Insurance rent

Leases are worded in different ways. Some recover insurance as part of the service charge; others call it "insurance rent" and set out its own share and payment date.

Why the label matters less than you might think

The Landlord and Tenant Act 1985 counts an amount payable "as part of or in addition to the rent" for insurance, which varies with the cost, as a service charge (s.18). So the usual protections, such as reasonableness and the summary of rights on demands, still apply.

In practice

• Use the lease's own wording, share and dates when you demand it.
• If your company has taken over insuring the building, check who the lease says should insure. In an RTM building, the landlord may still insure at its own expense, but leaseholders pay only for the company's policy.
• Leaseholders can ask for a summary of the insurance cover, which must be supplied within 21 days (Schedule, para 2).