Freeholder Insurance for blocks and their managers
Buildings and liability cover for freeholders of blocks of flats and mixed use buildings let on long leases, including residents' and right to manage companies. Compare policies through brokers who insure whole blocks.
- The whole block insured under one buildings policy
- Common parts, lifts and liability for shared areas
- Directors' cover for residents' management companies
Reviewed October 2026 by the MyBusinessComparison.com editorial team
What is freeholder insurance?
Freeholder insurance is buildings and liability cover arranged by the owner or manager of a block let on long leases. It insures the structure, common parts and shared services of the whole building, as the leases usually require, and protects the freeholder against claims arising from areas it controls, such as stairs, car parks and grounds.
It differs from commercial landlord insurance because the leaseholders own their flats or units on long leases and pay towards the premium through the service charge. Most leases put the duty to insure on the freeholder, so the policy has to match the lease terms and stand up to questions from the leaseholders who fund it.
Freeholders include investment companies holding ground rents, residents' management companies and right to manage companies, often working through a managing agent.
Freeholder insurance at a glance
- Suits
- Freehold owners, residents' management and right to manage companies
- Building types
- Purpose built blocks, converted houses and mixed use buildings
- Paid for by
- Leaseholders, through the service charge, as the leases allow
- Core sections
- Buildings, common parts and property owners' liability
- Often added
- Directors' and officers', engineering inspection and terrorism
- Not included
- Leaseholders' own contents and belongings
What does freeholder insurance cover?
A block policy covers what the freeholder is responsible for under the leases. These are the usual sections.
The whole structure
Walls, roofs, foundations, balconies, windows and the fabric of every flat, insured as one building for the full cost of rebuilding.
Common parts
Entrance halls, stairs, corridors, bin stores, car parks, gates and grounds, including carpets, lighting and door entry systems.
Escape of water
Leaks between flats are among the most frequent block claims. Check the excess, the cost of tracing leaks, and how repeat leaks from one flat are handled.
Alternative accommodation and lost rent
Costs of rehousing residents, or rent lost by leaseholders who let their flats, while the block is repaired after insured damage.
Property owners' liability
Claims from residents, visitors and contractors hurt in the common parts or by falling masonry, trees or defects in shared areas.
Read more about public liability insurance
Lifts, boilers and plant
Breakdown of passenger lifts, communal boilers, pumps and door systems, plus the regular inspections they need.
Read more about engineering inspection and breakdown cover
Directors' and officers' cover
Claims against the volunteer directors of residents' and right to manage companies over decisions they take for the block.
Read more about directors' and officers' insurance
Employers' liability
Needed if the company employs a caretaker, cleaner or porter directly, rather than through a contractor or managing agent.
Read more about employers' liability insurance
Other sections freeholders consider
- Terrorism cover: often asked for by lenders to the freeholder or the leaseholders in towns and cities
- Legal expenses insurance: service charge, lease and contractor disputes, depending on the policy
- Crime and fidelity cover: theft of service charge or reserve funds by someone trusted to handle them
- Unoccupied cover: if the block is emptied for major works or after a serious loss
Who needs freeholder insurance?
Any company that holds or manages the freehold of a building with long leaseholders and must insure it.
Letting commercial units instead? See commercial landlord insurance, or start at the commercial property and landlord insurance hub.
- Residents' management companies: leaseholders who own the freehold or manage the block through a company
- Right to manage companies: leaseholder companies that have taken over management, including the insurance
- Ground rent and freehold investors: companies holding freeholds of blocks as investments, with insuring duties under the leases
- Freeholders of mixed use buildings: commercial units below long leasehold flats, with the commercial trade rated carefully
- Owners of converted houses: period houses split into flats, often with the freehold held through a company
- Developers retaining the freehold: new build blocks where the flats have been sold and the developer keeps the freehold
- Managing agents acting for freeholders: arranging and administering block policies on behalf of their clients
- Property companies with freehold portfolios: several blocks insured on one schedule
- Freeholders of listed blocks: historic buildings converted to flats, with heritage rebuild costs
How much does freeholder insurance cost?
Block premiums are shared between leaseholders, so they are watched closely. These factors set them.
Rebuild cost of the block
The single largest factor. A professional reinstatement valuation keeps it accurate and defensible to leaseholders.
External walls and fire safety
Cladding, balconies, insulation and fire stopping are examined closely on taller blocks, and some insurers ask for a fire safety assessment of the external walls.
Escape of water history
Repeated leaks push block premiums up more than almost anything else. Leak detection and prompt repairs help.
