Many leaseholders assume that, because their block of flats has a buildings insurance policy covering fire, they are fully protected. In reality, that master policy usually covers the structure of the building, not your possessions, and sometimes not your internal improvements. So while you may not be legally required to insure separately, relying on the building's policy alone leaves real gaps. Here is the position in England and Wales.
Who insures the building?
In most blocks of flats, the lease requires the freeholder (or a management company) to take out buildings insurance for the whole structure, and to recover the cost from leaseholders through the service charge. So you are usually paying for the buildings policy indirectly, even though you do not arrange it.
This buildings cover typically protects the fabric of the building (walls, roof, structure and often common parts) against risks including fire.
What the building's policy usually does not cover
The master buildings policy generally does not cover:
- your contents and personal belongings (furniture, electronics, clothes, valuables);
- internal decorations and improvements you have made (depending on the policy and lease); and
- alternative accommodation for you specifically, beyond what the policy provides.
So if a fire damages your possessions, the buildings policy will usually not pay for them, that is what contents insurance is for, and it is your responsibility to arrange.
Why relying on the buildings policy is risky
- Contents gap. Without contents insurance, you bear the full cost of replacing your belongings.
- Improvements gap. Expensive fitted kitchens, bathrooms or flooring you installed may not be covered by the buildings policy, check whether you need to insure improvements.
- Excess and disputes. You may be exposed to policy excesses or to delays and disputes over what the master policy covers.
Check the lease and the policy
Your lease sets out who must insure what, and the master policy's summary shows exactly what is covered. It is worth:
- asking the freeholder/managing agent for a copy of the buildings insurance certificate and summary;
- checking whether improvements are included or need separate cover; and
- taking out contents insurance sized to your possessions.
A note on building safety
Following high-profile fires, building safety has been reformed (including by the Building Safety Act 2022), which affects how higher-risk buildings are managed and how some costs are allocated, but it does not remove the basic point that the buildings policy is not a substitute for your own contents cover.
Key takeaways
- The block's buildings insurance (usually arranged by the freeholder and paid via service charge) covers the structure, including fire.
- It generally does not cover your contents, belongings, or some internal improvements.
- You are usually not legally required to insure separately, but contents insurance is strongly advisable, and consider cover for improvements.
- Check your lease and the master policy to find the gaps.
Sources
- Typical lease provisions requiring the landlord to insure the building and recover the cost via service charge
- The distinction between buildings and contents insurance
- Building Safety Act 2022 (building safety reforms affecting higher-risk buildings)
--- This article is general information about the law of England & Wales as at 2026, not legal advice. For advice on your circumstances, consult a qualified solicitor or insurance professional.