Property insurance
Freeholder Insurance
buildings cover for a block of flats or converted house held on leases, arranged by the freeholder
Buildings cover for a leasehold block or converted house, arranged by the freeholder. Matching the policy to what the lease requires matters as much as the cover itself.
- Blocks, conversions and mixed use
- Buildings and common parts
- Freeholders and management companies
- FCA authorised and regulated
Quick answerFreeholder insurance is buildings cover arranged by the freeholder for a building held on long leases, such as a block of flats or a house split into flats. The lease usually requires the whole structure and the common parts to be insured for their rebuild figure, and the premium is often recovered through the service charge. Cover can include property owners’ liability and help for leaseholders after a loss. Tell MyMoneyComparison.com about the building once, and specialist UK brokers can come back with quotes.
This page is about freeholders insuring a building held on leases. A whole block you own and let yourself is on our block of flats insurance page, and a single flat you let on landlord insurance.
At a glance
Freeholder Cover, in Brief
Six things that decide how freeholder insurance behaves, before any of the detail.
- The lease
- Sets out who insures the building and for what
- The whole building
- Structure and common parts, for the rebuild figure
- The service charge
- How the premium is usually recovered from leaseholders
- Property owners’ liability
- Injury or damage in the common parts
- Leaseholders’ interests
- Noted on the policy, where the lease asks for it
- Lifts and plant
- Engineering cover and inspections, where needed
The basics
What Is Freeholder Insurance?
Buildings insurance arranged by the freeholder for a building held on long leases, such as a block of flats or a converted house. It covers the whole structure and the shared parts.
Buildings
The whole structure, for its rebuild figure.
Common parts
Hallways, stairs, roof, grounds and bin stores.
Property owners’ liability
Injury or damage to visitors and others.
Alternative accommodation
For leaseholders who cannot live in their flat after a loss, where included.
Engineering cover
Lifts, boilers and plant, where included.
Directors’ liability
For resident management company directors, as an extra.
How it works
How Does Freeholder Insurance Work?
The freeholder insures the whole building as the lease requires, and the premium is usually recovered from leaseholders through the service charge.
You check the lease
What it asks the freeholder to insure, against which events, and whose interests need noting.
You set the rebuild figure
For the whole building, not the value of the flats. The method is in our guide to calculating a rebuild value.
You describe the building
Construction, cladding, height, number of flats and any shops or offices within it.
You share the details
Leaseholders can ask for a summary of the cover, so keep the schedule and costs to hand.
What it covers
What Does Freeholder Insurance Cover?
The whole building and common parts, the freeholder’s liability, and help for leaseholders after a loss, with engineering and directors’ cover available on many policies.
| Section | Where it sits | What to know |
|---|---|---|
| Buildings and common parts | Core | For the full rebuild figure |
| Property owners’ liability | Core | The limit is set on your schedule |
| Alternative accommodation or loss of rent | Core or optional | Check the limit and period |
| Common parts contents | Optional | Carpets, furniture and fittings in shared areas |
| Engineering and lift cover | Optional | Breakdown and inspections |
| Directors’ and officers’ liability | Optional | For management company directors |
| Employers’ liability | Where you employ staff | Cleaners, porters or caretakers |
Leaseholders insure their own contents. The freeholder’s policy covers the building, not the belongings inside each flat.
Exclusions
What Freeholder Insurance Does Not Include
Cover can exclude leaseholders’ own contents, wear and tear, undeclared uses or features, and losses where conditions on the building were not kept.
Leaseholders’ contents
Belongings inside each flat.
Wear, tear and gradual damage
Maintenance issues and slow leaks.
Undeclared features
Cladding, a commercial unit or short lets the insurer was not told about.
Restricted perils
Such as escape of water with a higher excess or limit.
Undeclared building work
Major works need declaring or separate cover.
Empty flats beyond the period
Where the policy sets conditions for vacant units.
Types of building
Which Leasehold Buildings Can Be Covered?
A wide range of buildings held on leases, from a house split into two flats to a large block. Size, construction and use shape the terms.
Purpose-built blocks
Low-rise and taller blocks of flats.
Converted houses
Houses split into two or more flats.
Mixed-use buildings
Flats above shops or offices.
Period conversions
Older buildings with higher rebuild costs.
Retirement developments
Blocks with shared facilities.
Share-of-freehold buildings
Where leaseholders own the freehold together.
Shops or offices in the building? See our mixed-use property insurance page.