Commercial units in the building
Shops, restaurants or bars on the ground floor are rated on their trade and can change the premium for the whole block.
Occupancy and letting
Insurers ask how many flats are owner occupied, sublet, used for short term lets or empty.
Excess and claims handling
A higher escape of water excess can steady the premium, and some leases allow it to be recovered from the leaseholder responsible.
What freeholder insurance does not cover
Leaseholders often assume the block policy covers more than it does. These are the usual gaps.
- Leaseholders' own contents, furniture and belongings, which they insure themselves
- Improvements added by leaseholders, unless the leases or the policy include them
- Gradual leaks, damp, and wear and tear from poorly maintained pipes, roofs or gutters
- The cost of putting right defective cladding or other fire safety defects, which is not insured damage
- Damage while the block is emptied for major works, unless unoccupied terms are agreed
- Mistakes in advice or management by managing agents, who need their own professional indemnity insurance
- Losses from short term letting the insurer was not told about
What the freeholder insures and what leaseholders insure
Many block disputes come from confusion over who insures what. This is the usual split, though the leases always decide.
| Feature | Freeholder's block policy | Leaseholder's own policy |
|---|---|---|
| Structure and fabric | Yes, for the whole building | No, unless the lease says so |
| Common parts | Yes | No |
| Contents and belongings | No | Yes, under contents insurance |
| Kitchens, bathrooms and fixtures | Often the original fittings, depending on the leases | Improvements, depending on the leases |
| Liability | Shared areas, under property owners' liability | Within their own flat |
How to compare freeholder insurance
Block quotes depend on detail and have to be explained to leaseholders afterwards. Gather these first.
Read the insuring clauses in the leases
What must be insured, against which risks, in whose name, and how the premium is recovered.
Commission an up to date valuation
A reinstatement cost assessment for the whole block, reviewed every few years.
Collect building and fire safety information
Construction, external walls, height, the fire risk assessment for the common parts and any remediation work.
Summarise claims and occupancy
Past claims, especially leaks, and the mix of owner occupiers, sublets and commercial tenants.
Explain the cover to leaseholders
Share a clear summary of the policy, the premium and any broker fees or commission.
Talk to a block insurance broker
Tell us about the block and its leases and a broker will compare block policies for you.
Get a quoteFreeholder insurance FAQs
How much does freeholder insurance cost?
It depends on the rebuild cost of the block, its construction and external walls, the claims history, any commercial units, how the flats are occupied and the excess. Escape of water claims are the biggest driver for many blocks. A broker can show which factors are moving your premium.
Who pays for the freeholder's buildings insurance?
Usually the leaseholders, through the service charge or an insurance rent, as the leases set out. The freeholder arranges and administers the policy, and leaseholders can generally ask for a summary of the cover and how their share has been worked out.
Do residents' management company directors need their own cover?
It is worth considering. Volunteer directors make decisions about repairs, spending and disputes, and claims can be brought against them personally. Directors' and officers' insurance can be added to many block policies to cover defence costs and awards.
Does a block policy cover leaks from one flat into another?
Usually, yes, as escape of water, including damage to the flat below. Many policies carry a higher excess for this, and repeated leaks can affect renewal terms. Cover for the cost of finding the source of a leak is worth checking too.
How does cladding affect freeholder insurance?
Insurers look closely at the external walls of taller blocks, including cladding, insulation and balconies. Some ask for a fire safety assessment of the walls and may restrict cover or raise premiums where combustible materials remain. Share details of any remediation, planned or completed, with your broker.
Can the block policy include the leaseholders' contents?
Not normally. Block policies cover the building and common parts. Leaseholders insure their own belongings and, depending on the leases, any improvements such as new kitchens. Reminding leaseholders of this each year helps avoid uninsured losses after a leak or fire.
Do short term lets in the block affect the insurance?
They can. Many insurers ask whether any flats are used for short term or holiday letting, because frequent changes of occupant raise the risk of damage and fire. Tell your broker about any you know of, since it can affect the terms.
Does the freeholder need employers' liability insurance?
Only if it employs staff directly, such as a caretaker, cleaner or porter. Where those people are employed by a contractor or managing agent, that employer holds the cover, though it is worth checking their certificates each year.
How do I get a freeholder insurance quote?
Send the block details from this page and a broker who arranges block policies will call to discuss them. Have the insuring clauses from the leases, a recent reinstatement valuation, building and external wall details, the fire risk assessment, occupancy details and claims history ready.
Compare freeholder insurance
Block cover that matches your leases and stands up to leaseholder questions, arranged by brokers who insure whole buildings.