Buildings insurance for flats: responsibilities and rebuild costs
Building insurance for flats can involve several owners, one shared building and questions about who arranges the cover. If you own a flat, share the freehold or manage the building, check the lease and management arrangements first. These can also help confirm which building the rebuild cost assessment needs to cover.
This guide explains who may arrange cover in England and Wales, what a rebuild cost assessment for flats should consider and when the figure may need a review. It also outlines when a desktop or site assessment may be suitable.
Who arranges buildings insurance for flats?
For a leasehold flat, the lease usually sets out who arranges cover for the block and how the cost is shared. The freeholder or managing agent usually arranges buildings insurance, while leaseholders contribute through the service charge. Any insurance cost passed on this way must be allowed by the lease and reasonable. If you own a leasehold flat, check the lease to understand whether you need to arrange separate buildings cover. If you’re unsure, ask the freeholder or managing agent for a copy of the policy and how your share is worked out.
For flats, start with the arrangement that applies to you:
Your position | What to check |
You own the building’s freehold | Check your duties under the leases and who handles the building’s policy. |
You share the freehold | Confirm who arranges and reviews cover on behalf of the freeholders. |
You own a leasehold flat and let it to tenants | Ask the freeholder or managing agent for the building’s insurance details and check your own duties under the lease. |
Share of freehold buildings insurance
If you share the freehold, agree who will handle renewals, keep the building details up to date and arrange any rebuild cost assessment. Before dividing the tasks, check the leases, company or management arrangements and any lender’s insurance requirements.
What does buildings insurance cover in flats?
Buildings insurance can pay to repair or rebuild the structure after damage from an event covered by the policy, such as a fire. For flats, check which parts of the building are covered, including shared spaces.
Ask your insurer or broker:
Does the policy cover the roof, outside walls, shared stairs and halls?
Does it cover fitted kitchens and bathrooms inside each flat, including changes made by leaseholders?
If insured damage means tenants have to move out, is there cover for lost rent or somewhere else for them to stay? What limits apply?
Check cover for contents separately, including furniture you provide for tenants. The policy’s terms, limits and exclusions determine what is covered.
What should a rebuild cost assessment for flats consider?
A rebuild cost assessment estimates the cost to rebuild a property if it were destroyed. This differs from market value, which reflects what someone might pay to buy it.
For residential buildings in England and Wales, RebuildCostASSESSMENT.com (RCA) normally assesses the whole building, rather than a single flat. This reflects how buildings insurance for flats is often arranged. The assessment scope should match the building being insured, including relevant shared areas. If you need a figure for one flat, contact us first to check whether your particular arrangement can be assessed that way.
To understand what goes into the figure, check:
The building’s size, layout, age and construction, including extensions or conversions.
Shared areas and services, such as stairs, corridors and lifts.
Other permanent structures, such as walls or outbuildings, where these are included.
Features that may affect the cost, such as listed status, specialist materials and access.
RCA Desktop Assessment reports show floor areas and rebuild rates, other permanent structures, and separate allowances for demolition and professional fees. They show totals before and after VAT, with a VAT breakdown.
The breakdown helps show how the assessment is calculated. It does not decide which VAT figure belongs in your buildings sum insured. This depends on your circumstances. Ask an accountant about VAT, and check the policy requirements with your broker or insurer.
Why the rebuild figure can be too low or too high
An old estimate, a figure based on the purchase price or changes to the building can leave the insured amount out of step with its rebuild cost. The figure may be too low or too high.
Our 2026 property insurance infographic is based on 46,917 rebuild cost assessments carried out across the UK. In that data, 67% of properties assessed were underinsured and 25% overinsured; 8% were accurately insured. Among flats and apartments, 52% were underinsured, 37% overinsured and 11% accurately insured.
If the building is underinsured, a claim may not cover the full cost of repairs. If an average clause applies, the insurer may reduce the payout to reflect the extent of underinsurance. The outcome depends on the policy and the circumstances of the claim.
An insured amount above the rebuild cost is also worth reviewing. Ask your broker or insurer how a revised assessment could affect the policy, including the premium. A current rebuild cost assessment can help you check that the buildings sum insured is closer to the cost of rebuilding, reducing the risk of both underinsurance and overinsurance.
How often should a rebuild cost assessment be reviewed?
Building costs can change even if a block stays the same. RICS guidance recommends regular reviews of the sum insured, an annual inflation update and a full review every three years. Review sooner if the building changes significantly, such as after an extension or major refurbishment.
The three-year cycle is good practice, not a legal rule or a term that applies to every policy. Some policies link the sum insured to an index. At renewal, check with the broker or insurer how this affects the figure.
Choosing an assessment type for a block of flats
RCA offers two assessment types. A Desktop Assessment is completed remotely, while a Site Assessment includes a visit. A Desktop Assessment may suit a standard block with clear property information. A site visit may be useful for buildings with unusual features or a large or complex layout.
Many insurers accept our Desktop Assessments. Policy terms differ, so check for any specific conditions before arranging a report.
Before arranging a rebuild cost assessment
Use these checks to confirm the assessment covers the right building:
Check the lease and management arrangements to see who arranges the building’s insurance.
Gather the policy schedule, previous assessment, plans and details of major changes.
Confirm the assessment covers the insured building and any shared areas.
Check the report details, assumptions and exclusions. Raise any errors or questions with the assessor.
Ask the broker or insurer whether the report meets the policy’s requirements and how to use its figure.
We can confirm which assessment options are available for a particular block. The broker or insurer can confirm whether the report meets the policy’s requirements.