Who it is for
Who Needs Freeholder Insurance
Anyone the lease makes responsible for insuring a building held on long leases.
Individual freeholders
Owning the freehold of a converted house or small block.
Resident management companies
Run by the leaseholders themselves.
Share-of-freehold owners
Leaseholders who own the freehold together.
Freehold investors
Owning freeholds as an investment.
Managing agents
Arranging cover on behalf of a freeholder.
Right-to-manage companies
Where the lease or arrangement gives them the insuring duty.
Building or flat
Freeholder Cover vs a Landlord Policy for One Flat
A freeholder policy insures the whole building. A leaseholder who lets their flat usually still needs their own landlord cover for contents, rent and liability.
| Freeholder cover | Single-flat landlord policy | |
|---|---|---|
| What it insures | The whole building and common parts | One flat’s share or contents |
| Who arranges it | The freeholder or management company | The flat owner |
| Who pays | Leaseholders, through the service charge | The flat owner |
| Liability | Common parts and the building | The flat and its tenant |
Letting a flat in the block? See our buy-to-let landlord insurance page.
Cost
What Freeholder Insurance Is Priced On
The rebuild figure, construction and cladding, the number of flats, any commercial use, the location and the claims history. We do not print average premiums.
Why the building leads
The rebuild figure, height, construction and any cladding set the base, and a commercial unit can change how an insurer sees the risk.
Why the claims history matters too
Repeated escape of water claims are common in blocks, and they can shape both the price and the excess.
What the quote is rated on
The main factors
- Rebuild figureThe whole buildingBase
- ConstructionHeight, walls and claddingRate
- OccupancyOwners, tenants and any shopsRate
- LocationCrime and flood exposureRate
- HistoryPast claimsAdjust
Leak prevention
Plumbing checks can help with escape of water terms.
Fire safety
Alarms, fire doors and clear escape routes.
Security
Door entry systems and lighting in common parts.
The details
The Lease and Building Details That Decide a Freeholder Claim
Freeholder claims can turn on whether the policy matches the lease and the building. Four details come up again and again.
Match the policy to the lease
Insure against the events the lease lists, and note the interests it asks for, such as leaseholders or lenders.
Keep the rebuild figure current
Review it regularly, so a claim is not reduced for under-insurance across the whole building.
Declare how the building is used
Commercial units, short lets and empty flats can each change the terms.
Keep maintenance records
Roof, gutter, plumbing, fire safety and lift checks, with dates, support both claims and renewals.
Quote checklist
What You Will Be Asked for a Freeholder Quote
Six things shape the quote: the building, the flats, any commercial use, the rebuild figure, the lease, and the claims history.
The building
Construction, height, age and any cladding.
The flats
How many, and whether owner-occupied or let.
Any commercial use
Shops, offices or other businesses in the building.
A rebuild figure
For the whole building.
The lease
What it requires the insurance to cover.
Claims history
Recent claims, especially escape of water.
Comparing
Checking Freeholder Quotes Side by Side
Four areas decide whether a policy suits the building: the cover, the lease, the extras, and cost terms. The price is only one of them.
The cover
- Buildings and common parts
- Alternative accommodation for leaseholders
- Property owners’ liability
The lease
- Events the lease requires
- Interests noted
- Any commercial units
Extras
- Engineering and lift cover
- Directors’ liability
- Common parts contents
Cost terms
- The standard excess
- Escape of water excess
- Paying monthly or upfront
Check the escape of water excess. In a block it can be the excess that matters most. Unfamiliar terms are explained in our plain English jargon guide.
Cutting costs
How to Reduce the Cost of Freeholder Insurance
The levers are an accurate rebuild figure, good maintenance, leak prevention, and the excess. We publish no savings figures.
Get the rebuild figure right
Too high can waste premium; too low can lead to a reduced claim.
Prevent leaks
Plumbing checks and leak detection can help the terms.
Keep up maintenance
Roofs, gutters and common parts in good order.
Keep fire safety current
Alarms, fire doors and risk assessments.
Keep records together
Certificates and maintenance logs help at renewal.
Choose the excess deliberately
A higher excess is a lever, worth using only at a level you could absorb.
Glossary
Freeholder Insurance Terms Explained
The words that come up most on a freeholder insurance schedule.
- Freeholder
- The owner of the building and the land it stands on.
- Leaseholder
- The owner of a flat on a long lease.
