Are you the owner and landlord of a block of flats which you let to your tenants? If so, you are likely to invested a considerable sum in the purchase of the block and may want to protect that investment in the most financially secure way possible – with block of flats insurance.
Block of Flats Insurance
What is block of flats insurance?
What is block of flats insurance?
Just as the term suggests, block of flats insurance is designed to safeguard an entire block of flats, rather than each dwelling separately.
The scope and nature of this kind of property insurance, therefore, immediately marks it out from standard home building and contents cover (which is designed for an owner occupier) and for many types of landlord insurance, where only one dwelling has been bought to let.
Since it is marked out as a special kind of insurance, therefore, you might want to consult the experts in the provision of such a niche insurance product – such as ourselves here at Specialist 4 Property Insurance.
What does it typically cover?
What does it typically cover?
The cover provided varies of course according to the particular block of flats to be insured and also depending on the particular insurer you choose – blocks of flats, after all, come in all shapes, sizes and values.
When it comes to insuring the structure and fabric of the building, however, normal property insurance considerations apply – namely that the total sum insured needs to be sufficient to cover the possible need for complete reconstruction in the event of a catastrophic insured incident.
Ownership of an entire block of flats represents a considerable business undertaking, with revenue from rents likely to reflect the nature and scope of the enterprise. In the event of a major insured incident damaging the block to such an extent that tenants are no longer able to live there, you may reasonably look to your block of flats insurance to provide some compensation for the loss of that rental income.
Your particular responsibilities and obligations to exercise an appropriate duty of care towards your tenants, their visitors and members of the public may expose you to substantial claims for damages if someone is hurt or has their property damaged. Public liability insurance – in a form that recognises your duty of care as a landlord – is typically an important component of block of flats insurance.
This insurance also typically covers communal areas, such as hallways and the main entry door etc.
Who is block of flats insurance suitable for?
Who is block of flats insurance suitable for?
The government sponsored Money Advice Service explains that individual tenants who occupy flats in such a block are likely to look to their landlord to arrange the appropriate building insurance.
The same applies to leasehold owners of individual flats – who may nevertheless be charged a proportion of the building insurance costs either as part of any management and service charge they pay or as a part of their annual ground rent.
Nevertheless, leaseholders may be well advised to check and confirm the situation with respect to the need for building insurance. If the leaseholders have banded together for the purchase of shares in the freehold, for instance, each may need to arrange the appropriate level of building insurance or, as a collective group, arrange building cover for the entire block.
Summary
Summary
If you are the owner of a block of flats, this insurance is likely to be an important means of protecting what is inevitably a very hefty investment.
Even as a leaseholder, however, there may be circumstances – especially if you each share part of the freehold – in which you may want the protection of block of flats insurance.
