What does "building insurance" cover in leasehold properties?

The correct choice highlights that "building insurance" primarily covers the structure of the property against specific risks, such as fire, flood, storm damage, and other perils that could compromise the integrity of the building. This type of insurance is essential for leasehold properties as it protects the financial interests of both the freeholder and the leaseholders.

Building insurance typically includes coverage for the walls, roofs, and other integral parts of the structure, ensuring that any necessary repairs can be carried out without imposing a financial burden on the leaseholders. This coverage is fundamental in maintaining the property's value and safety, allowing residents to live in a secure environment.

In contrast, the other options do not accurately reflect the scope of building insurance. Temporary residents' insurance refers to different kinds of coverage that protect individuals staying on a short-term basis, which is unrelated to the insurance covering the property structure itself. Contents insurance, which is often held by individual leaseholders, protects personal belongings within a flat but does not apply to the building's overall structure. Lastly, legal fees for disputes relate to legal matters rather than the physical protection provided by building insurance.