Blocks of Flats Insurance

The responsibility for insuring a block of flats is usually down to the freeholder or the management company that oversees the building.

However, if the building is divided into leasehold flats, the policy may be arranged by the freeholder or a property management company on behalf of the leaseholders. Often, leaseholders will contribute towards the cost of the insurance through service charges or ground rent.

Building insurance generally covers leaks that originate from the structure of the building itself, such as a burst pipe or roof leak that causes water damage to the communal areas or individual flats. However, the specifics of the cover can depend on the cause of the leak and the policy wording.

For a leasehold flat, the freeholder or management company usually arranges the building insurance for the property. However, the leaseholders can contribute towards the cost of the insurance through service charges. The amount each leaseholder pays depends on the terms of the lease and the arrangements for the building.

The presence of cladding on a block of flats can have a significant impact on block of flats insurance, especially considering increased awareness of fire safety issues following high-profile incidents such as the Grenfell Tower fire.

Buildings with certain types of cladding, particularly flammable materials, or combustible cladding, may face higher premiums or more stringent requirements for insurance.

You should check with your broker and insurer on specific requirements regarding cladding.