Block of Flats Insurance

The use of Block of Flats insurance is for an owner of multiple dwelling units on one property. The two main classifications with this type of building are purpose built and conversions. Both of them are commercial properties and are considered higher risk than it would be to insure a single family dwelling.

Who can take out a block flat insurance policy?

Because owners of this type of commercial properties may not actually be managing it, the task of obtaining insurance coverage can be given to another.

  • Director of a residential management company.
  • Director of a right to management company.
  • Lease holders.
  • Freeholder.
  • A resident assigned the task by the property owner.

What is covered with this type of insurance?

This is commercial property insurance that has a standard policy with an insurance agency. Each insurance policy will vary but most include the following;

  • Financially protects the building from accidental damage that can be from a fire, flooding, storms, theft or other.
  • Automatic adjustments of protection coverage due to an increase or decrease in inflation.
  • Inspection of pipes and the repairs of leaks on any of the building service piping systems.
  • Common area content replacement that includes carpeting in the entrance area, stairs and hallways.
  • The providing of secondary accommodations when one or more of the dwelling spaces are unlivable.
  • Common space building structures on the property are also covered that includes but not limited to outbuilding, garages, shelters, common grounds and garden areas.
  • Each policy holder is given one excess per claim no matter how many flats are damaged in the claim filing.
  • Costs are covered for replacement keys including those needed in common areas
  • Employers liability coverage for when employees are working in common areas.
  • Third Party liability coverage with an average upper limit of £10 million.

Additional items that can be covered

  • Terrorism clause can be added to protect the property and cover the cost of damage by an individual or group that causes it. Both extremism and political groups are included in this coverage.
  • Engineering inspections and maintenance of the systems can be covered to help keep the building’s equipment up and operating.
  • Legal expenses can be covered to handle the cost of debt recovery, contract disputes and other.
  • Director and Officers coverage to handle the legal fees when one or all of them are in disagreement with the owner and legal action is taken. 
  • Earthquake coverage is also available. This is not part of the standard policy but has to be added.

When taking out a policy make sure you state how tall the building is. With most insurance companies there is one policy for a building that is 10 stories or less. There is another policy for properties that have 11 or more stories.