UK Block of Flats Insurance Quotes
Block of Flats Insurance
One buildings policy for the whole block, covering the structure, communal areas and liability for freeholders, RMCs, RTM companies and managing agents.
Why compare block of flats insurance with us?
- Compare buildings and property owners' liability cover for a whole block
- Suitable for freeholders, RMC and RTM companies and managing agents
What is block of flats insurance?
Block of flats insurance is a single buildings policy that covers a whole block or converted building of leasehold flats, protecting the structure, roof and all communal areas against fire, flood, storm, escape of water, subsidence, malicious damage and theft. Cover centres on the building at its full rebuild cost and includes property owners' liability for injury to residents or visitors, with options for loss of rent, communal contents, terrorism cover and directors' and officers' cover for the board. It is arranged by whoever owns or manages the building, a freeholder, an RMC or RTM company or a managing agent, and the premium is usually recovered from leaseholders through the service charge, so individual leaseholders should not separately insure the structure.
Block of flats insurance covers a wide range of buildings because the risk itself varies so much. A purpose-built block, a converted Victorian house split into flats, a modern development with a lift and communal boiler, and a period building with commercial units on the ground floor all sit within block insurance, but each carries a different underwriting picture. Insurer appetite varies significantly by construction, height and the number of flats, which is why specialist broker placement matters more than a mainstream property quote.
Policies typically differ by how the building is owned and managed. Freeholder block insurance covers a single building held by the freeholder, with buildings, property owners' liability and loss of rent priced into the policy. Where leaseholders have taken control through an RMC or RTM company, the same block is insured by the company on behalf of everyone. The terms differ because the responsibilities and the parties differ at the underlying level.
Brokers on our panel underwrite blocks of flats every day. They understand the difference between rebuild cost and market value, why the whole block must be assessed rather than a single flat, how the average clause cuts a claim when the rebuild figure is set too low, and the tighter appetite for cladding, flat roofs, height and any commercial units. They price the policy against the real building rather than treating every block the same way.
Related property cover
How block of flats insurance works
Tell us about your block
Number of flats, rebuild cost, height and construction, any cladding or commercial units, communal features and any past claims. The more accurately you declare these details, the tighter the quotes the specialist underwriting panel can send back.
Compare specialist block quotes
Your details go to brokers who underwrite blocks of flats daily. They price buildings, communal contents, property owners' liability and loss of rent against your specific building and how it is managed.
Choose your cover and stay protected
Pick the policy that fits your block, whether you are a freeholder, an RMC or RTM company or a managing agent, and recharge the premium through the service charge.
What does block of flats insurance cover?
A single block policy insures the whole building at full rebuild cost and adds the liability, rent-protection and management cover lines that a freeholder, RMC, RTM company or managing agent needs for a block of leasehold flats.
Buildings at full rebuild cost
Cover for the whole building, including the structure, roof and all communal parts, against fire, flood, storm, escape of water and subsidence. The sum insured reflects a professional rebuild assessment for the block, not its market value.
Property owners' liability
Legal liability cover if a resident, visitor or member of the public is injured, or their property damaged, by a fault with the building. A block usually needs £5m to £10m, above the £2m typical of a single let.
Employers' liability
Cover of £5m where the block employs a caretaker, cleaner, gardener or handyman on site. It is a legal requirement once anyone works directly for the building, and most block policies include it as standard.
Loss of rent and alternative accommodation
Replaces lost rental income and pays for alternative accommodation for residents when flats become uninhabitable after an insured event such as a fire or flood, running until the building is repaired and safe to reoccupy.
Lifts, communal plant and engineering
Cover and statutory engineering inspection for lifts, communal boilers and other shared plant, alongside communal contents such as hallway carpets, lighting and shared furniture in the common parts of the block.
Terrorism and directors' and officers' cover
Terrorism cover, which mortgage lenders often require for a block, plus directors' and officers' cover and fidelity guarantee protecting RMC and RTM board members who run the building on behalf of leaseholders.
