Flat owners have been overcharged billions of pounds for buildings insurance in an “endemic” problem that takes advantage of the leasehold system.
It is usually the responsibility of the freeholder to arrange buildings insurance, but under the terms of the lease the cost is passed on to the leaseholders as part of their ground rent or service charge.
The freeholder, om their managing agent, usually arranges this cover through the broker, which takes a commission from the insurer.