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Leaseholders insurance FAQs

What do you mean by 'Building sum insured'?

The building sum insured value used for insurance purposes is based upon the rebuilding cost of your property, and has no link with the market value. This value increases each year and is the total amount your property has been valued for i.e. in terms of if it was to be rebuilt again.

Your lender bank or building society will sometimes request for this value to be increased to a specified minimum amount.

Please note that your premium will increase with a higher sum insured value.

Why is the sum insured for my building different to the current market value of my property?

The building sum insured used for insurance purposes is based upon the rebuilding cost of your property, and has no link to the market value i.e. the price a buyer is willing to pay for a property.  

Why is my building sum insured, different to that of my neighbours?

There can be a number of reasons why the building sum insured may differ. This may be because there is a slight difference in the size of the property (square footage), or because the lenders bank or building society have requested that the property be insured for a specified minimum amount.

How can I be sure that the building sum insured is correct?

A revaluation exercise is carried out every few years to ensure that the building sum insured remains accurate. The building sum insured is also index linked, meaning that it is increased each year to reflect changes in building costs. In addition some mortgagees may request a minimum building sum insured if you have a mortgage with them.

Can I change my building sum insured?

You can request your building sum insured to be changed providing that it is no less than the current valuation, as advised by the council’s valuers.

There is no benefit to over insuring your building. Any requests to increase your building sum insured must be made in writing.

Some banks and building societies may request a minimum building sum insured if you have a mortgage with them. They will usually advise if that is the case. Please note that your premium will increase with a higher sum insured.

My mortgage lender has advised that I should insure the buildings through them, is this possible?

The council (as freeholder and landlord) insures the building against loss or damage caused by a range of perils detailed in your buildings insurance.

You cannot have more than one building insurance policy on your property.

What is my cover for temporary accommodation?

The policy limit for “additional costs of alternative accommodation” and “loss of rent” is 20% of the total sum insured for the building damaged or destroyed.

What excess do I have when I sublet my property?

Accidental damage cover is excluded whilst the property is sublet.