When you’re managing a block of flats, block building insurance is one of those non-negotiable responsibilities. Without the right coverage, you could face serious financial risk if something goes wrong, like fire, flood, or even structural damage. As a landlord or freeholder, making sure your property is protected is critical—not just for you, but for your tenants, too.
This guide will break down what block insurance involves, why it’s essential, and how you can make the claims process easier when you need to.
Block building insurance is designed specifically for buildings that house multiple flats. It’s a bit more complicated than your typical home insurance, which usually only covers a single residence. With block insurance, the entire structure of the building is protected, including communal areas like stairways, hallways, and any shared spaces such as lifts or gardens.
This type of insurance is crucial because, without it, you could find yourself dealing with hefty repair bills for issues like fire damage, flooding, or even vandalism. Beyond that, many mortgage lenders won’t approve loans for properties within a block of flats unless the right insurance is in place.
If you own or manage a block of flats, having the correct block insurance is an absolute necessity. Block insurance covers you for a variety of risks, including structural damage from natural disasters or accidents, legal liability for injuries that occur in shared spaces, and even damage caused by tenants.
Without block insurance, you could be exposed to massive costs if something goes wrong. For example, if a fire breaks out in one flat and spreads to others, or if a leak in a communal area causes serious damage, you’d be responsible for covering those repairs yourself.
These kinds of costs can run into the tens or even hundreds of thousands of pounds, depending on the scale of the damage.
When choosing a block insurance policy, it’s important to ensure that it covers all the essential areas of risk. The right policy should protect you from unexpected costs and liabilities, while also offering flexibility for the specific needs of your building. Here are some key features to consider when selecting the best coverage for your property.
Having these features in your block building insurance policy ensures that you’re protected against common risks associated with managing a block of flats.
When insuring a block of flats, it’s essential to be upfront about the types of tenants you have. This can impact the level of cover your insurer offers and the price of your policy. For example, flats rented to students are often seen as a higher risk due to their shorter tenancies and the general wear and tear associated with this demographic.
On the other hand, unoccupied flats can also pose a risk. Empty properties are more vulnerable to things like leaks, which can go undetected for long periods, as well as burglary. By providing accurate information about your tenants, you ensure your policy offers the right protection, tailored to your building’s specific needs.
Filing a claim on your block building insurance doesn’t have to be complicated. If something happens, like a burst pipe or a fire, following the correct steps can make the process smoother:
By staying organised and following the correct procedures, you’ll ensure that any damage is quickly addressed, keeping your block of flats safe and sound.
Without the right block insurance, you could end up footing the bill for significant repairs. Worse still, if a major disaster occurs, like a fire or flood, you might find that your policy doesn’t cover the full cost of repairs, leaving you with a large financial burden.
It’s estimated that more than a million UK landlords are underinsured, meaning they don’t have enough cover to fully protect their properties. Avoid becoming one of them by reviewing your policy and ensuring it meets your building’s needs.
Block building insurance is essential for any landlord or freeholder managing a block of flats. It protects you from unforeseen costs, and also ensures your tenants are safe and your investment remains secure. Taking the time to review your block insurance policy can save you significant stress and financial loss in the long run.
If you haven’t reviewed your insurance policy recently, now is a good time to make sure your block is adequately protected. For more information or help finding the right block insurance policy, reach out to Legacy Block Management today.
