takes to rebuild and reoccupy the block, so the indemnity period should allow for that timescale.
What is directors' and officers' cover for an RMC or RTM board?
Directors’ and officers’ cover protects the individuals who sit on the board of a Residents’ Management Company or a Right to Manage company against claims arising from decisions they make in running the building, for instance over service charges, maintenance, health and safety or company duties. Because these directors are often leaseholders volunteering their time, the cover meets legal defence costs and awards made personally against them. It is a separate section from the buildings and liability cover and is commonly added where an RMC or RTM company holds or manages the freehold. It sits alongside the property owners’ liability that covers the common parts.
What is the average clause and how does under-insurance affect leaseholders?
Average is the clause that lets an insurer scale down a settlement when the block is insured for less than its full rebuild cost. Insure the building for only 70% of what reinstatement would take, and the payout on a claim can be cut to around 70% of the loss. It applies to modest partial-damage claims just as much as to a total loss, so a shortfall is not only a concern after a catastrophic fire. Because the leaseholders fund the cover through the service charge and rely on it to rebuild their homes, under-insurance leaves them exposed. Setting the sum insured at the full rebuild figure for the whole block is the remedy.
How do I work out the rebuild cost of a whole block of flats?
The rebuild cost is the price to reconstruct the entire building, including all flats and the common parts, at current prices with professional fees, debris removal and current building-regulation requirements. For a fairly standard block a desktop assessment using BCIS (Building Cost Information Service) rates can give a working figure, but for a larger, listed, non-standard or complex building a formal reinstatement cost assessment from a RICS-accredited surveyor is the sounder route. Revisit the figure every three to five years, and after any material change to the building, so it keeps pace with construction cost inflation and the whole block stays fully insured.
Does freeholder insurance cover the contents inside each flat?
No. The freeholder’s policy insures the structure of the whole building and the common parts, so it stops at the fabric of each flat and does not reach the furniture, belongings or personal contents inside. Depending on the lease and how the flat is defined, fitted improvements a leaseholder has added may also fall outside the buildings cover. Each leaseholder is expected to arrange their own contents insurance for what is inside their flat. The freeholder can, however, insure the contents of the common parts and any fixtures they retain, such as communal furnishings or plant.
Can leaseholders question the buildings premium the freeholder arranges?
Yes. Because the premium is passed on through the service charge, leaseholders can ask for details of the cover and, where the lease and the law allow, challenge a service charge that is not reasonable or properly incurred. Freeholders are generally expected to arrange suitable cover at a reasonable cost and to be able to show how the premium was reached. Keeping the rebuild figure accurate, placing the policy through an FCA-regulated broker and being open about any commission all help the freeholder show the cost is fair. Sound records protect the freeholder and reassure the flat owners who fund the cover.
What types of building can freeholder insurance cover?
Freeholder insurance suits any building held on long leases where one party insures the whole structure. Common examples are a purpose-built block of flats, a house converted into two or more flats, a mixed-use block with flats over shops or offices, and a small development or estate with shared grounds and access roads. The building can be modern or period, and listed buildings can be covered where the policy prices reinstatement on a like-for-like conservation basis. Whatever the type, the cover is set for the whole building and its common parts on a rebuild basis.
Are the leaseholders' and lenders' interests noted on the policy?
Yes. The buildings policy is arranged by the freeholder, but the leaseholders each hold a long lease and a financial stake in the building, and their mortgage lenders have an interest in the flats they finance, so those interests are noted on the policy. Noting them means a leaseholder or lender can rely on the cover and be taken into account in how a claim is dealt with, even though the freeholder is the policyholder. The freeholder’s own interest, and that of any lender behind the freehold, is recorded too. Naming the correct insured party and noting these interests keeps the cover aligned with the lease.
Does freeholder insurance cover empty or unsold flats in the block?
An empty flat within an otherwise occupied block is usually accommodated, but the insurer needs to know about it, because vacancy changes the risk. Where flats are unsold in a new block, undergoing works or standing empty between leaseholders, the policy may attach conditions such as regular recorded inspections, isolating or draining the water supply and agreed security. If a large part of the building is unoccupied, the cover can fall back towards fire, lightning and explosion unless dedicated terms are arranged. Tell the broker how much of the block is occupied so the whole building stays properly insured.
Do I need terrorism, engineering or lift inspection cover for a block?
These are optional sections rather than automatic ones. Terrorism cover is bought as a separately rated extension backed by Pool Re, the government-supported scheme, and is worth considering for city-centre or higher-profile blocks, sometimes as a lender condition. Engineering inspection and lift cover apply where the block has lifts, boilers or other plant that need statutory inspection and maintenance. Subsidence can be included where there is no history of ground movement. Which options a block needs depends on its location, its construction and the plant it contains, so the cover is built to match the building.
What happens to the insurance if an RTM company takes over or the freehold is sold?
When control of a building changes, the insurance needs to follow. If a Right to Manage company takes over management, or the freehold is sold or bought by the leaseholders as share of freehold, the party responsible under the lease for insuring the block changes, so the policy should be updated to name the new insured. It is worth reviewing the sum insured, the cover and the noted interests at the same time, rather than letting an existing policy simply run on in the wrong name. Arranging the cover in the correct party’s name keeps it valid and keeps service-charge recovery clean.
How do I compare freeholder insurance quotes?
Start by fixing an accurate rebuild cost for the whole block and a clear picture of the building, its common parts, any lifts or plant and how many flats are occupied, then compare quotes on the same basis so the figures are genuinely alike. Many comparison journeys are built around single homes and simple cover, so a block of flats with common parts, service-charge recovery and an RMC or RTM structure is often handled better by a broker who places this cover regularly. A specialist can reach insurers that understand blocks of flats and rate them properly. MyMoneyComparison connects you with FCA-regulated brokers of that kind and does not itself advise or sell.
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