Get the Right Flats Insurance

Get the Right Flats Insurance

Getting the right flats insurance is important, but it can be a difficult thing to achieve. Whether you’re a freeholder, leaseholder, director of a Right to Manage Company (RMC) or a Property Managing Agent, getting the right flats insurance is vital if you are to protect yourself and comply with the requirements of the lease.  And let’s not forget, the ramifications of not having the right flats insurance can be severe:

  • Failure to have the right flats insurance can result in hardship for flat owners
  • Failure to have the right flats insurance can lead to Directors being personally financially liable should something go wrong

Flats insurance is a complex area, and so in this article I’ll try and explain some of the issues involved to help you get the right flats insurance and save yourself money, legal headaches and time.

Get Sufficient Flats Insurance Cover

Flats insurance policies often contain multiple sections with confusing terminology – such has been the flats insurance industry’s way, alas!  One of the key ones, however, is the ‘Buildings Section’, sometimes known as the ‘Insured Property‘, ‘Property Damage‘, ‘Buildings of the Flats‘ or ‘Material Damage‘ section.  Whatever the term used, this is the part of the flats insurance policy that refers to the bricks and mortar of the building and protects it from ‘risks’ such as fire, water or malicious damage.   What is and what isn’t covered by the buildings section of the flats insurance policy varies:

  • A ‘Specified Perils’ flats insurance policy covers only specific, named risks – such as fire or water damage
  • An ‘All-Risks’ flats insurance policy covers all known and potentially unknown perils

All-risks policies are usually slight more expensive, but given the peace of mind they give they are well worth the extra cost.  It’s worth noting here that neither of the above policy types cover the contents of flats.  Contents insurance is something individual leaseholders need to take out separately.

Terrorism, Liabilities, Directors & Officers and Lift Insurance Extensions

There’s more to flats insurance than just buildings insurance, and in this section we’ll look at some of the other key flat insurance extensions that you may wish to consider.

Terrorism Insurance Extension

Terrorism insurance covers damage to flats caused by acts of terrorism.  Terrorism insurance isn’t usually included in flats buildings insurance and is offered as an optional extra – one we at would strongly recommend you take up.  Terrorism insurance protects freeholders by fulfilling their responsibilities as set out in the lease if the lease calls for you to protect against all normally available insurance risks. Managing Director, Paul Robertson, is a leading authority on Terrorism Insurance for flats and you can read his most recent blog on it here.

Liabilities Insurance Extension

Liability insurance can include ‘Public Liability’, ‘Employers’ Liability’ or Directors and Officers Liabilitypolicy extensions.

  • Public Liability Insurance covers scenarios such as if a visitor to your flats was to slip on a wet floor in a communal area and went on to sue for compensation.  It is always included in’s policies.
  • Employers’ Liability Insurance, often referred to as ‘EL’, is an inexpensive flats insurance extension to take up.  It covers you in the event of an employee being injured on the course of their work.

Directors and Officers Insurance Extension

Directors and Officers insurance covers individual members of Right To Manage companies against legal action following ‘wrongful acts’ such as negligence, misleading statements or defamation.  The potential for error – and therefore legal action – is very real and in’s opinion, a Directors and Officers extension is well worth taking out.

Lift Inspection and Breakdown Insurance Extension

Lift Inspection and Breakdown insurance is good to have if you have a lift in your block of flats.  By law, lifts in flats need to be inspected every six months by a ‘competent authority’ and you need to hold copies of these reports. can extend your Lift Inspection and Breakdown insurance to cover other machinery in your flats, such as automatic parking barriers and electric gates, so for a small premium you can get a lot of extra peace of mind.

Well, I hope that’s helped clarify things with regard getting the right insurance for your flats, but if you would like any more advice please don’t hesitate to contact the 1stsureflats team free on 0345 370 2842 or to get a free, no obligation quote click here.

Mike Hall