Contingent buildings insurance provides cover for a leaseholder when the freeholder of their building has either failed to take out buildings insurance, allowed the policy to lapse, or holds a policy that is insufficient to meet the lender’s requirements. It is arranged during conveyancing when a solicitor identifies that the standard freeholder insurance is absent or inadequate.
At Title Policies, we arrange contingent buildings insurance quickly for solicitors and licensed conveyancers across the UK, with most policies issued the same day.
Solicitors: get a contingent buildings insurance quote today
When Is Contingent Buildings Insurance Needed?
Solicitors and conveyancers encounter the need for contingent buildings insurance in several common scenarios:
- The freeholder cannot be traced. On older leasehold properties, the freeholder may be uncontactable, dissolved, or deceased with no successor. Without confirmation of buildings insurance from the freeholder, a mortgage lender will not complete.
- The freeholder has failed to insure. The freeholder has a legal obligation to insure the building under most standard leases, but this obligation is not always fulfilled. Where a solicitor cannot obtain evidence of a current buildings policy, contingent insurance bridges the gap.
- The freeholder’s policy is inadequate. The existing policy may have an insufficient sum insured, exclude certain perils, or contain conditions that a lender will not accept. Contingent buildings insurance can sit alongside the freeholder’s policy to make up the shortfall.
- A leasehold sale is time-sensitive. Where the transaction is under time pressure and the freeholder is unresponsive, contingent buildings insurance allows the sale to complete while the underlying issue is dealt with separately.
What Does Contingent Buildings Insurance Cover?
A contingent buildings insurance policy typically covers:
- The structure of the building, including walls, roof, floors, and ceilings.
- Permanent fixtures and fittings within the building.
- Outbuildings and communal areas forming part of the leasehold title.
- Loss or damage caused by fire, flood, subsidence, storm, and other standard perils.
- Property owners’ liability in connection with the building.
Cover is provided on a contingent basis, meaning it responds where the freeholder’s policy does not exist or does not respond to a claim. It does not replace or duplicate a valid freeholder policy.
What It Does Not Cover
Contingent buildings insurance covers the structure of the building only. It does not cover:
- Personal contents, furniture, or belongings within the property.
- Commercial stock or equipment.
- Liability arising from the leaseholder’s own activities (covered separately under contents or liability policies).
How Quickly Can a Policy Be Arranged?
For most straightforward leasehold cases, a contingent buildings insurance policy can be arranged the same day, often within the hour. We work directly with solicitors and conveyancers and do not require lengthy application forms for standard risks.
We do not deal directly with members of the public. Please ask your solicitor or licensed conveyancer to contact us on your behalf.
FAQs: Contingent Buildings Insurance
No. Standard buildings insurance is taken out by the property owner to cover the building they own outright. Contingent buildings insurance is specifically for leasehold situations where the freeholder’s insurance is absent or inadequate, and responds only where the freeholder’s policy fails to provide cover.
Most UK mortgage lenders will accept a contingent buildings insurance policy arranged by a solicitor as a condition of completion where evidence of freeholder insurance cannot be obtained. Your solicitor will confirm the lender’s specific requirements.
Yes. Like other title indemnity policies, contingent buildings insurance is a one-off premium that runs with the property and transfers to future owners at no additional cost.
Premiums depend on the reinstatement value of the building and the nature of the risk. For most standard residential leasehold properties, the premium is modest. Contact Title Policies for a fast, competitive quote.
Related Services
If you are dealing with a leasehold property with multiple title issues, the following products may also be relevant:
- Restrictive Covenants Insurance
- Search Indemnity Insurance
- Chancel Repair Insurance
- Title Indemnity Insurance Guide
- What Happens If a Property Has a Defective Title?
Title Policies works directly with solicitors and licensed conveyancers. Members of the public should ask their legal adviser to contact us on their behalf.
For guidance purposes – a checklist of the information required is available by clicking on the following link