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Guide To Insurance For Block of Flats Insurance 

Who needs building insurance for flats has a simple answer, the owner of the property. The real question is who can take out a building insurance policy for a commercial building that contains flats? This can be the owner of the property, a person or the rental association that leases the property, or a representative of a property management organisation assigned the task of managing the property for the owner or leaser.

Who needs building insurance for flats has a simple answer, the owner of the property. The real question is who can take out a building insurance policy for a commercial building that contains flats? This can be the owner of the property, a person or the rental association that leases the property, or a representative of a property management organisation assigned the task of managing the property for the owner or leaser.

Buildings Insurance for Flats

Multiquotetime works in partnership with Quote Zone who provide a simple form which once completed is submitted to a specialist panel of insurance providers. To get multiple quotes and start comparing, select start your quote and provide your requirements to a panel of UK brokers. The panel will be in contact via the telephone to provide you with a range of quotes. Cover is available for all property purchases within the UK, including buy to let, holiday homes and empty property insurance.

The use of Buildings Insurance for flats is for an owner of multiple dwelling units in 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.

When taking out buildings insurance for flats  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 fewer. There is another policy for properties that have 11 or more stories.

What is the difference between leasehold and freehold for flats ?

The landlord can own the freehold of a property and rents out individual flats. In other cases, the landlord can buy one or multiple properties within the block of flats, but does not own the building. If you simply purchase a unit in a building, then you are a leaseholder and the building is owned by another party that owns the freehold.

Right of Refusal Did you know?  Any landlord wishing to sell the  freehold of a building with flats will normally have to give the leaseholders first refusal.

Do I need landlord insurance for a flat?

Renting out a flat is much the same as renting out a house, and you will most likely need landlord insurance and not home insurance to provide you with cover. If there is a freeholder, they may organise the building's insurance, but please check with them and notify them if you do rent out your flat. If you have to take responsibility for the building's insurance, make sure that it also covers your intended rental activity.

Is the building sum insured the same as the value of the property?

The building sum is not directly related to the value of the property. The same house in two different postcards can easily have different values, as it is dependent on the neighbourhood. The building's cover is the amount required to rebuild the property and is normally a fraction of the actual property value.

What is buildings insurance for flats?

Building insurance for a property that contains flats is classified as a commercial type of investment property. These flats can be purpose built or conversion flats from a divided family dwelling or commercial building. Buildings insurance for maisonettes also falls under the building insurance for flats category.

The policy is made to financially protect the property of a ‘just in case’ situation if it becomes a reality. The cover will provide for the cost of repairs to the actual building, the term fabric of building is often used. In essence, it is cover for the repair of the buildings damaged by the insured perils that will include fire, flood, storm and many others. Refer to the policy in question for the exact list of perils covered and exclusions.

Also included in a standard commercial policy for building with flats is public liability cover. This cover can be as much as £10 million for protection if a third party makes a claim against the owner or the property for damages they claim are the responsibility of the property owner.

What is included in a policy for buildings insurance for flats?

A commercial building set up in a configuration for individual flats is classified as a multi dwelling unit. Because of that type of configuration, there are individual units that are connected by common areas. The common areas can include carpeted hallways and corridors, staircases, entrance points, gardens, parking areas and outbuildings. All of these areas are covered in a standard commercial building insurance for flats policy.

When taking out a policy, the height of the building has to be clearly stated. Insurance firms have two classifications of commercial building insurance for flats that include those that are 10 stories or fewer and those that are 11 stories or higher.

Are there add-ons that can be included with building insurance for flats?

Yes, there are additional items that can be included in this type of commercial policy. The most common is the inclusion of equipment and systems that keep the building habitable. This includes the heating and cooling, water distribution, electrical and security systems. In the policy, it can be stated that these systems are covered for repairs, maintenance, inspections and if needed, replacement if there is a problem.

  • Employer's liability cover is required for buildings that are maintained or operated by a person or group of people hired by the owner to maintain and operate the buildings.
  • Legal cover is protection just in case there is a problem involving a disagreement with a third party or a claim is made against the property or owner. This protection covers the cost of lawyers, solicitors, court costs, filing fees, settlements and arbitration hearings.
  • Key cover handles the cost of replacing locks and keys on common area doors and access points like gates.
  • Earthquake cover is not included in any standard policy for the protection of a building. Damage from this type of event requires a special amendment to a commercial building insurance policy.
  • Legal expenses can be covered to handle the cost of debt recovery, contract disputes and other. Read our guide to landlord legal expenses with zero excess to find out more on this popular product.
  • 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.

Buildings insurance for flats is the specific cover to protect the investment made when a commercial space is rented or leased where multiple people and families will live. The insurance will pay for the cost of repairs, maintenance and replacement of part or all of the building structure and its equipment.

Compare Buildings Insurance for Flats

A building's insurance for block of flats policy should be tailored to your specific needs. By completing one simple form provided by QuoteSearcher you will receive multiple quotes from a panel of UK specialist insurance providers. These quotes can be tailored to fit your exact requirements.

FAQ Block of Flats Cover

What Is A Leaseholder?

If you are a leaseholder, you do not outright own the property. The owner of the property is referred to as the freeholder or the landlord. As the leaseholder, you have a contract that lets you own the property for a fixed number of years. At the end of that period the ownerships reverts to the landlord.

What Is Block Of Flats Insurance?

Block of flats insurance is the term used to describe buildings insurance for all flats in a block under one policy, as opposed to each leaseholder arranging their own insurance. This cover is also applicable to maisonettes or houses that have been converted into flats. Like standard home insurance, it is intended to covert the cost of repairing the flay building if damaged by a accident, example fire or flooding. The cover also extends to fixture and fittings , example bathroom and kitchen fixtures.

Does Block Of Flats Insurance Have An Excess?

The block of flats policy will have an excess.  The excess for a block of last policy will be much higher than for a standard single house, as a small leak in one flat can cause extensive damage to other flats in the same building.  The excess will increase if the number of claims are excessive, but can also be reduced if no claims are made.

Is Buildings Insurance For Block of Flats A Legal Requirement?

Having buildings insurance is not a legal requirement, but if you have a loan on the property, the loan provider may stipulate that you have buildings insurance. Whilst not a legal requirement, it will cover repair bills resulting in any insured loss, example water damage.

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