Buildings Insurance for Council Leasehold Properties

Reading Borough Council is seeking a third-party property insurance policy to cover 229 Right to Buy leasehold properties, 13 shared ownership houses, 1 mortgaged property, and 16 detached garages where the Council retains freehold ownership. This new standalone contract will establish a long-term insurance arrangement ensuring leaseholders have appropriate buildings insurance cover in compliance with the Council's obligations as freeholder and landlord. The property portfolio consists mainly of flats within blocks and maisonettes. Under the lease terms, the Council must arrange buildings insurance on behalf of leaseholders and recover premiums through service charges. Properties in the Council's own housing stock are excluded. A detailed property schedule is available containing construction type, age, storeys, and tenancy details. The contract must provide appropriate third-party property insurance protection, mitigate financial exposure from claims, ensure compliance with lease obligations, offer transparent and consistent coverage for leaseholders, and support effective risk management. As a Qualifying Long-Term Agreement under Section 20 of the Landlord and Tenant Act 1985, the Council must consult affected leaseholders before proceeding.