What block of flats insurance does not cover
A block policy is built around the declared number of flats, construction, occupancy, rebuild value and how the building is looked after. Once the block moves beyond any of those declared limits, the policy stops paying out. Knowing where the policy ends matters as much as knowing what it includes, particularly because underinsurance, empty flats and undisclosed facts such as cladding are the three biggest reasons block claims are reduced or declined.
Wear, tear and gradual damage
Loss caused by ageing, general deterioration, poor upkeep, slow-acting causes, rot, damp and corrosion falls outside the cover. The freeholder, RMC or RTM company is expected to keep the block in good repair. Insurance covers sudden and unforeseen events, not the slow results of neglect.
Unoccupied flats beyond the limit
Most policies restrict cover once a flat in the block has stood empty beyond a set limit, usually 30 to 60 days between lettings or during refurbishment. After that, perils such as escape of water, theft, malicious and accidental damage fall away unless you declare the empty flat and arrange specific cover.
Undeclared cladding or works
Premiums are rated on the building you declare. Failing to disclose cladding, a missing EWS1 form, external wall works or major refurbishment when the policy was priced for a standard block can leave a claim reduced or declined. Tell your broker about the construction and any works, and update them whenever the building changes.
Underinsurance and the average clause
Where the buildings sum insured falls short of the real rebuild cost for the whole block, the average clause applies and cuts each claim by the same proportion as the shortfall. A block insured for 75% of its rebuild value has every claim settled at 75%. Always insure at the full rebuild cost of the whole building, not market value and not the value of one flat.
Leaseholders' own contents and improvements
The block policy insures the structure and communal parts, not each leaseholder's furniture, belongings or internal improvements such as a fitted kitchen or new flooring. Those sit outside the building cover, so each leaseholder should arrange their own contents insurance. Check the lease for who is responsible for fixtures inside the flat.
Damp, leaks and general maintenance
Slow leaks, condensation, penetrating damp and problems that build up over time are treated as maintenance, not an insured event. Repairing a failing roof, blocked communal guttering or perished sealant is the freeholder or management company's responsibility, and any resulting damage is unlikely to be met.
How much is excluded differs widely from one insurer to the next and from one block to another. Always check the policy wording carefully on empty flat limits, rebuild value, cladding and material facts before buying. For a closer look at cover while a flat stands empty, see our unoccupied property insurance guide.
Who arranges block of flats insurance?
A block policy insures the whole building, so it is arranged by whoever owns or manages the block, not by an individual leaseholder. The premium is usually recovered from leaseholders through the service charge. These are the six parties who most often hold the cover.
Freeholders
Own the freehold and carry the legal duty to insure the structure of the whole block.
Resident Management Companies (RMC)
A company of leaseholders that manages the block and arranges the buildings cover.
Right to Manage (RTM) companies
Leaseholders who have taken over management rights and now place the block policy.
Share-of-freehold owners
Flat owners who jointly hold the freehold and share the cost of insuring the building.
Managing agents
Act for the freeholder or company, sourcing and renewing the policy on their behalf.
Developers of new blocks
Insure a newly built block before the freehold and management pass to residents.
What affects block of flats insurance costs
Block of flats insurance is case-rated, not priced from a fixed online figure. A small converted house of two flats sits in a very different bracket to a purpose-built tower of thirty flats with cladding and shops on the ground floor. Rather than a single rate, a specialist underwriter weighs the whole building: how it is built, how tall it is, how many flats it holds and what sits below them. Understanding which of these factors drives the premium puts whoever arranges the policy in a better position to ask the right questions before buying.
Set the rebuild value for the whole block correctly and declare the construction, height, cladding and any commercial units accurately at quote stage. Insurer appetite for blocks differs more than most freeholders and management companies expect. Some insurers will not write high-rise blocks, buildings with cladding, a large amount of flat roof or commercial units below the flats. Others specialise in exactly those risks. A specialist broker knows which insurer fits which building, so a block one insurer declines another will quote on sensible terms. Get the rebuild figure right too, because underinsurance triggers the average clause and cuts every claim payout proportionally.
