I have been living in a new build apartments complex for the last 12 months, but have just been told by one of my neighbours that I don’t need Buildings Insurance as that is covered by the Management Fee. Is that right?
It probably is. In a leasehold complex of multiple units, whether it be apartments or flats, the obligation to insure will remain with the Freeholder who also has the responsibility of maintaining the building.
The cost of this is distributed proportionately among the tenants via the service charge. The service charge will include those contributions towards maintenance, repair and shared utilities as well as a proportionate contribution towards the overall insurance premium for insuring the building. Each individual apartment owner need only insure their own contents, fixtures and fittings.
You should also ensure that your mortgage repayment does not include any building insurance premium as this is already covered by the landlord and payable by you in the service charge.