Insurance Claims in Blocks of Flats: Step-by-Step Guide
A comprehensive guide to making a block insurance claim, covering buildings insurance claims for flats, damage to common parts, escape of water insurance, subsidence, storm damage, and the managing agent insurance claim process. Understand how block of flats insurance works, what is covered, who pays the insurance excess flats, and how to navigate the buildings insurance claim process from start to finish.
Introduction to Insurance Claims in Blocks of Flats
Making a block insurance claim can feel daunting, particularly if you have never been through the process before. Unlike a claim on a standard home insurance policy for a house, a block of flats insurance claim involves multiple parties, shared responsibilities, and a process that is typically managed by the building's managing agent on behalf of all leaseholders and the freeholder.
Buildings insurance for a block of flats is a single policy that covers the entire building, including its structure, communal areas, and in many cases the internal fabric of individual flats. When damage occurs, whether from an escape of water, storm, fire, or other insured peril, the claim is made on the block policy rather than on individual leaseholder policies. This means the buildings insurance claim process requires coordination between the managing agent, the insurer, loss adjusters, and the affected leaseholders.
This guide walks you through every stage of the claims process, explains who is responsible for what, and sets out how issues such as excess payments and disputed claims are handled. For an overview of how buildings insurance works in the context of leasehold property, see our dedicated guide.
Types of Insurance Claims in Blocks of Flats
Block of flats insurance policies cover a range of insured perils. The most common types of buildings insurance claims in residential blocks are set out below. Each type of claim has its own characteristics, and some attract higher excesses or require specialist assessment.
Escape of Water
Escape of water insurance claims are the single most common type of claim in blocks of flats. They occur when water escapes from pipes, tanks, heating systems, or appliances and causes damage to the building fabric or to other flats. In a block, an escape of water in one flat can cause cascading damage to the flats below, making these claims particularly complex and costly. Managing agents must act quickly to mitigate the damage and engage with the insurer at the earliest opportunity.
Storm Damage
Storm damage claims arise when high winds, heavy rain, hail, or lightning cause damage to the building. Common examples include damage to the roof, dislodged cladding, broken windows, and water ingress through the building envelope. For a claim to be valid as storm damage, the insurer will typically require evidence that the weather conditions were genuinely extreme. Routine wear and tear or gradual deterioration is not covered, even if it becomes apparent during a storm.
Subsidence
Subsidence claims relate to the downward movement of the ground beneath the building, which can cause cracking and structural damage. These are among the most serious and costly claims and involve specialist investigation by structural engineers and geotechnical consultants. The excess on subsidence claims is typically much higher than for other types of claim, and the resolution process can take many months or even years.
Fire and Vandalism
Fire damage and vandalism are also covered under most block of flats insurance policies. Fire claims can range from minor incidents confined to a single flat to catastrophic events affecting the entire building. Vandalism claims cover deliberate damage to the building or its communal areas. In both cases, the managing agent should notify the insurer immediately and arrange for the building to be made safe, including arranging emergency repairs where necessary to prevent further damage or risk to residents.
The Claims Process Step by Step
Understanding the buildings insurance claim process helps leaseholders know what to expect and ensures that claims are handled efficiently. The process typically follows these stages, though the exact steps may vary depending on the insurer and the nature of the claim.
- Report the incident to your managing agent immediately, providing full details of the damage, when it occurred, and any photographs or evidence
- The managing agent notifies the insurer and provides the policy number, details of the incident, and any supporting documentation
- The insurer reviews the claim and may appoint a loss adjuster to inspect the damage and assess the cost of repairs
- The loss adjuster visits the property, assesses the damage, and prepares a report for the insurer with a recommended settlement figure
- The insurer reviews the loss adjuster report and decides whether to accept, partially accept, or decline the claim
- If accepted, the insurer agrees a settlement and the managing agent arranges for the repair or reinstatement works to be carried out
- The excess is collected from the relevant party, either the service charge fund or the leaseholder responsible
- Repair works are completed and the insurer releases the settlement funds, either directly to the contractor or to the managing agent
Throughout the process, the managing agent should keep affected leaseholders informed of progress and any decisions made by the insurer. If your managing agent is not communicating effectively, you have the right to request updates and to raise concerns through the building's directors or residents' management company.