MMC Block of Flats Insurance Specialists, FCA-authorised (reg. 916241)
Construction, height and storeys
A two-flat converted house rates very differently to a purpose-built block or a high-rise tower. Non-standard construction such as timber frame, single-ply flat roofs or system-built panels pushes the premium up, and every extra storey adds to the cost of access, escape of water and firefighting.
Rebuild value and sum insured
The single biggest price factor. A block insures on the full rebuild cost of the whole structure, roof and communal parts, not market value and not the value of one flat. Set it from a professional assessment, because underinsurance triggers the average clause and cuts every claim in proportion.
Number of flats and occupancy
The more flats in the block, the larger the sum insured and the wider the exposure to escape of water and communal claims. Who lives there matters too: student, social or short-let occupancy rates higher than long-term residential, and mixed occupancy narrows the panel of insurers willing to quote.
Location, flood and subsidence
Environment Agency flood zones, subsidence areas and local claims patterns all feed directly into rating, which is why an inner-city block can cost many times a quiet suburban one. In the highest-risk postcodes, flood and subsidence excesses on a block can run into five figures.
Claims history and flat roofs
Previous escape of water, flood or subsidence claims load the premium and can bring higher excesses or peril exclusions. A large amount of flat roof adds to it, since flat roofs fail sooner than pitched ones and drive a disproportionate share of block claims.
Cladding, EWS1 and commercial units
Since Grenfell, blocks with cladding or certain external wall systems face closer scrutiny, and insurers may ask for an EWS1 form or a fire risk appraisal before quoting. Commercial units on the ground floor, such as shops or restaurants, add fire load and lift the premium again.
Every block is rated on its own construction, height, occupancy and claims record. Compare block of flats insurance quotes to see how your building, its flats and its risk features shape the premium across our specialist broker panel.
How much does block of flats insurance cost?
There is no fixed online price for a block. A specialist underwriter rates each building on its own risk picture, so the factors below are what move the premium up or down.
| Factor | Why it matters |
|---|---|
| Number of flats | More units in the block means more value at stake and more exposure to claims. |
| Height and storeys | Taller blocks and higher-risk buildings cost more to insure and to reinstate. |
| Construction and flat roof | Non-standard construction and large areas of flat roof rate higher than standard brick and pitched roofs. |
| Cladding and EWS1 | Cladding or a missing EWS1 form raises premiums and can restrict the cover an insurer will offer. |
| Commercial units | Shops or offices in the block change the risk and are underwritten differently from purely residential buildings. |
| Rebuild sum insured | Must reflect a professional rebuild assessment for the whole block, not its market value or the value of one flat. |
A block is case-rated by a specialist, not priced from a fixed online figure. The premium for the whole building is usually recharged to leaseholders through the service charge.
How block of flats insurance works
Arranging cover for a whole building is straightforward once the risk is set out clearly. Three steps take you from the details of the block to quotes from brokers who insure blocks every day.
Tell us about the block
Number of flats, the height and construction, cladding status and the full rebuild value for the whole building.
Get matched with specialist brokers
Your details go to FCA-regulated brokers who underwrite block insurance and understand how a building is rated.
Compare quotes and arrange cover
Compare the quotes for the building and arrange the block policy that fits the freeholder, RMC or RTM company.
Cladding, safety and the Building Safety Act
Cladding, fire safety and building regulation now shape how a block of flats is insured. Since Grenfell, insurers look closely at external walls, height, construction and the safety duties that fall on those who own and manage the building. Open any section below for the eight cladding, safety and regulation topics that most affect a block buildings policy.
Cladding and external wall systems since Grenfell
Since the Grenfell Tower fire in 2017, blocks with cladding or certain external wall systems face far closer scrutiny from insurers. Combustible aluminium composite material (ACM) and similar panels sit at the centre of this, and the type of cladding on a block now shapes both the premium and whether cover is offered at all.
