Block of Flats Insurance
Insuring a block of flats can be a daunting task, particularly when there are numerous policies to consider. If the building you own contains two or more residencies, it counts as a block of flats and will need to be insured as such. Typically, you will be looking for cover that protects you and your tenants against damage and potential legal action resulting from claims made against you.
Moreover, you can find cover for financial elements like loss of rent and the costs of emergency accommodation should your block become uninhabitable for any reason. All these aspects can be combined under one overarching policy to give yourself and your tenants peace of mind.
What Kind of Insurance Do You Need?
Insuring a block of flats can be complicated as there are many caveats. For example, you may own the building outright and act as the sole landlord for all residencies within. In this instance, you would need to look at taking out specific landlord insurance as well as block insurance because they are considered mutually exclusive. If your block is overseen by a management company, they are likely to have the landlord insurance in place, meaning you would only have to take block insurance to look after services, tenants and building staff.
Typically, your block insurance should consist of the following features:
Buildings Insurance
Buildings insurance protects the structure of your block of flats, offering a payout for repairs and rebuilds should the property be damaged. If your building suffers damage from fire, flood, storm, or accidental damage, you will be able to claim back the costs of repairing the damage.
It is also worth checking whether outbuildings and the landscape or gardens surrounding your building are also covered – if not, there may be an option to add these on to your existing policy.
Contents Insurance
From individual flats to communal areas, all furniture and other contents needs to be covered. Whether these contents are damaged by outside forces such as fire and flood, or have been damaged by tenants residing in your flats, you can claim back the cost of repair or replacement of these items.
Consider communal areas as well, as hallways, lobbies and front desk areas, and general décor in these places can be covered by the same policy.
Optional Extras for Block of Flats Insurance
There are a number of optional extras you can include as part of your policy, some of which may be extremely useful. Of course, you do not want to leave yourself under-insured as, should a serious claim event arise, you could find yourself struggling financially with the associated costs.
The extra policy features you should consider include:
Property Owners Liability Insurance
This is a must-have for many landlords, particularly those that look after a block of flats. With hundreds of people coming and going through your building – from contractors to tenant’s guests – you need to have peace of mind that you will be protected should they make a claim against you. For example, if a guest of one of your tenants falls on loose carpet in a stairwell they may be injured. They are then well within their rights to make a claim, the costs of which you will be liable for should they win their case. Even if they do not win the case, the costs of defending yourself in court could be very high. With liability cover for property owners, you will have help paying legal fees and compensation.
Malicious Damage and Theft Cover
No one likes to think that their tenant is out to cause damage or vandalise their own home, however there is the chance of this happening. It is highly recommended that you consider insuring against this, thereby being able to claim the cost of putting right this malicious damage. If the tenant has stolen items that you own, you can also claim for these to be replaced.
Loss of Rent Cover
If one or more of your tenants cannot or refuses to pay rent for any reason, you will find your income stream significantly lessened. That is why loss of rent insurance is recommended for all landlords. There may be appropriate reasons – a tenant may be having health issues leaving them unable to work, or damage to their property leaves them refusing to pay rent – but these will still have a detrimental effect on your ability to conduct your business. In this event, loss of rent cover can provide you with a guaranteed income to the value of the rent you are missing until the dispute has been rectified.
Finding Competitive Quotes for Your Insurance
At Compare Landlord, we understand how stressful your job can be, which is why we aim to take away the strain of searching for quotes. We partner with a wide range of brokers who specialise in block of flats insurance, helping you create a policy that covers every possible situation that could arise.
Contact Compare Landlord today and compare the most competitive quotes for your block insurance.