Block of flats insurance

Protect your properties with insurance designed for freeholders, leaseholders or management companies with blocks of flats.

What is block of flats insurance?

Often referred to as landlord insurance for flats, block of flats insurance helps protect landlords who own multiple units within a single building. Owning more properties can often mean greater risk for a landlord. That’s why block of flats insurance combines several policies to provide added protection, whether you’re the freeholder, leaseholder, or management company.

What does block of flats insurance cover?

• Buildings insurance – covers the physical structure of the building against risks such as accidental damage, fire, storm damage, flooding, vandalism, and malicious damage
• Liability insurance – protects landlords from legal claims arising from accidents or injuries on the property. It covers legal expenses and compensation payments if a tenant, visitor, or third party suffers injury or property damage due to the landlord’s negligence
• Legal expenses – covers legal expenses incurred in disputes with tenants, neighbouring property owners, or other third parties. This may include legal fees for eviction proceedings, property disputes, or defending against liability claims

These are brief product descriptions only. Please refer to the policy documentation paying particular attention to the terms and conditions, exclusions, warranties, subjectivities, excesses and any endorsements.

What type of flats can be covered?

Whether you own flats within a converted building or own an extensive portfolio of properties, block of flats insurance typically provides cover for:

• Purpose-built blocks – buildings constructed specifically as multiple-unit dwellings, often with shared amenities like common areas, entrances, and facilities
• Converted properties – buildings converted from other uses, such as warehouses, offices, or single-family homes, into multiple residential units
• Listed buildings – properties that are legally protected because of their historical or architectural significance
• Standard construction properties – flats in buildings constructed using conventional materials and methods without any unique or unusual features

How much does block of flats insurance cost?

The short answer is it depends. When calculating the total cost of your policy, insurers will usually determine a price based on:

• The location of the property – where your property is located plays a big part in how much your premium costs. Properties in areas prone to natural disasters, high crime rates, or with a history of insurance claims may have higher premiums
• Building characteristics – the age, size, and construction materials used to build your property can affect insurance costs. Older buildings or those built with non-standard materials may be more expensive to insure because of increased risks
• Security measures – security features such as burglar alarms, CCTV systems, secure entry systems, and fire alarms can help lower insurance premiums by reducing the risk of theft, vandalism, and fire damage
• Claims history – the property’s claims history, including previous insurance claims and losses, can impact insurance costs. Properties with a history of frequent claims may face higher premiums
• Level of cover – the extent of cover and the limits chosen for various insurance policy components, such as building value, and liability cover can affect the overall insurance cost

How to make a claim

If you need to make a claim , contact our friendly and experienced UK team on 01202 449611. Our in-house specialists are on hand to make your claims experience as simple and seamless as possible. For emergency claims you can contact 24 hours a day, 365 days a year.

Some of our partners

Engineering insurance and inspection services

Faulty mechanical, electrical, or lifting equipment can lead to hefty costs and disruptions for leaseholders and tenants. Detecting problems early with independent engineering inspections allows you to proactively plan for repairs and avoid costly issues. Click here for more information.

Group emergency assist insurance

Dealing with property damage can be overwhelming. Our group emergency assistance policy provides 24/7 support, 365 days a year. Designed for homeowners in blocks of flats, this policy covers emergency incidents in communal areas like stairwells, corridors, gardens, and access points. Click here for more information.

Terrorism insurance

Standard building insurance often excludes cover for terrorism-related damage. Terrorism policy can provide you with cover against damage to the buildings by terrorist action as defined up to the policy sum insured. The prevention of access to the building due to police or other emergency service action which necessitates alternative accommodation. Click here for more information.

Directors’ and Officers’ liability insurance for residential management companies

If you’re a director of your management company, a decision resulting in financial loss for someone else or unintentional non-compliance with regulations could lead to personal liability and costly fines. This insurance offers protection for directors and officers of residential management and right-to-manage companies if they’re sued for any alleged wrongdoing. Click here for more information.

Get a policy that meets your needs for your properties at Gallagher. Along with building insurance, liability insurance, and paid legal expenses as standard, you can add optional extras—such as engineering insurance and inspection services—to create a tailored policy ideal for your specific needs.

When it’s time to make a claim, our in-house specialists are on hand to make your claims experience as simple and seamless as possible. For emergency claims you can contact 24 hours a day, 365 days a year.

FAQs

Please note that these Frequently Asked Questions are not a substitute for the policy wording. For full terms and conditions please see the policy documentation.

What does building insurance cover in a block of flats?

It can cover the cost of repairs to the fabric of your building if it’s damaged by risks such as fire, storm, flood, and many others. The policy also usually covers loss of rent or alternative accommodation whilst repairs are carried out following an insured loss and your liabilities as a property owner to other parties if they’re injured on your property. You should always check your policy to understand what is and isn’t covered, as policies differ.

What building insurance do you need for a leasehold flat or apartment?

If you’re the leaseholder of a flat, the building is usually insured by the freeholder or the residents’ association. So you wouldn’t necessarily have to arrange building insurance, but you should check your lease. You may still have to contribute to the cost through your service charge, and you’ll still need to arrange your content cover.

Is the leaseholder responsible for arranging building insurance?

The lease will specify who must insure the building. This states that typically, it’s the freeholder’s responsibility to arrange the insurance and then include the cost in the service charge. However, many leaseholders combine and form a Right-to-manage (RTM) or Residential Management Company (RMC). As part of this, they can then arrange the insurance in the company name.

What is a standard buildings insurance policy?

This term is often found in a lease. It’s a term used to describe an insurance policy that’s arranged to cover all the flats in a block or (blocks on an estate) under a single policy, rather than each leaseholder arranging their policy.

Do I need Directors’ and Officers’ cover as a Right to Manage or Resident Management company director?

If you’re a director or officer of a Right to Manage or residents’ association, you can be held legally liable for mistakes or oversights in running your company or association, even if you’re a volunteer and not being paid. This could expose you to substantial personal financial loss. This type of policy can help protect you from this loss.

Is buildings insurance a legal requirement?

It’s not a legal requirement, but many property owners, including leaseholders who own flats and apartments, choose to take out buildings insurance to cover themselves against the cost of repairing damage to the building following an insured loss. Your mortgage lender usually requires that you adequately insure the building. Without evidence of insurance, you may be unlikely to get a mortgage.

Does block of flats building insurance cover rented properties, or do I need landlord insurance?

Like a landlord insurance policy, our block of flats insurance can cover the risks associated with renting out a property. For example, malicious and accidental damage by tenants, theft and attempted theft by tenants, and loss of rent. Check the wording of your block of flats insurance policy to see what’s included in your cover.

Does an individual flat need building insurance?

While building insurance isn’t a legal requirement for your flat, if you own or share the freehold, it becomes your legal responsibility to obtain buildings insurance.

It’s also important to review your lease terms to ensure adequate coverage. Sometimes, the service charges you pay may include an insurance fee, which could indicate that a policy is already in place.

If you can’t find the answer to your question above, please email us at UKinfo@ajg.com.

Can you cover more than one flat on block of flats insurance?

Yes, we can cover more than one property. From small, converted houses to large detached properties, warehouse and loft conversions, to purpose built blocks of all sizes.

What insurance do I need for a freehold block of flats?

You will need flat insurance or block of flat insurance as you will be legally responsible for the property and will need to take out the insurance.