Block of Flats Insurance
Focus Insurance arranges buildings insurance for blocks of flats for freehold owners, residents management companies, and right-to-manage companies across the UK. Speak to our team on 01733 263311, Monday to Friday, 9am to 5pm.
Who Is Responsible for Block of Flats Insurance?
If you own the freehold of a block of flats, arranging the buildings insurance is typically your responsibility. If the block is managed by a residents management company (RMC) or a right-to-manage (RTM) company, the RMC or RTM company is usually responsible for arranging the buildings insurance on behalf of all leaseholders.
Individual leaseholders cannot arrange their own buildings insurance for the block — this is the freeholder's or management company's obligation under the terms of the lease. Leaseholders may, however, arrange their own contents insurance for their individual flat.
What Does Block of Flats Insurance Cover?
Buildings Cover
Protection for the full structure of the block, including the roof, external walls, foundations, and communal areas, against fire, flood, storm, and other insured perils.
Property Owners' Liability
Cover for your legal liability as the building owner or manager for injury or property damage to leaseholders, tenants, and third parties.
Communal Areas
Cover extends to communal hallways, stairwells, lifts, car parks, and shared facilities within the building.
Subsidence
Cover for ground movement and subsidence — an important consideration for older buildings and those on certain soil types.
Engineering Inspection
Lift and plant inspection services may be available as part of or alongside a block insurance arrangement.
Directors and Officers Liability
Cover for RMC directors' personal liability when acting in their capacity as company officers.
Reinstatement Value vs Market Value
Buildings insurance for a block of flats should be arranged on the basis of the full reinstatement value — the cost to rebuild the property from scratch, including demolition, site clearance, professional fees, and materials. This is not the same as the market value or purchase price of the property.
Underinsurance is one of the most common issues we encounter when reviewing block insurance arrangements. If the sum insured is based on market value rather than reinstatement cost, you may be significantly underinsured — meaning that in the event of a major claim, the insurer's settlement may not cover the full cost of reinstatement.
Recommendation: A RICS-qualified surveyor can provide a reinstatement cost assessment (RCA) for your block. This is particularly important for older buildings, where rebuild costs may differ significantly from market value.
Leasehold Obligations and Insurance
Leaseholders are typically required under the terms of their lease to contribute to the cost of buildings insurance arranged by the freeholder or management company. This contribution is usually collected as part of the service charge.
Leaseholders may also wish to consider their own contents insurance for the interior of their flat, and leasehold cover for fixtures and improvements they have made to the property. These are separate from the buildings insurance arranged for the block.
Frequently Asked Questions
Who is responsible for arranging buildings insurance for a block of flats?
If you own the freehold of a block of flats, arranging the buildings insurance is typically your responsibility. If the block is managed by a residents management company (RMC) or right-to-manage company, the RMC is usually responsible. Individual leaseholders cannot arrange their own buildings insurance for the block — it is the freeholder's or management company's obligation. This is a material point and should be confirmed in the lease.
What is the difference between reinstatement value and market value for buildings insurance?
Buildings insurance should be arranged on the basis of the full reinstatement value — the cost to rebuild the property from scratch, including demolition, site clearance, professional fees, and materials — not the market value or purchase price. Reinstatement costs have risen significantly in recent years. If your sum insured is based on market value, you may be underinsured. A RICS-qualified surveyor can provide a reinstatement cost assessment.
Does block of flats insurance cover communal areas?
Yes. Buildings insurance for a block of flats typically covers the full structure of the building, including communal areas such as hallways, stairwells, lifts, and shared facilities. Property owners' liability cover for communal areas is also typically included. The exact scope of cover will depend on the policy terms and the insurer.
What are leaseholders' obligations regarding buildings insurance?
Leaseholders are typically required under the terms of their lease to contribute to the cost of buildings insurance arranged by the freeholder or management company. They cannot arrange their own buildings insurance for the structure. Leaseholders may wish to arrange their own contents insurance for their individual flat and may also consider leasehold cover for fixtures and improvements they have made.
Can I arrange block of flats insurance for a converted house?
Yes. Blocks of flats insurance can be arranged for purpose-built blocks and converted properties. Converted houses — particularly older conversions — may present different risk characteristics and the insurer will assess the property accordingly. Cover is subject to underwriting and insurer acceptance.
How do I arrange block of flats insurance through Focus Insurance?
Call our team on 01733 263311, Monday to Friday, 9am to 5pm, or use the contact form on our website. We will discuss the property, its management structure, and cover requirements to seek suitable terms from our panel of specialist insurers. Cover is subject to underwriting and insurer acceptance.
Speak to Our Team About Block of Flats Cover
01733 263311 | [email protected] | Monday–Friday, 9am–5pm
Or use our contact form at focusinsurance.co.uk/contact
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Block of Flats Guide
In-depth guide to block of flats insurance in the UK.
Information provided for general guidance only. Cover is subject to underwriting, insurer terms and acceptance. Terms and conditions apply. Focus Insurance Services is a trading name of Captios Limited, authorised and regulated by the Financial Conduct Authority (FCA Registration No. 717691). Registered in England and Wales, Company No. 09620500.