Landlord insurance - the rights of leaseholders

Landlord insurance has critical importance to both, the tenant and the landlord. In the case of a leaseholder this is particularly important.


If you live in a leasehold property, the insurance is usually dealt with in 2 ways. Generally, flats leases require that the landlord insures the property. Later, the landlord is free to either recover the cost from leaseholders as a separate payment, called “insurance rent” or include it in the service charges. Leases of houses are quite different and require that the leaseholder insures the property in accordance with the instructions, provided by the landlord, who usually picks the insurance company.

If your case falls under the category, where property insurance is obligation of the landlord, the Schedule to the Landlord and Tenant Act of 1987 gives you, as a tenant, a right to require basic information associated with the insurance policy, which has to be provided by the landlord within 21 days. If the landlord fails to submit the required documents, he can be accused of criminal offence and fined up to £2,500.
If your case falls under the second category, the rights are even more extensive. The leaseholder is obliged to look for the most appropriate insurance policy. Should any misunderstanding occur between the landlord and the leaseholder, the latter has a right to apply to the court or to the Leasehold Valuation Tribunal.

For more FREE advice relating to insuring leasehold properties landlord can use the Leasehold Advisory Service.