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Buildings Insurance
for blocks of flats

Whether you’re a Residential Management Company (RMC), Right to Manage (RTM) company, or a freeholder, buildings insurance is one of the most important responsibilities when managing a block of flats.

It’s not just about protecting the bricks and mortar. It’s about safeguarding the financial interests of every leaseholder, meeting your legal obligations under the lease, and ensuring you’re covered if the unexpected happens.

Why standard home insurance isn’t enough

Blocks of flats require a specialist property owners insurance policy, not a standard home or landlord policy! These tailored policies are specifically designed for multi-occupancy residential buildings and provide cover for the unique risks and complexities that come with managing shared properties.

A suitable policy should include:

  • Full rebuilding cover (including outbuildings and communal areas)*
  • Property owners’ liability – for injuries or damage on communal property
  • Alternative accommodation or loss of rent following a major incident
  • Trace and access cover for locating leaks
  • Employers’ liability – if you employ staff or contractors
  • Optional extras like terrorism cover, legal expenses, or machinery breakdown
* Costs include the price of labour and materials and may include VAT subject to status, professional/ architects’ fess, demolition, site clearance and landscaping.

Choosing the right cover isn’t just smart,
it’s often a requirement under your lease.

Why it matters for RMCs and leaseholders

If your block is underinsured, inadequately insured, or insured on the wrong type of policy:

  • You may be in breach of lease
  • Claims may be partially or fully denied
  • The RMC or freeholder could be personally liable for shortfalls
  • Residents may be left without alternative accommodation or full repairs

In short, the right insurance helps ensure financial stability, legal compliance, and peace of mind for everyone involved.

The role of your insurance broker

When arranging insurance for a block of flats, it’s important to work with a broker who:

  • Understands the complexities of leasehold property and can clarify the small print
  • Has access to specialist property owners’ insurers for preferential rates and enhanced covers
  • Can guide you through the correct sum insured and risk information
  • Offers ongoing support for claims handling and mid-term changes

Equally important, your broker should be operating in line with the latest FCA regulations around Transparency and Fair Value (see below).

Transparency

You should be given a clear breakdown of premium costs, commissions, and fees, so leaseholders know exactly what they’re paying for.

Fair Value

Your policy should offer fair value, meaning the cover, service, and cost are proportionate and reasonable. Brokers and insurers are required to assess and demonstrate this under current FCA rules. Make sure your broker is open, accountable, and fully compliant. Especially when the cost of the premium is recharged to leaseholders via service charges.

Don’t leave it to chance

Buildings insurance is one of the most important contracts you’ll arrange on behalf of leaseholders. Make sure it’s the right one.

FlatGuard specialises in placing buildings insurance for blocks of flats, and we understand the responsibilities that come with managing multi-occupancy buildings. From assessing the rebuild cost to ensuring full regulatory compliance, we’re here to help you get it right.

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