Home Insurance for Flats | Saga Home Insurance

Saga’s home insurance for flats can cover up to £100,000 for contents.

More than 5 million people in the UK live in apartments, so if you’re looking for home insurance for a flat, you’re definitely not alone. But how does flat insurance work and what should your next steps be?

What is flat insurance?

Flat insurance is the same as home insurance and comes in two forms:

Buildings insurance – To cover structural repairs to your flat following events like storms, fires and floods.
Contents insurance – To cover the loss or damage to your possessions that aren’t usually part of your flat’s structure.

But while insurance for flats is similar to insuring a house, there are some key differences you’re likely to encounter as a flat owner.

Do I need buildings insurance for a flat?

If you’re buying a flat, it’s likely you will need to pay towards a buildings insurance policy. And as we’ll explain – you may not have a choice.

The difference between buildings insurance for flats and houses

On the face of it, buildings insurance for flats is the same as for a house. These policies are designed to protect the cost of rebuilding your home if it’s structurally damaged following events beyond your control – from subsidence to storms. While buildings insurance is not a legal requirement, many lenders will insist you have a policy before agreeing to a mortgage.

However, the details of your buildings insurance arrangement will depend on whether your flat is a leasehold, freehold or share of freehold property.

Saga does not offer Buildings cover for flats.

Leasehold flat insurance explained

If you’re buying a leasehold flat, you will own the apartment space itself, but the block and surrounding land will be owned outright by a freeholder. They – and not you – will be responsible for taking out buildings insurance to protect the structure of the property.

However, as a leasehold flat owner you would need to pay a contribution towards the buildings insurance policy, which usually forms part of an annual service charge you're expected to pay. Your lease agreement should have the details of this.

In contrast, if you own a share of freehold flat, you have a shared responsibility with the other freeholders to arrange buildings insurance.

You can read more about the differences between leasehold, freehold and share of freehold ownership in this HomeOwners Alliance guide.

Do I need contents insurance for a flat?

Unlike with buildings insurance, as a flat owner (or renter) you’re responsible for arranging your own contents insurance. It’s not a legal obligation, but it may be a smart move to protect the value of your possessions if they’re damaged or stolen.

If you’re deciding whether to get contents insurance for your flat, here are some questions to ask yourself:

How much would your possessions cost to replace?
Do any items have sentimental value that you would rather put in storage or elsewhere?
Do you live in a neighbourhood that would be considered a high crime risk?
Do you wish to cover the whole flat? If you live in a house-share, you could get contents insurance for one room only.
Do you intend to rent out the property? If so, your tenants may decide to arrange their own contents insurance, for their furniture or personal possessions.