Who Handles What: Managing Agent, Insurer, and Loss Adjuster
A managing agent insurance claim involves several parties, each with a distinct role. Understanding who does what helps leaseholders know where to direct their questions and concerns throughout the claims process.
The Managing Agent
The managing agent is the first point of contact for leaseholders when damage occurs. They are responsible for notifying the insurer, providing policy details, coordinating access for inspections, obtaining repair quotes, and overseeing the reinstatement works once the claim is approved. A good managing agent will also advise leaseholders on what the policy does and does not cover, help with the paperwork, and chase the insurer or loss adjuster if there are delays. At Block, our team handles insurance claims as part of our comprehensive management service.
The Insurer
The insurer underwrites the block of flats insurance policy and is ultimately responsible for deciding whether a claim is valid and how much to pay out. The insurer will assess each claim against the policy terms, including the insured perils, exclusions, and excess. For larger or more complex claims, the insurer will appoint a loss adjuster to assess the damage on their behalf. The insurer's decision is based on the evidence provided and the terms of the policy.
The Loss Adjuster
A loss adjuster is an independent professional appointed by the insurer to investigate the claim, assess the extent of the damage, and recommend a settlement figure. They will visit the property, inspect the damage, review repair estimates, and prepare a detailed report for the insurer. Loss adjusters act on behalf of the insurer, not the policyholder, so their assessment may differ from the managing agent's or leaseholder's view of the damage. If you disagree with a loss adjuster's findings, you can challenge them through your managing agent or appoint your own independent assessor.
Common Parts vs Individual Flat Damage
One of the most common areas of confusion in block insurance claims is the distinction between damage to common parts and damage to individual flats. Understanding this distinction is important because it determines how the claim is handled and who is responsible for arranging and paying for repairs.
Common Parts Insurance
The common parts insurance element of a block policy covers the shared areas of the building, including hallways, stairwells, the roof, external walls, foundations, and any communal facilities such as gardens, parking areas, or bin stores. When damage occurs to these areas, the claim is made on the block policy and the managing agent coordinates the repair works. The cost of any excess is typically met from the service charge fund, as the common parts are the collective responsibility of all leaseholders. For more on communal repairs, see our dedicated guide.
Individual Flat Damage
Damage within an individual flat may or may not be covered by the block policy, depending on the policy terms and the lease. Many buildings insurance policies for blocks of flats cover the internal structure of each flat, including walls, ceilings, floors, and fixed installations as originally built. However, the policy will not cover personal belongings, contents, or improvements made by the leaseholder. If damage to your flat is caused by an insured peril, the managing agent can submit a claim on your behalf for the elements covered by the block policy. For anything not covered, you would need to claim on your own contents insurance.
Cross-Flat Damage
Cross-flat damage occurs when an incident in one flat causes damage to neighbouring flats. This is particularly common with escape of water claims, where a leak in an upper flat can cause extensive damage to the ceilings, walls, and floors of the flats below. In these cases, the block policy will typically cover the damage to all affected flats, but questions about who pays the excess can become contentious. The managing agent's role is to ensure that all affected parties are included in the claim and that the reinstatement works address all of the damage caused by the incident.
Excess Payments and Service Charge Implications
The insurance excess flats must pay is one of the most frequently raised issues in block insurance claims. Understanding how the excess works and who is responsible for paying it helps to avoid disputes and ensures that the claims process runs smoothly.
