Considerations to take when purchasing your blocks of flats insurance.
Whether a few hundred thousand pounds or a few million pounds, owning a block of flats is a significant investment. As a landlord, freeholder or Residents Association, you should be aware of the importance of having the right insurance cover in place.
Claims from owners of blocks of flats are usually due to water escapes, subsidence and fire or flood damage. But, these are not the only considerations you should be aware of when it comes to your insurance.
Usually, as a block of flats owner, you will provide a maintenance contract to ensure the grounds and building of the property are looked after, this means you need to directly employ someone to undertake the required work – meaning your insurance cover will need to include employers liability as standard. Having public liability will cover you for any potential liability claims made by a visitor to the property who may trip or fall within the property.
Is your property valuation accurate?
When thinking about your property valuation it is important to remember that the value is not representative of the market value but of the cost to reinstate or rebuild (including debris removal and costs accumulated by surveyors) should the worst happen i.e a fire or subsidence causing the building to be knocked down.
Obtaining accurate figures for a rebuild can be difficult to determine, as methods of construction and work, especially carried out on listed buildings, can vary significantly based on the materials and craftsmanship required – meaning that the actual insurance value of the property may be much more than the current market value.
Other considerations when determining the value of the property for rebuild:
- Wooden floors will be more expensive to repair than a standard concrete floor
- Flat roofed buildings will generally cost more than a pitched roof as they are more prone to storm damage
Insurance For You
Bearing in mind the above, you should be insuring your property with an Insurer who is a specialist in this field. You should ensure that your policy derives from your exact requirements and that you get the cover that is RIGHT for you.
Your policy should always include alternative accommodation for your leaseholders and cover you for ‘Acts Of Terrorism’ (if you are located in a high risk area) if you have a resident management association Directors and Officers insurance should be taken out as well as the mandatory annual engineering inspection that will be required should your block flats have a lift.
At Glowsure we are happy to help with any queries you may have, discuss getting you the right cover or even review your current policy and discuss any gaps that may be missing.