Buying a share transfer property is a popular choice in Jersey, particularly for apartment living. Alongside reviewing company documents, service charges, and occupancy rights, one essential consideration is sometimes overlooked: insurance. Understanding who insures what can help you avoid unexpected costs and ensure you are fully protected from completion onwards.
Who Insures the Building?
In a share transfer structure, you are purchasing shares in a company that owns the building, rather than the apartment itself. The company, not individual owners, arranges the main buildings insurance. This covers the structure and communal parts of the property, funded through your service charges. It protects the roof, exterior walls, stairwells, and shared areas for the benefit of all shareholders.
What the Company’s Buildings Insurance Covers
The company’s buildings insurance typically includes structural damage, common areas, fixtures forming part of the building, and liability relating to communal spaces. This provides a coordinated protection framework and helps maintain financial stability for all shareholders.
What You Must Insure Yourself
Whilst the company covers the building structure, each shareholder is responsible for insuring their own contents and internal finishes. This includes flooring, wall finishes, ceilings, kitchen units, bathroom fittings, electronics, appliances, furniture, internal doors, décor, and personal items.
Contents insurance should be in place from completion. I would suggest that third party liability insurance is included within your contents policy. This covers your legal and financial responsibility for injuries or damages caused to someone else or their property, including legal fees and compensation claims up to the policy limit. It does not cover damages to your own person or property.
Why This Matters
Building protection for all shareholders. A well-managed buildings insurance policy coordinated through the company ensures consistent cover aligned with the responsibilities set out in the company’s Articles of Association. This clarity around maintenance obligations protects the wider structure for everyone.
Your personal protection. Your internal finishes and belongings are not covered by the company’s policy. Appropriate contents insurance protects you against loss, damage, or unforeseen events affecting your individual unit.
Lender requirements. Most lenders require confirmation that suitable insurance is in place both at company level and personal level. Arranging this early helps keep your transaction smooth and stress-free.
Shared responsibility with reassurance. As a shareholder, you have joint responsibility for the building. Knowing that comprehensive insurance is already maintained by the company provides reassurance that the structure and shared obligations are fully protected.
Share transfer insurance works as a shared responsibility system. The company insures the wider structure and common parts, whilst you insure the interior of your apartment and your contents. This ensures the building is safeguarded for all owners, whilst giving you flexibility and control over your personal cover.
Thinking about buying or selling a share transfer property? Dawn Barette, Residential Property Specialist, and our property team are here to guide you through every step. Get in touch to talk through your circumstances and see how we can help.