How the Excess Works
Every block of flats insurance policy includes an excess, which is the amount that must be paid before the insurer will cover the rest of the claim. The excess varies by policy and by claim type. Standard excesses for routine claims may be a few hundred pounds, while escape of water and subsidence claims often carry significantly higher excesses. The excess is deducted from the settlement, meaning that the total repair cost must exceed the excess for the claim to be worthwhile.
Who Pays the Excess
Who pays the excess depends on the terms of the lease and the circumstances of the claim. For damage to common parts, the excess is usually paid from the service charge fund and shared among all leaseholders. For damage caused by or affecting a specific flat, the lease may allow the managing agent to recover the excess from the individual leaseholder responsible. This is particularly common in escape of water claims where the source of the leak is within a particular flat. Disputes over excess payments should be referred to the lease terms in the first instance.
Impact on the Service Charge
Insurance claims can affect the service charge in several ways. Where the excess is paid from the service charge fund, this represents an additional cost that must be recovered from leaseholders. More significantly, a history of claims on the block policy can lead to increased insurance premiums at renewal, which are passed on to leaseholders through the service charge. Multiple or high-value claims can also result in increased excesses, exclusions being added to the policy, or difficulty obtaining competitive insurance quotes. Managing agents should ensure that claims are only made when appropriate and that leaseholders are aware of the potential impact on future premiums.
Disputes and When Claims Are Declined
Not every block insurance claim is accepted by the insurer. Understanding why claims are declined and what options are available when a dispute arises is important for leaseholders and managing agents alike.
Common Reasons for Declined Claims
Insurers may decline a buildings insurance claim for several reasons. The most common include: the damage was caused by wear and tear or gradual deterioration rather than a sudden insured peril; the damage falls below the policy excess; the claim relates to a peril that is excluded from the policy; the policyholder failed to maintain the building adequately; or the claim was not reported within the required timeframe. Lack of maintenance is a particularly common reason for declined claims, as insurers expect the building to be kept in a reasonable state of repair. Managing agents have a responsibility to ensure that routine maintenance is carried out and documented, both for the benefit of the building and to support any future insurance claims.
Challenging a Declined Claim
If a claim is declined and you believe the decision is wrong, the managing agent can challenge it on your behalf by providing additional evidence, obtaining independent assessments, or escalating the matter through the insurer's complaints procedure. If the insurer maintains its decision, the policyholder can refer the complaint to the Financial Ombudsman Service, which provides an independent review of insurance disputes. It is important to keep detailed records throughout the claims process, including all correspondence with the insurer and loss adjuster, as these will be essential if the decision is challenged.
Uninsured Damage and Repair Costs
When a claim is declined or where damage is not covered by the policy, the cost of repairs must be met by the building. For damage to common parts, this cost will typically be recovered through the service charge or reserve fund. For damage within an individual flat that is not covered, the leaseholder is responsible for arranging and paying for their own repairs. In either case, the managing agent can assist by obtaining quotes from approved contractors and overseeing the works. See our communal repairs guide for more information on how repair costs are managed within blocks of flats.
Frequently Asked Questions About Insurance Claims in Blocks of Flats
How do I make an insurance claim in a block of flats?
To make a block insurance claim in a block of flats, you should first report the incident to your managing agent as soon as possible. The managing agent is typically responsible for administering the buildings insurance policy on behalf of the freeholder or residents' management company, and they will coordinate the claims process with the insurer. You should document the damage thoroughly with photographs and written descriptions, and keep records of any emergency repairs or temporary measures you have had to arrange. The managing agent will then notify the insurer, provide the policy details, and help you complete the claim form. Depending on the nature and value of the claim, the insurer may appoint a loss adjuster to assess the damage in person before the claim is approved. It is important to act quickly, as most policies require claims to be reported within a specified timeframe.
Who handles insurance claims in a managed block?
