There are two key considerations when insuring estates:  the buildings, which can be a mix of flats and houses, and the communal areas.

While the buildings can be insured as a portfolio, in practice, each is likely to be independently managed and the cost of insurance will most likely be included in the service charges levied by the managing agents, freeholders or leaseholders.

Indeed, an appeal court ruling way back in 2015 established definitively that leaseholder-owned right to manage companies can only manage one self-contained building.

Communal areas on estates, on the other hand, can add a whole new level of complexity when it comes to insurance and not all insurers may have an appetite to offer cover, which can be prohibitively expensive. One alternative is to get comparative quotes for cover through what is known as a ‘scheme arrangement’, such as the one offered by Deacon.

At Deacon, our estate management policy, which includes public liability insurance, provides cover for communal facilities of complex estates. The estate may comprise multiple blocks of flats or a mix of blocks and houses.

The ‘facilities’ may simply be private roads but they can also extend to electric gates, street lighting and even communal play areas, swimming pools and gyms.

Your lease should tell you what is considered ‘Communal Estate’. This insurance can protect against the sometimes high cost of damage caused to the communal areas and assets.  Get a copy of our free guide HERE.



The sole purpose of this article is to provide guidance on the issues covered. This article is not intended to give legal advice, and, accordingly, it should not be relied upon. It should not be regarded as a comprehensive statement of the law and/or market practice in this area. We make no claims as to the completeness or accuracy of the information contained herein or in the links which were live at the date of publication. You should not act upon (or should refrain from acting upon) information in this publication without first seeking specific legal and/or specialist advice. Arthur J. Gallagher Insurance Brokers Limited trading as Deacon accepts no liability for any inaccuracy, omission or mistake in this publication, nor will we be responsible for any loss which may be suffered as a result of any person relying on the information contained herein.  The opinions and views expressed in the above articles are those of the author only and are for guidance purposes only. The authors disclaim any liability for reliance upon those opinions and would encourage readers to rely upon more than one source before making a decision based on the information.