Table of Contents
Introduction to Freehold Property
Freehold property owners require comprehensive insurance cover, including buildings insurance and contents insurance. Often this is not available on comparison websites, which prefer to deal with simpler policies.
Freeholder buildings insurance is essential for those responsible for maintenance and upkeep of leased buildings and surrounding property.
It is crucial for owners of converted houses, purpose-built blocks (or any block of flats), and multiple flats to have the right insurance policy.
Understanding the differences between freehold and leasehold property is vital for choosing the right buildings insurance.
How Emerald Can Help
Emerald has been dealing with the issues surrounding freeholder building insurance for well over a decade now, whether you are a joint freeholder, management company or anyone who needs cover over a whole building, from small semi detached conversions with two flats to a block of flats with individual units.
If you want to understand more you can see our web page on freeholder building insurance HERE, or call us on 0330 113 7109, or email on customerservice@emeraldlife.co.uk. We are always happy to walk you step by step through the process, discuss policy documentation etc.
Understanding Buildings Insurance
Buildings insurance, also known as building insurance, covers the structure of the building, including permanent fixtures.
It is usually a requirement for mortgage holders, as the lenders will require it, but it is not a legal requirement for your block of flats or leasehold property. Not all freehold property owners have it in that case, but there are clearly reasons why for flats building cover is a sensible idea.
Freeholder buildings insurance can be customized to fit specific property and maintenance needs and can be recouped through your service charge as a leaseholder/joint freeholder.
Buildings insurance covers damage caused by fire, theft, and other risks, providing peace of mind for property owners.
Types of Freehold Properties
Freehold properties include converted houses, purpose-built blocks, and multiple flats.
Each type of property requires specific insurance cover, taking into account factors like ground rent and service charges.
Joint freeholders, any managing agent, and shared freehold owners must also consider their insurance options.
Understanding the different types of freehold properties is essential for choosing the right insurance policy.
Buildings Insurance Cover
Buildings insurance cover includes protection against damage to the building’s structure and permanent fixtures.
It also covers communal areas, such as communal gardens and entrances.
Freeholder building insurance can include additional cover options, like liability protection and home emergency cover.
Policy limits and exclusions apply, so it’s essential to review the policy wording carefully.
Buildings Insurance
Buildings insurance covers the cost of repairing or rebuilding the property in the event of damage.
It also covers the cost of alternative accommodation if the property is uninhabitable.
Freeholder insurance can include cover for accidental damage, malicious damage, and other risks, although for accidental damage and other expansions there will be a change to the cost.
Understanding what is covered and what is not is crucial for making an informed decision. That is where an informed, highly rated insurer such as Emerald can help.
Building Insurance and Contents Insurance
Building insurance and contents insurance are two separate types of insurance.
Contents insurance covers personal belongings, while building insurance covers the structure of the building.
Many freeholders choose to combine both types of insurance for comprehensive cover. BUT – bear in mind that this is not home insurance. Freeholders can only cover contents that are communal, so for example if there was furniture in the communal areas or communal entrances. For property or belongings owned only by one freeholder/leaseholder, they that would need to be insured under their own home insurance.
Understanding the differences between building insurance and contents insurance is essential for choosing the right policy.
Freehold Insurance Benefits
Freehold insurance provides numerous benefits, including peace of mind and financial protection for the freeholder responsible.
It can also include additional cover options, like liability protection and home emergency cover.
Freeholder insurance can be customised to fit specific property and maintenance needs but make sure that the policy limits are still suitable, and remember to read the full details if you are unsure.
Understanding the benefits of freehold insurance is crucial for making an informed decision.
Alternative Accommodation
Alternative accommodation is often included in freeholder building insurance policies.
It covers the cost of temporary accommodation if the property is uninhabitable due to damage.
Understanding the terms and conditions of alternative accommodation cover is essential.
It’s also important to review the policy wording carefully to ensure you understand what is covered.
Working out How Much to Insure Your Building For
Working out how much to insure your building for can be complex. For freeholder building insurance there are many different property types and rebuild will be different in a purpose built block to, say a Victorian conversion.
It’s essential to consider factors like rebuild cost, permanent fixtures, and communal areas.
Recognised independent price indices can help determine the correct sum insured. :Local estate agents can also help.
Understanding how to calculate the correct sum insured is crucial for avoiding underinsurance.
Making a Claim
Making a claim can throw you into a complex claims process, but understanding the steps involved can help.
It’s essential to review the policy wording carefully and understand what is covered.
Keeping records of damage and correspondence with the insurance provider is also crucial.
Understanding the claims process can help you navigate it more easily and ensure a smooth resolution.
Conclusion
Freehold insurance is a complex and often misunderstood topic, but understanding the basics can help.
Reviewing the policy wording carefully and understanding what is covered is essential. Working with an experienced insurance broker can provide guidance and help you choose the right policy. Understanding the benefits and importance of freehold insurance can provide peace of mind and financial protection for property owners.
How Emerald can help!
We mentioned above that an experience insurance broker can help. Emerald is just that broker for your needs. You can call us on 0330 113 7109, or email on customerservice@emeraldlife.co.uk. We are a non-advised service, so cannot give advice, but we can explain the cover to you in a way that we hope will clarify this area.
