Your lease and insurance
PrintYour lease is the legally binding document which sets out the relationship we have with each other. Each lease is different so you must always refer to your own lease for details specific to your home.
Your solicitor will have provided you with a copy of your lease when you bought your home, and you should always keep it in a safe place.
You can order a copy of your lease online from Land Registry if you don’t have yours to hand.
If you ask us for a copy, an additional administration fee will be payable.
Generally speaking, under the lease Riverside:
- provides building insurance for schemes through our block policy
- arranges and manages communal services you may receive, such as window cleaning or gardening
- is responsible for arranging repairs in communal areas and carrying out scheduled ‘cyclical’ repairs and renewals
- manages the service charge funds we collect from customers to pay for the services provided
- collects a management fee as part of the service charge, to cover our costs of managing any services
Lease Extensions & Enfranchisement
For details about extending the term of your property’s lease (to add more years), or enfranchisement if you live in a house, read our Lease Extension & Enfranchisement Information for Leaseholders.
Buildings insurance
Buildings insurance is a requirement under the terms of your lease, ensuring that your home is fully covered in the event of an insured loss, such as escape of water, fire or subsidence. Riverside is responsible for arranging this insurance where the lease terms require it, providing comprehensive coverage for your property and any shared areas.
For leaseholders in multi-occupancy buildings, reinstatement costs must cover the full structure, including communal areas, external walls, and shared facilities. Insurance must be arranged centrally to ensure continuous protection, as individual policies could lead to gaps in coverage, delaying repairs or causing disputes in the event of a claim.
Similarly, for shared ownership properties, Riverside arranges insurance because it retains an ownership interest in the portion of the property that has not yet been purchased by the leaseholder. This protects both the leaseholder’s investment and Riverside’s stake in the home.
Many leaseholders compare their premium to personal home insurance policies, but these only cover contents or certain aspects of the property. Buildings insurance covers full reinstatement, including damage to structure, shared spaces, alternative accommodation and liability risks.
Q1: Why has my insurance premium increased? Insurance premiums have risen due to market-wide factors, including higher claims costs, increased repair expenses, and insurer financial stability requirements. These increases are affecting insurers across the sector, not just this policy.
Q2: Can I opt out of the insurance policy? No – insurance is a requirement under the lease, meaning leaseholders must remain covered. We have teamed up with insurer RSA to offer a low-cost insurance policy for you, find out more here.
Q3: Can Riverside negotiate a lower premium? While Riverside do not control pricing, we endeavour to negotiate premiums each year with insurer RSA by providing improved risks and mitigation methods.
Q4: What happens if I can’t afford the increased premium? If you’re struggling with affordability, we encourage you to reach out to our money advice services, who may be able to provide financial guidance.
Q5: Have insurance premiums increased for all customers or just this development? Premiums are increasing for all customers, due to inflation so it’s likely that there will be increases in insurance premiums due to increased costs to repair properties as building materials become more expensive. We need to ensure all properties are adequately insured to cover these higher costs, resulting in higher premiums.
Q6: How are insurance premiums calculated for leaseholders? Insurance premiums that are calculated as part of your service charge are based on factors such as property type, number of bedrooms and the location of the property.
Q7: Do I have to pay my insurance premium all at once? No – Riverside arranges and pays the insurance premium upfront, and leaseholders then repay the cost in instalments through their service charge payments, rather than as a lump sum. This approach helps to ease financial planning and aligns with lease terms.
Q8: What other housing costs might be affected by rising prices? Beyond insurance, utilities, service charges, and maintenance fees are all seeing increases due to inflation and higher costs in the sector. Seeking financial advice early may help manage expenses effectively.
For shared ownership homes, Riverside retains a financial interest in the unpurchased equity and must ensure the entire property – not just the leaseholder’s percentage, is covered.
Why can’t shared owners insure their portion separately? Buildings insurance must cover the full structure. A split approach where the leaseholder insures their share and the landlord insures the remainder, would create gaps in coverage, making reinstatement difficult in the event of major damage. Insurers require a single, comprehensive policy to guarantee full protection.
What does the insurance cover?
- The structure of the property, ensuring full reinstatement if damaged.
- Communal areas or shared facilities, where applicable.
- Liability risks associated with multi-occupancy buildings in cases where multiple residents are affected.
How are costs apportioned? Leaseholders contribute to the cost of insurance through service charges, as outlined in their lease agreement.
- Buildings insurance is a requirement under your lease, ensuring your home is fully protected.
- Premium increases are market-driven and impact the entire sector.
- Riverside arranges insurance centrally to protect leaseholders and ensure full reinstatement.
- Customers cannot opt out, but additional contents insurance can be arranged separately.
Contents insurance
While we are responsible for insuring the structure of the building you live in, we don’t insure leaseholders’ or customers’ furniture or personal belongings – that’s your responsibility.
It’s important that you think about home contents insurance via an independent insurer.
Read more about insurance here.
Subletting
Shared ownership homes cannot be sub-let.
Other homes cannot be sub-let unless the lease states that it is allowed, and often you will also need permission from us to sub-let a property.
Always refer to your lease to check the terms and conditions, your obligations and our responsibilities.
Our website should also answer many general questions you may have but if you need more help, please contact us.