Does your Block Building Insurance policy need updated?

With current restrictions in place across much of the UK, Block buildings are no different to commercial properties, in the sense that occupancy levels may start to reduce with the onset of job losses, and tenants perhaps unable to pay the rent. There will of course be many reasons for block buildings such as flats becoming partly or completely empty, and it is crucial for whatever the reason, you inform your block building insurance provider of this change.

This is critical to ensure you understand if there are any changes to the level of cover or if there are any extra conditions you must comply with due to levels of unoccupancy. Failure to tell your insurer can open you up to a whole host of problems. (Our own terms of business can be read here).

Top Tip – Any change to your insurance, make sure you tell the insurance company or your broker, no matter how irrelevant you think this may be. Small changes can affect the risk factor which in turn can affect your cover.

What do I need to tell my insurer?

Well, in the world of changes, pretty much everything if you want to keep on the right side of the insurer when there is a claim. However, there are some very import ones that may impact heavily on your block buildings insurance policy. Let’s have a look at some of the more common ones.

Get Quote

Block-Building-Insurance

Insurance under one roof

We are specialists in many types of insurance

When flats becoming unoccupied

Flats will become empty for a whole variety of reasons. A flat might have been leaseholder owned for example and is then sold to a new leaseholder. Not everything goes smoothly, so there may well be a period of unoccupancy. Tenants on a 6 months tenancy agreement (AST) may move on. There are of course many reasons. The important thing here is to tell your insurer. Every insurer is different, so their rules and conditions will vary to a degree – one common rule between them all, however, is to tell them of any changes to the occupancy or risk (as they like to call it).

Some insurers will simply note the change and keep cover as it is, except possibly excluding burst pipes cover to the empty flat. Some insurers may provide cover for some certain limited perils only, such as Fire, Lightning, Earthquake or explosion for example.  A different insurer may state limited perils cover will apply to the whole building (if there are a majority of empty flats). All policies are different and failing to tell your insurer, then you run the risk of being unaware of the cover or conditions – this can cause serious problems should you be unfortunate enough to have to make a claim.

Work taking place at the premises

Work taking place at the premises often go hand in hand with flats becoming unoccupied. Obviously, we are talking about extensive work, such as extensions and renovations which can affect your block building insurance policy in several ways.

Some insurer will have restrictions on the amount and type of work you carry out on buildings. Normally there will be a limit on the amount carried out or a limit on the costs of works exceeding the cost of the existing structure. To avoid you breaking the terms of the policy, it’s best to check in with your insurer before any work goes ahead. Your insurer will want to know some of the following to begin with:

  • Has planning permission been applied for
  • Has planning permission been approved
  • The cost of the works
  • The scope of the works
  • Is there JCT cover required

When there are works taking place at the premises, you will find that insurers apply what is called a ‘Contractors Exclusion’ or ‘Contractor’s Endorsement’. What this essentially does, is ensure that if any damage is carried out by the builder that the block building insurance policy provider is not responsible for making good any damage they have caused. This responsibility will fall on your Contractor’s Insurance Policy – so make sure they have a valid policy in place and ask to see it before they start. Any reputable contractor should not think twice about allowing you to see it.

What to take away from this

When you take a block building insurance policy, you will have received what is known as a Statement of Fact or Proposal form. This lists the questions the insurers have made and your answers to them. Read the small print, as it will also state that any change to the risk should occur during the life of the policy must also be declared to the insurer. This document will place any responsibility on the insured (that’s you), to tell them if there are any changes to the risk information noted on the document or any information that you feel is important for the insurer to know. This document will be referred to and relied upon heavily by the insurer in the event of any possible claim. When you inform the insurer of any change to the risk, you will be issued with amended Statement of Fact.

If you wish to discuss Block Building Insurance, or buildings which are part/completely empty or undergoing works then talk to one of our experienced and qualified brokers.

Block of Flats

block-of-flats-insurance-middle-icon-01

Home Insurance

Holiday-Home-Insurance

Residential Landlord

Land Liability

Commercial Property

Why choose the Property Insurance Centre

Independent advice by approachable staff online or by phone

Access to a wide range of insurers to source suitable insurance cover for your needs

Bespoke Insurance Schemes & Portfolio Policies available

We can tailor your policy to suit your exact needs to give you complete peace of mind

Competitive Premiums

Cover available for the buildings while the property is being converted, renovated or extended

Over 40 years experience working with the best insurers in the UK

Excellent communication so that you understand what risks you are insured against

Why choose the Property Insurance Centre

Independent broker with staff you can speak to by phone or online

Access to a wide range of insurers to source suitable insurance cover for your needs

Bespoke Insurance Schemes & Portfolio Policies available

We can tailor your policy to suit your exact needs to give you complete peace of mind

Competitive Premiums

Cover available for the buildings while the property is being converted, renovated or extended

Over 40 years experience working with the best insurers in the UK

Excellent communication so that you understand what risks you are insured against

Why choose the Property Insurance Centre

Independent broker with staff you can speak to by phone or online

Access to a wide range of insurers to source suitable insurance cover for your needs

Bespoke Insurance Schemes & Portfolio Policies available

We can tailor your policy to suit your exact needs to give you complete peace of mind

Competitive Premiums

Cover available for the buildings while the property is being converted, renovated or extended

Over 40 years experience working with the best insurers in the UK

Excellent communication so that you understand what risks you are insured against

Specialists in Commercial & Residential Insurance

We have over 40 years experience as Residential and Commercial Insurance Brokers. We find the right policy to suit your needs and understand the risks that a property owner can face in the course of ownership. We work closely with our Insurers to get the best rates and our experience and excellent relationships with them mean that we can provide cover for even the most difficult to place risks.

Whether you have an adverse claims history, a high value property or a large portfolio of properties, we can source suitable cover for you. Whatever your requirements, we can tailor a specialist property insurance policy to suit your exact needs and provide you with a range of quotes to choose from. Established in 1976, we are not a call centre but a specialist insurance broker with a traditional office mentality, where the client comes first.

Looking for a quote now? Give us a call on 0800 085 3761 or complete one of our quote request forms.

We are also authorised and regulated by the Financial Conduct Authority and you can view our registration here.

Get In Touch:

    We accept most payment types including:

    UK Call Handlers & Dedicated New Business Team

    Call Us on 0800 085 3761