Block of Flat Insurance FAQ’s

Researching and investing in block of flat insurance may feel daunting. Here we provide some quick answers to some of the most common questions we are asked. Can’t quite find the answer you are looking for? Call our friendly advisor team today on 0800 731 6242 and we will be happy to help.

What is block insurance?

Block of flat insurance is one Buildings Insurance policy that covers all the flats and communal areas within a flat block premises, including external features and hardstanding. To ensure you and your block are fully covered, further insurance policies can be purchased for the block. These include Directors & Offices insurance, Legal Cover, Terrorism insurance, Engineering Inspection and Loss Recovery. Contact us to learn more today!

What can invalidate block of flats insurance?

There a few things to consider to ensure your block insurance cover is valid. Please avoid:

• Falsifying information on the statement of fact.
• Breaching conditions such as an Alarm Warranty upon a theft or not locking doors and windows.
• Breaching the minimal security

Can you get buildings insurance on a flat?

Who is responsible for buildings insurance on your flat depends on how you own your flat. If you are:

• The leaseholder - your freeholder should take care of the buildings insurance for the whole building but it's always worth checking your lease agreement for confirmation of who is responsible for arranging insurance. 
• Jointly own the freehold with other leaseholders - you are collectively responsible for making sure the whole building is insured.

What does building insurance cover in flats?

Your building insurance policy can cover the following:

• accidental damage
• third party damage
• fire, storm & flood damage
• terrorism (optional)
• loss of rent
• landlords contents

Who pays for building insurance on a block of flats?

If they have been appointed to be in charge for maintaining the services of the flat block, the buildings insurance premium would be paid by the Right To Manage, management company or the managing agent.

What is block management?

Block management is the managing of services to the building through service charges paid by the individual flat owners. Maintenance repairs, insurance, utilities, lifts, employees, daily maintenance of communal areas, all need to be managed. We advise all budgets should be set alongside regular communication with the lease/freeholders. An essential part of block management is balancing the management of all the areas whilst still getting good value for money!

What is a right to manage company?

A Right to Manage company gives the leaseholders the statutory rights to legally manage their property from the landlord. A company is set up where the servicing of the building is managed by the leaseholders instead of a Managing Agent. The Right to Manage (RTM) was introduced via the Commonhold and Leasehold Reform Act 2002.

How to manage a block of flats

Thinking of taking control and managing your own block? Start the process by applying for a Rights To Manage (RTM) agreement from the landlord or tender for a Managing Agent to manage the block on your behalf for a fee. Although the rights to manage route can be a lot of responsibility, it can be the cheapest and most efficient way to manage the Flat Block.

How much is Directors and Officers insurance?

The cost of Directors and Officers insurance can vary on how many flats are in the block and how much cover is required. The starting price for Directors & Officers with Flats Direct is £78.40 including insurance premium tax. 

What is Property Owners Liability Cover?

Property Owners liability cover protects landlords, freeholders and leaseholders against any incidents or claims made by third parties in respect of their legal liability for personal injury or property damage incurred to that third party, arising from the property owner’s responsibility for the premises.

How to calculate rebuild cost

The rebuild cost is an important part of your block of flats insurance. Although it may seem easy, calculating a rebuild cost for a property can be very different from the market value! Some things to consider include:

• The removal of debris from the site
• architects and other professional's fees
• the cost of labour and materials to complete the works.

Insuring for less than the true rebuild cost of a property is called 'Underinsurance' and your insurer could proportionately reduce your claim by the percentage underinsured you are. Unsure where to start? Save time and money with a Rebuild Cost Assessment from a Chartered Surveyor. Flats Direct can help arrange this for you at a significantly reduced price!

If you want to know about the different types of insurance for blocks of flats, call our team or email us today on info@flatsdirect-uk.com