Block of flats insurance

Block of flats insurance is for landlords that own – unsurprisingly - entire blocks of flats. The policy will provide comprehensive cover for the entire building, factoring in that the flats will either be leased or rented out by the freeholder. Block of flats insurance doesn’t just refer to large residential blocks – cover can be provided for commercial tenants as well as maisonettes or houses that have been converted into flats.

Insurance for blocks of flats can be complex, as there may be a number of parties that could have an insurable interest in the property. Whether or not you need to arrange cover for the buildings will depend on whether you’re the freeholder or the leaseholder, and what legal agreement you have in place. If you own the whole building and all of the flats within it, you are likely to be the freeholder and therefore responsible for arranging buildings insurance cover, or freeholder buildings insurance, for the property. If you own a lease on just one of the flats, you will usually only require cover for any contents you own. 

However, there are a number of different types of ownership and circumstances relating to flats that can affect who arranges the insurance. For example, in some cases separate leaseholders will team together to form a residents association or a ‘right to manage’ company. Once they take over the management of the building, the leaseholders will then be responsible for arranging buildings insurance, and the premium will usually be split fairly between all flats in the block. A block of flats can also sometimes have a managing agent who is appointed by the freeholder to manage the property day-to-day, including arranging insurance, so it’s important to check the agreement you have in place and what your responsibilities are before taking out block of flats insurance.

To make sure your investment is protected, you should consider whether you need buildings insurance for your block of flats – it may even be a requirement of your mortgage provider. Block of flats buildings insurance will provide cover for all major risks, such as fire, theft and flood. Consider every option, such as accidental damage, leaks, theft, or fire damage, and make sure you apply this to the flats themselves as well as any other shared areas you’re responsible for.

 Rules around leaseholders responsibilities are slightly different in Scotland, so we are able to offer buildings insurance for an individual flat on this basis. Please speak to the team to find out more.

As a freeholder of a block of flats, you may be responsible for insuring the buildings as well as the service and maintenance of the building itself and the surrounding grounds. This could include parking areas, pathways, shared corridors, and everything that needs to be maintained in those areas of the building. This general maintenance will not be covered by a block of flats buildings insurance policy, but is usually charged back to the leaseholder in the form of a ‘management fee.’ However, if you’re the freeholder then a specialist block of flats buildings insurance policy should meet your responsibilities to the leaseholders. 

Arranging your block of flats insurance doesn’t have to be a long-winded process. With Endsleigh, all you have to do is call our UK based team on 0333 234 0039 or click ‘arrange a call’ to fill out an enquiry form. We’ll then take the time to get to know you and your property or portfolio so we can ensure we’re getting you the right cover, at the right price from our leading panel of insurers. Once you’ve received your quote simply let us know when you want to go ahead and we’ll get you set up.

You may find that the standard covers provided by your block of flats insurance are not sufficient and that you would like to add on additional protection for your building. Endsleigh offer a range of optional extras which can easily be added to your policy, including:

• Employers' liability insurance
• Terrorism cover
• Engineering and inspection cover, including passenger lifts
• Extended legal expenses cover - including tenant disputes

This is a question only you can answer – but it’s worth bearing in mind that the government has recently updated their model tenancy agreement with the primary aim being to support people with pets become eligible to rent.

Use of the model tenancy agreement is entirely voluntary - however if you’re not currently allowing lets with pets, it could be a good time to re-think your stance.

The tenants with pets market is vast. Any landlord looking to rent their house quickly could increase their reach dramatically by advertising their properties as pet-friendly. Equally, the model tenancy agreement already includes rules to protect properties from poorly-behaved pets - so you could find that the financial reward of filling properties quickly far outweighs the losses caused by a boisterous pet.

If you do decide to let to tenants with pets, landlord insurance with Endsleigh gives you peace of mind that you’re covered against pet damage at no extra charge. Speak to our specialist property team for a quote.