Block building insurance
Insurance arrangements in a block of flats or apartments can be confusing. Our team at Property Insurance Centre have put together a quick guide to the different types of insurance that are relevant to help explain things:
You have responsibility for insuring the building and your policy must be suitable for rented properties if you are renting your flats out. If something happens like a fire or a flood you need to ensure you have the right insurance to pay for repairs or in the worst case for the building to be rebuilt. If you own more than one building you can take out one combined policy for all your properties. If you have any fittings or contents within the communal areas of the building you may want to take out contents insurance to cover this. Remember that you also need public liability insurance and if you have any employees you will also need employee liability insurance. If you rely on the income from your tenants to pay your bills, you may want to take out rent protection and alternative accommodation cover as well.
In many blocks of flats a management company will be in place and act on behalf of the owner/landlord. They will usually arrange all the necessary insurance on behalf of the landlord.
While a tenant is not responsible for insuring the building itself (that’s the landlord’s responsibility) you need to make sure you have home contents insurance for your possessions to ensure you can replace them if something happens to them.
If you have bought an apartment and have a mortgage, it is likely that the mortgage company will ask for you to take buildings cover in case something happens. If you don’t have a mortgage you don’t have to have buildings insurance cover – but it is advisable. You should also take out contents insurance to cover your belongings.
If you are insuring a block of flats remember that you need to insure the cost of rebuilding – not the market value of the building. That said, the cost of rebuilding will go up over time – so you will need to increase the value you insure.
If this all sounds a bit complicated and you aren’t sure what insurance you need – just give our team at Property Insurance Centre a call on 02891 800561 and they will happily talk you through it.