Blocks of flats insurance, sometimes referred to as block insurance, is a type of insurance policy that covers a variety of property types, including purpose built blocks of flat and houses that have been converted to flats. Freeholders, property management companies and leaseholders can purchase this type of policy to ensure that the property is covered.
Is Blocks of Flats Insurance Necessary?
No matter whether you’re a resident, own or manage a block of flats, block insurance is necessary. A typical buildings insurance policy may not provide the level of cover you need to ensure that your property is completely protected.
What Block Insurance Covers
Block insurance offers comprehensive cover to ensure that blocks of flats are protected. Cover includes:
Damage or Loss Caused By Storm, Fire, Escape of Water, Flood and Subsidence
If the flats are damaged or destroyed by a storm, fire, flood, block of flats insurance will cover the cost of repairs or the cost to rebuild.
A policy may cover the following:
- The building itself
- Garages, roads, pathways and car parks
- Contents in communal areas
It’s important to note that contents owned by tenants are not covered under this type of policy. Only communal items will be covered. Tenants are advised to purchase their own contents insurance to protect their belongings.
Subsidence can go unnoticed for years until it has caused structural damage, so it’s important to make sure that your block insurance covers this.
Property Owner’s Liability
Liability cover is crucial, especially for blocks of flats. As the property owner, you are held liable for the costs of damages awarded to members of the public who are injured while on your property. Costs associated with these damages are often substantial, so having this cover is especially important.
Loss of Rent
If damage or loss causes your property to become uninhabitable, loss of rent cover will allow you to reclaim back loss of rent.
In addition to loss of rent cover, blocks of flats insurance also offers alternative accommodation cover. This will cover the cost of relocating your tenants should the property become uninhabitable.
Malicious and Accidental Damage
What if your tenants damage your property intentionally or take items that do not belong to them? Malicious damage cover will protect you against these incidents and cover the cost of the damage or replace stolen items.
Accidental damage caused by tenants may also be covered under your blocks of flats insurance policy. This will protect the property’s fittings and floors.
These are the basic covers offered by a typical blocks of insurance policy. Additional products can also be purchased to ensure that you have comprehensive cover.
In addition to the core cover you will receive with your policy, you can also purchase additional cover to further protect your flats. These include:
- Employer’s liability: If you have staff members, maintenance workers or caretakers working on the property, this cover is essential. This will cover the cost of damages awarded to employees who are injured while on the property. It’s important to note that this will only cover people that you employ. If you hire an external company, this cover will not offer you protection.
- Rent guarantee: What if your tenant refuses to pay rent? Rent guarantee will cover this loss for all types of tenants, including students. Cover includes the cost of eviction as well as lost rental income.
- Legal expenses: Legal expenses can be quite high if injuries occur on your property or you’re forced to go through the eviction process. This supplemental policy will cover the cost of legal expenses for these types of incidents.
- Home emergency: While this is certainly not a mandatory policy, it’s a convenient one. Home emergency will offer your tenant’s immediate assistance if an emergency occurs. This assistance is available 24 hours a day, 365 days a year for emergency maintenance. It includes labour parts and call out fees for emergencies involving plumbing, home security, pests, heating and cooling system.
- Terrorism: If terrorist activities damage your property or cause losses, terrorism cover will provide you with important protection.
For freeholders and property managers, blocks of flats insurance provides you with essential cover that a typical buildings insurance policy may not be able to provide.