Purpose-built blocks, as well as house conversions often represent a significant investment for landlords, freeholders, investors/developers, property management companies, and the likes.
First off, every block of flats insurance needs are not the same, and there's no 'one cover fits all' policy. There are two types of flats: houses that have been converted into flats and purpose-built flats.
This means that insurance policies may differ.
Luckily, insurers often tailor this policy to one's requirements so they are covered only for what they need, and not end up paying for a cover they don't need.
That being said, here's what standard block of flats insurance policy will typically cover:
The physical building: A block of flats is a large space that is likely to incur damage at any time. Plus, tenants expect you to complete any necessary repairs as fast as possible. This policy will pay for structural damage due to an insured peril.
Some of the common perils include fire, theft, impact by vehicles or animals, lightning, water damage, theft, vandalism, etc. A total loss is the worst nightmare, but one you must prepare for. This policy will pay for the replacement of your flats in case they are completely destroyed by a covered peril.
Alternative accommodation: If your property becomes uninhabitable due to a covered peril, this policy will cover the cost of finding alternative accommodation for our tenant(s).
Property owners' liability: Covers you against any liability charges made against you due to your negligence as the flat owner/landlord/manager.
Employers' liability: Covers any persons employed to clean or maintain the flats.
Flats' contents: If you rent out your flat with furnishings, fixtures, fittings, and the likes, the policy will cover your contents against insured risks.
Communal contents: Covers items in the communal area, which ensures no ambiguity with communal spaces.
Loss of rent due to unoccupancy following an insured risk
Additional risks can also be covered on request at additional cost, of course.
This includes legal expenses, terrorism, engineering damage, floods, subsidence, lift inspection and breakdown insurance, accidental damage, and so on.
Some block of flats insurance policies are derived from generic property owners' policies and don't contain enough wording to meet landlords needs.
Here are a few key areas you should watch out for:
This is simply a guide; it's important to read and understand your policy before committing to it.