Does flats have insurance?

Posted on: Feb 11, 2025 | 3 mins | Written by: HDFC ERGO Team

Does flats have insurance?

Whether it is a flat or a house, your home insurance should cover it all. The main purpose of it is to cover the repair in case any major damage happens to the property. Various components like fire, flood or storm can affect the property. Therefore, having insurance for a property or place you stay in becomes important.

When you're getting the insurance, you will have to check for the coverages and inclusions it offers. Some of them can cover water leaks, protect the contents of your home and so on and so forth. Furthermore, a lot of people also check if the coverage includes the rebuilding cost around the house. However, one of the most commonly asked questions is if the flat has insurance. Let's find out.

Can You Get Flat Insurance?

A home and flat insurance is necessarily the same thing, although sometimes the terms are used interchangeably. Although there's no legal requirement to have flat insurance, it is still a good idea. Several property sellers and mortgage owners will provide you with the option to get insurance to secure the belongings of the house at the very least.

In fact, in some cases, you will have to show your mortgage provider that you have insurance for your flat. When you're getting the property, it is your responsibility to apply for the insurance. On the other hand, if you are leasing or renting the property, you will still have to apply for insurance. For the freehold properties, the freeholder is responsible for getting the insurance. They usually take care of the entire building. It is advisable that you check the terms and conditions of the lease before finalizing the property.

Can Renters Apply for Flat Insurance?

Usually, for rented properties, the landlord is required to apply for insurance. However, if the property isn't insured yet and you want to secure your belongings then you must get the renters insurance. Some of the insurance policies have a tenure of up to 1 year, and if you have to stay in the property for a year, get it insurance.

Nonetheless, before applying for the renters insurance, you may discuss with your landlord if they have the property insured. If they have insured the property, it will cover all the rental properties. Moreover, in this case, you'll get several insurance options for the building and its contents to protect the rent.

As for renting, there may be some issues with the policies and guidelines regarding the inclusions and exclusions. Therefore, it is essential to go through the details to avoid the possible risk of disputes in the future. Moreover, seeking legal and professional advice can ensure that you're protected against any major problems.

What Will My Flat Insurance Cover?

Once you apply for the homeowners insurance for your flat, you will have to check for the type of things it will cover. Usually, these coverages and inclusions vary depending on the type of insurance you have applied for and the insurance providers.

Every insurance provider has its own terms and conditions, which is why you will have to go through the details thoroughly. The levels will however vary significantly. However, typically, the insurance of your flat will cover different aspects, such as the following:

1. Glass and Sanitary Fixtures:

Since glass and sanitary fixtures like glass doors, windows, sinks and more are a part of your house, they will be covered by the insurance. This is to protect the property against any type of accidental breakage.

2. Structural Damage:

If the building is old, structural damage to it becomes common. However, structural damage may also happen to the property in case of any natural calamity, like an earthquake. Irrespective of the reason, the insurance will cover structural damage to the property, like fixing the walls and floors.

3. Fixtures and fittings:

Any fixtures and fittings that you have in your house like those of wardrobes, kitchens and bathroom fixtures will be covered under the insurance.

4. Legal liability:

The property insurance provider you work with will also help you in case of legal liability. However, this liability will only be applicable to a specific limit in case of property damage.

5. Alternative accommodation:

When the flat becomes inhabitable due to the damages, you will have to move to another location. In such a case, you will have to apply for alternative accommodation. This is usually covered by flat insurance, offering you security and safety during the stay.

What Is Not Covered by Building Insurance?

The homeowners insurance, as mentioned above, will cover a lot of things. This is usually to ensure that the contents fall within the house. However, under some circumstances, specific things may not be covered by the insurance. This is usually in case of extensive damage. Poor workmanship, poor maintenance, and regular wear and tear on the property aren't covered by the insurance.

Factors Affecting the Flat Insurance Premium

When you move into a flat, you may want to apply for insurance just to keep everything safe and secure on your end. However, you will have to calculate the premium to ensure that everything is protected and affordability is maintained in the premium.

Some of the key factors affecting the flat insurance premium include the following:

1. Location:

The location of the property has a huge impact on how much premium you'll have to pay. For example, if your property is located in a theft-prone or flood-prone area, the premium will usually be higher.

2. Age:

How long has the building been around for? If the property is old, you will want to file for claims in case of damages. Therefore, the insurance providers usually charge a high premium for old buildings, whereas, for newer buildings, the premium is comparatively lower.

3. Type:

The type of property you're applying for will have an impact as well. For example, for smaller properties, the premium is going to be lower and for bigger and more expensive, premium properties, the premium will eventually be high.

4. Value:

The market value of the property affects the premium. The premium will be high for high-market-value properties because the sum insured will be high.

5. Security:

Is there security for the flat? Several homeowners usually prefer having some anti-theft devices around their property. This is to reduce the risk of theft. Therefore, if you have any such unique gadgets around the house, security will be high, and the insurance premium will be low.

6. Add-on Covers:

There are several optional covers available in the market for your property. These add-on covers are applied for extra or additional coverage. Your policy provider will provide you with the option for additional coverage. Therefore, you can go through the terms and conditions for each of these coverages to make the right choice. The more coverage you opt for, the higher the premium will be.

Conclusion

Purchasing flat insurance is an expensive affair. Therefore, you must do some research and make the right choice. Your flat is your home, whether rented or purchased. So, make sure to protect it against any unforeseen damage like earthquakes, cyclones, floods and more. The insurance will offer protection to the structure and contents. Therefore, as you receive financial protection, it will provide you peace of mind, and you'll be able to live stress-free.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

Housing Society Insurance: A Detailed Guide

Why is building insurance necessary?

Top reasons to get Home Insurance in 2025

Home Insurance vs Home Loan Insurance: What You Need to Know