In a managed block of flats, insurance claims are typically handled by the managing agent on behalf of the freeholder or residents' management company. The managing agent acts as the main point of contact between the leaseholders, the insurer, and any loss adjusters or contractors involved in the claim. Their role includes notifying the insurer of the incident, providing policy documentation, coordinating access for inspections and assessments, and overseeing any reinstatement or repair works. Some managing agents have dedicated insurance teams or work with specialist insurance brokers who can assist with more complex claims such as subsidence or large escape of water events. The freeholder remains the policyholder in most cases, but the day-to-day management of the claim is delegated to the managing agent as part of their management responsibilities.
Does buildings insurance cover escape of water in flats?
Yes, most buildings insurance policies for blocks of flats do cover escape of water, which is one of the most common types of claim in residential blocks. Escape of water refers to damage caused by water leaking from pipes, tanks, heating systems, or appliances within the building. The policy will typically cover the cost of repairing the damage caused by the water, including damage to walls, ceilings, floors, and fixed installations. However, it is important to note that buildings insurance generally does not cover the cost of repairing the source of the leak itself, such as a burst pipe or faulty fitting, only the consequential damage. There may also be an excess payable on the claim, and some policies include specific escape of water excesses that are higher than the standard policy excess. Leaseholders should check with their managing agent to understand the exact terms and exclusions of their block insurance policy.
Can I claim on the block insurance for damage to my flat?
Whether you can claim on the block insurance for damage to your individual flat depends on the terms of the buildings insurance policy and the nature of the damage. Buildings insurance for a block of flats typically covers the structure of the building, including walls, floors, ceilings, roofs, and communal areas. In many cases, the policy also extends to cover the internal fixtures and fittings of individual flats as originally installed by the developer, such as fitted kitchens, bathroom suites, and built-in wardrobes. However, the policy does not usually cover your personal belongings, furniture, or any improvements you have made to the flat, which would fall under your own contents insurance. If damage to your flat is caused by an insured peril such as escape of water, fire, or storm damage, you may be able to claim on the block policy for the structural and fixed elements. You should contact your managing agent to confirm what the policy covers in your specific case.
What is the excess on buildings insurance for flats?
The insurance excess on buildings insurance for flats is the amount that must be paid towards any claim before the insurer will cover the remainder. The excess varies depending on the policy, the insurer, and the type of claim being made. Standard policy excesses for blocks of flats typically range from two hundred and fifty pounds to one thousand pounds, but certain types of claim carry higher excesses. Escape of water claims, for example, often have a separate and higher excess, sometimes ranging from five hundred pounds to two thousand five hundred pounds or more. Subsidence claims also attract a significantly higher excess, which can be several thousand pounds. Who pays the excess depends on the circumstances of the claim and the terms of the lease. In many cases, the excess is paid from the service charge fund or passed on to the leaseholder whose flat is affected or who caused the damage. The managing agent will be able to confirm the excess levels on your block insurance policy.
How long do block insurance claims take to settle?
The time it takes for a block insurance claim to be settled varies significantly depending on the complexity and value of the claim. Straightforward claims for minor damage, such as a small escape of water affecting one flat, may be assessed and settled within four to eight weeks. However, more complex claims involving multiple flats, significant structural damage, subsidence, or disputes about the cause or extent of the damage can take considerably longer, sometimes six months to a year or more. The process involves several stages: initial notification to the insurer, appointment of a loss adjuster if required, inspection and assessment of the damage, agreement on the scope and cost of repairs, and finally the settlement and completion of reinstatement works. Delays can occur at any stage, particularly if there are disagreements between the parties about the extent of damage or the cost of repairs. Your managing agent should keep you informed of progress and chase the insurer where necessary to avoid unnecessary delays.
Need Help With a Block Insurance Claim?
Whether you are dealing with an escape of water insurance claim, storm damage, subsidence, or any other buildings insurance claim in your block, Block is here to help. Our experienced team manages the buildings insurance claim process from notification to settlement across hundreds of buildings nationwide. We work with leading insurers and loss adjusters to ensure your block insurance claim is handled professionally and resolved as quickly as possible.