Freeholder insurance is generally the correct option for a building that has been converted into flats or apartments. This is usually large houses, but sometimes office blocks, warehouses and barns. It is also a must for anyone responsible for the maintenance and upkeep of a leased building and the property surrounding it.
In some cases, the freehold of the property can be owned by one person who charges the owners of the flats ground rent or a service charge, or it can be distributed amongst the owners of each separate flat. Sometimes the owners hold equal shares of the freehold and other times they own different amounts, depending on various factors such as the size of each flat.
Freehold insurance can be tailored to your precise circumstances and requirements.
Main policy features *
- Cover for loss or damage including fire, accidental damage, storm, flood, escape of water, subsidence and theft
- Building sums insured index linked or day-one uplift of up to 50%
- Property owners liability of up to £5m
- Cover for malicious damage caused by tenants
- Loss of rent cover
- Alternative accommodation
- Communal areas such as hallways, private roads and car parks are protected, and you can also receive employer’s liability cover for anyone hired to provide cleaning or maintenance of these areas.
Additional coverage can be included, such as liability protection for a residents’ association, lift inspection and maintenance cover, directors and officers insurance or terrorism insurance.
Freeholder insurance exclusions include:
- Damage by wet or dry rot
- Restricted cover when your property is unoccupied
- Damage due to a fault or limit of design, manufacture or installation. In particular there is no cover for damage to underground services that do not work because they are worn out.
- The cost of replacing any undamaged items, which form part of a set, suite or item of a uniform nature
- Loss or damage to your buildings from any cause not listed in the policy booklet – but wider cover is available with the accidental damage option.
* This information is a general guide only. Adler Fairways will assess your requirements and recommend a bespoke range of insurance solutions to meet your needs. As part of the quotation process, we will provide full details of the specific coverage, benefits, limits, premiums, exclusions, excesses payable, and any other policy conditions that would apply to the insurance we recommend for you. We currently only offer cover to businesses registered in England, Scotland, Wales, Northern Ireland, the Channel Islands and the Isle of Man.