Building insurance is included as part of the bi‑annual service charge at London City Island. It covers:
Structural damage, communal area repairs, and estate-wide rebuilding
Communal equipment and liability cover for shared areas
Administered by Realty Management and detailed via the tenant portal
Note: This insurance does not cover your personal belongings—leaseholders must arrange contents insurance separately, including protection for potential leak damage to neighbouring flats.
Nationwide, hidden commissions in building insurance have inflated service charges significantly—up to 60% of some premiums, according to independent reporting.
Recent reforms require full disclosure of commissions and aim to eliminate these practices.
The Leasehold and Freehold Reform Act 2024 protects buyers by requiring transparency, banning excessive insurance commissions, and imposing a fair "permitted insurance fee" for agents.
Additionally, leaseholders have the right to challenge unreasonable insurance costs through tribunals or via the Right to Manage, if necessary.
| Leaseholder Insight | Implication |
|---|---|
| Building insurance is included | Administered via service charge and not optional |
| Personal contents not covered | You must purchase separate contents insurance |
| Hidden commissions risk | Ask for transparent breakdowns when reviewing charges |
| Legal rights exist | You may challenge charges or take control via leaseholder rights |
Need specialist help navigating building insurance for your City Island home, or challenging costly charges? Fraser Bond offers leaseholder advocacy, cost transparency reviews, and long-term value protection. Visit FraserBond.com to secure expert support.