- Common parts
- Shared areas such as hallways, stairs, the roof and grounds.
- Service charge
- What leaseholders pay towards running the building, often including insurance.
- Noted interest
- A leaseholder or lender named on the policy.
- Resident management company
- A company run by leaseholders to manage the building.
- Share of freehold
- Where leaseholders own the freehold together.
- Rebuild figure
- The cost of rebuilding the property, not its sale price.
- Alternative accommodation
- Cover for somewhere to live while a flat cannot be lived in.
- Excess
- The part of each claim you pay yourself.
Why MyMoneyComparison.com
Why Compare Freeholder Insurance with MyMoneyComparison.com?
MyMoneyComparison.com is an FCA-authorised UK comparison service that introduces property owners to specialist brokers. We do not sell insurance and we do not give advice: the broker you choose arranges the policy. Using us is free.
One form, one property
Describe the property once, instead of repeating yourself to each broker.
Advice given
We are an introducer, not a broker. We do not sell policies and we do not recommend one insurer or product over another. Read our editorial policy.
Authorised and regulated
MyMoneyComparison.com Ltd appears on the FCA register under FRN 916241.
Incorporated
A UK company since 2013. FCA authorisation is separate and later; the register carries its date.
FAQs
Freeholder Insurance FAQs
Answers on leases, service charges, rebuild figures and leaks.
What is freeholder insurance?
Buildings insurance arranged by the freeholder for a building held on long leases, such as a block of flats or a converted house. It covers the whole structure and the common parts, for the rebuild figure.
Who has to insure a block of flats?
The lease usually says. In many buildings the freeholder or a management company insures the whole building and recovers the cost through the service charge. Check the lease to be sure.
Can the premium be recharged to leaseholders?
Where the lease allows, the premium is usually recovered through the service charge. Leaseholders can ask for a summary of the cover and how the cost is made up, so keep the details to hand.
How should the rebuild figure be set?
For the whole building, as the cost of rebuilding it, not the combined value of the flats. A professional assessment helps, and reviewing it regularly keeps the building properly insured.
Does it cover leaseholders’ belongings?
No. The freeholder’s policy covers the building and common parts. Leaseholders need their own contents insurance, and those who let their flats may need landlord cover too.
What is a noted interest?
A leaseholder or lender named on the policy, so the insurer knows they have an interest in the building. Many leases and mortgage lenders ask for this.
Is property owners’ liability included?
Many freeholder policies include it, covering injury or damage caused by the building or common parts, such as a fall on the stairs. Check the limit on the schedule.
What if a leaseholder cannot live in their flat after a claim?
Many policies include alternative accommodation or loss of rent for leaseholders while the flat is repaired after an insured event. Check the limit and how long it lasts.
Why do escape of water claims matter so much?
Leaks can spread between flats, and repeated claims can push up the price and the excess for the whole building. Regular plumbing checks can help.
Does cladding affect cover?
It can. Insurers ask about wall construction and cladding, and some can decline, set conditions or charge more. Any fire safety assessment of the external walls helps.
Are shops in the building a problem?
Not necessarily, but they need to be declared. A commercial unit, such as a takeaway or bar, can change the fire risk and the terms for the whole building.
Do I need cover for the lift?
Lifts can need regular inspection by a competent person, and engineering cover can pay for sudden breakdown. Some insurers offer both together, which can make the checks easier to keep on track.
What is directors’ liability for a management company?
Cover for the directors of a resident management company against claims about decisions they make running the building. It is usually an optional extra, so ask for it if the building is run by leaseholders.
What if flats are let as short lets?
Tell the insurer. Short lets to paying guests can change the risk, and some policies restrict them. The lease may also limit short letting, so check it before flats are let this way.
Can a share-of-freehold building be insured?
Yes. Where leaseholders own the freehold together, often through a company, that company can arrange the buildings cover for the whole block, as the leases require.
How do I compare freeholder quotes?
Look beyond the price to the buildings and common parts cover, alternative accommodation, liability, noted interests, engineering cover and the excesses, especially for escape of water.
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About this page
This page explains UK freeholder insurance: what it covers, what it leaves out, and how matching the policy to the lease and the building decides a claim. It is general information rather than advice. Policies differ between insurers, so read your own documents and put the questions raised here to your insurer or broker.
How we approached this page
- Published UK freeholder and block of flats policy summaries
- Common parts, alternative accommodation and noted interest terms
- Financial Ombudsman material on property insurance complaints
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