Block of Flats Insurance: Whose Responsibility Is It?

Exactly who is responsible for providing block of flats insurance cover is still a source of confusion for many – it’s a question we at 1stsureflats.com get asked a lot.  So to clear up who’s responsible for providing block of flats insurance we’ve put together this short blog.  We hope that it clears things up, but if you’d like any further help please call the 1stsureflats.com team on 0345 370 2842 or email us on info@1stsure.com 

Block of Flats Insurance: Whose Responsibility Is It?

Responsibility for  block of flats insurance is normally defined within the lease and is stated under the freeholder’s covenants.  The lease will very often include a right for the freeholder to recover the cost of of the block of flats buildings insurance as part of the blocks’ service charge provisions.  It’s worth noting that failure to provide adequate block of flats insurance would be a breach of the lease, leaving the freeholder contractually liable should anything go wrong.  This though would not be the case, however, if the right to insure had been formally assigned to a management company, residents’ association, right to manage company etc.

Block of Flats Insurance: One Policy for the Entire Block of Flats?

Another question we get asked a lot is whether block of flats insurance should be taken out for the entire block or whether individual flats owners should make their own buildings insurance arrangements?  Our answer to this is always yes, you should always look to get a single block of flats insurance policy and there are a number of reasons for this:

•  Ease – if  each flat owner were to individually insure the buildings of their flat, dealing with a claim would become complex as multiple insurers would be involved, and if one flat had failed to arrange cover, then the claim would be further complicated
• Level of  Buildings Insurance Cover  – Buildings insurance policies have different levels of cover – 1stsureflats.com’s are provided on an all-risks basis, others are not – and a number of serious omissions could transpire leaving flat owners and freeholders vulnerable
• Cost – It’s far more cost effective for freeholders to take out block of flats insurance for the entire block and charge flat owners back than for them to arrange their own.  In short a single policy benefits everyone.

I hope that’s helped clarify things, but if you would like any more advice please don’t hesitate to contact the flats team free on 0345 370 2842 or to get a free, no obligation quote click here.

Mike Hall