Block Insurance for Flats
Comprehensive buildings insurance for flats arranged for your block of flats, ensuring your property and residents are properly protected.
What Is Block Insurance?
Block insurance is a comprehensive buildings insurance for flats policy that covers an entire block of flats under a single policy. Rather than each leaseholder arranging their own structural cover, the freeholder or managing agent arranges one policy that protects the whole building, including its structure, communal areas, shared fixtures and fittings, and third-party liability. This approach ensures there are no gaps in cover and simplifies administration for everyone involved.
Buildings insurance for flats is one of the most important financial protections for any residential development. Without adequate cover, a single incident such as a fire, major flood, or structural failure could leave leaseholders facing substantial repair costs with no means of recovery. At Block, we ensure every building we manage has appropriate, competitively priced block insurance in place at all times.
It is important to distinguish between buildings insurance for flats, which covers the structure and fabric of the building, and contents insurance, which covers personal belongings within individual flats. Leaseholders are responsible for arranging their own contents insurance separately.
What Does Block Insurance Cover?
A well-arranged block insurance policy provides broad protection for the building and its stakeholders. Standard cover typically includes:
We work with specialist insurance brokers who understand the unique requirements of blocks of flats to ensure cover is comprehensive and competitively priced. We also review policies annually to check that the rebuild value and cover limits remain accurate as building costs change over time.
Who Pays for Block Insurance?
The cost of buildings insurance for flats is typically recovered from leaseholders through the annual service charge. The freeholder or managing agent arranges the policy and pays the premium, then recharges the cost to leaseholders in proportion to their share as defined in the lease. This might be an equal split, a percentage based on floor area, or another formula set out in the lease terms.
Leaseholders have the right to request a summary of the insurance policy and to see evidence that the cover is adequate and the premium is reasonably incurred. Under the Landlord and Tenant Act 1985, all service charge costs, including insurance, must be reasonable. If leaseholders believe the insurance premium is excessive, they can challenge it at the First-tier Tribunal.
At Block, we are committed to transparency in all financial matters. We provide leaseholders with full details of the insurance policy, the premium paid, and the level of cover in place, so everyone understands what they are paying for and why.
How to Compare Block Insurance Policies
When comparing buildings insurance for flats, it is important to look beyond the headline premium. Cheaper policies may have lower cover limits, higher excesses, or significant exclusions that could leave your building exposed. We recommend comparing policies on the following criteria:
- Rebuild value and whether it accurately reflects current construction costs
- The level of public liability cover included
- Excess amounts for different types of claim
- Exclusions and conditions, particularly for flood and subsidence
- Whether terrorism cover is included or available as an add-on
- The claims process and average settlement times
- Whether the insurer specialises in blocks of flats
Our team handles the entire block insurance procurement process on behalf of the buildings we manage. We obtain multiple quotes from specialist brokers, compare cover like for like, and recommend the policy that offers the best combination of cover and value. Leaseholders are kept informed throughout, and we are always happy to answer questions about the insurance arrangements in place.
Frequently Asked Questions About Block Insurance
What is block insurance for flats?
Block insurance, also known as buildings insurance for a block of flats, is a single insurance policy that covers the entire building including the structure, communal areas, and shared fixtures and fittings. It protects against risks such as fire, flood, storm damage, subsidence, and third-party liability. The freeholder or managing agent typically arranges the policy, and the cost is passed to leaseholders through the service charge.
Who pays for buildings insurance in a block of flats?
The cost of buildings insurance in a block of flats is typically paid by leaseholders through the annual service charge. The freeholder or their appointed managing agent arranges the insurance policy, and the premium is divided among all leaseholders, usually in proportion to their share as defined in the lease. Leaseholders have the right to request a summary of the insurance policy and to see the cover in place.
Can leaseholders choose their own buildings insurance?
In most cases, the freeholder or managing agent is responsible for arranging buildings insurance for the entire block, and individual leaseholders cannot arrange their own separate buildings cover. However, leaseholders can nominate an alternative insurer for the managing agent to consider. Under the Landlord and Tenant Act 1985, the insurance premium must be reasonably incurred. Leaseholders should arrange separate contents insurance for their own belongings.
What does block insurance cover?
Block insurance typically covers the building structure including walls, roof, floors, staircases, and foundations; communal fixtures and fittings such as lifts, boilers, and entry systems; liability claims from third parties injured on the property; loss of rent if the building becomes uninhabitable; and damage caused by fire, flood, storm, subsidence, escape of water, and impact. Some policies also include terrorism cover and legal expenses.
How do I make a claim on block insurance?
To make a claim on block insurance, you should first report the incident to your managing agent or freeholder, who will notify the insurer and provide the claim reference. You will need to provide details of the damage, photographs, and any supporting documentation. The insurer will appoint a loss adjuster if necessary. Your managing agent should coordinate the claims process on your behalf and keep you informed throughout.
Is buildings insurance a legal requirement for a block of flats?
While there is no specific law mandating buildings insurance for all blocks of flats, most leases require the freeholder to arrange adequate buildings insurance as a covenant within the lease. Mortgage lenders also require buildings insurance as a condition of lending. In practice, buildings insurance is essential to protect the building, its residents, and the financial interests of all parties involved.
Need Block Insurance Arranged for Your Building?
Our team will source competitive, comprehensive buildings insurance for flats for your block of flats. Contact us for a free, no-obligation review of your current cover.