Insurers price for the fire risk the external walls present, so certification of the cladding type, any remediation already carried out and a clear plan for the rest all matter. Standard buildings cover rarely fits a block in this position. See our block of flats insurance guide for specialist cover.
The EWS1 form and fire risk appraisals
Insurers and lenders often ask for an EWS1 form (External Wall System) before they will quote on a block above a certain height. The form records whether the external walls have been appraised by a qualified professional and whether remedial work is needed.
A fire risk assessment of the whole building sits alongside this, covering escape routes, compartmentation, fire doors and communal areas. Up-to-date appraisals and a recorded action plan give underwriters the evidence they need and can widen the choice of insurers willing to write the block.
The Building Safety Act 2022 and higher-risk buildings
Higher-risk buildings, broadly those 11m and above or with at least seven storeys, fall under the Building Safety Act 2022. The Act brought new duties for those who own and manage these buildings and created the accountable person role and the Building Safety Regulator.
It also introduced leaseholder protections that limit what qualifying leaseholders can be charged for cladding remediation and related safety work. These duties and protections affect how a block is managed, and insurers will want to see that the responsibilities are being met.
Terrorism cover and lender requirements
Mortgage lenders often require terrorism cover on a block of flats as a condition of the loans secured against the individual leases. Standard buildings policies frequently exclude terrorism, so it is arranged as a specific extension or through a separate pool arrangement.
For a block, the freeholder or management company usually arranges terrorism cover across the whole building, with the cost recovered through the service charge alongside the main buildings premium. Confirming the requirement early avoids a gap that could hold up a leaseholder's sale or remortgage. See our block of flats insurance guide.
Flat roofs and construction type
How a block is built feeds directly into its rebuild cost and its risk profile. A large amount of flat roof carries higher escape of water and storm exposure, so insurers want recent inspection reports and a maintenance record for the roof.
Non-standard construction, timber or steel frame, concrete panel systems and older conversions all affect the terms. Full disclosure of how the block is built lets an underwriter rate it accurately rather than apply a cautious loading or restriction.
Commercial units on the ground floor
Many blocks have shops, offices or other commercial units at ground level with flats above. A mixed-use building brings the trade risk of the commercial tenant into the buildings policy, and a takeaway, restaurant or dry cleaner raises the fire and liability exposure for everyone above.
Insurers rate a mixed-use block on the nature of the commercial occupancy as well as the residential flats. Declaring exactly what trades occupy the ground floor is essential, since an undisclosed high-risk use can affect a claim on the whole building.
Rebuild cost assessment and the average clause
The buildings sum insured has to reflect a professional rebuild cost assessment for the whole block, not its market value and not the value of a single flat. Rebuilding communal areas, roofs and shared structure to current building standards is often more than owners expect.
If the block is underinsured, the average clause reduces every claim in proportion to the shortfall, so even a partial loss is only partly paid. A periodic reinstatement cost assessment by a qualified surveyor keeps the sum insured in line with actual rebuild cost.
FCA commission disclosure on multi-occupancy buildings insurance
The FCA now requires brokers to disclose the commission they earn on multi-occupancy buildings insurance to leaseholders. Because the premium is recovered through the service charge, leaseholders pay for the cover and are entitled to see what part of it is broker remuneration.
The rules also require brokers to act in leaseholders' interests when arranging the block policy and to show the cover represents fair value. This has improved transparency on what the service charge pays for and on how the block's insurance is placed.
Cladding, safety and building regulation all shape how a block is underwritten. Compare block of flats insurance quotes to see how your building's construction, height and safety status are rated across the MyMoneyComparison.com broker panel.
Who needs block of flats insurance?
Whoever owns or manages a block of leasehold flats needs a single buildings policy for the whole building, but who arranges it depends on how the freehold is held and how the block is managed. The policy insures the structure, roof and communal parts, not the contents of individual flats, and a leaseholder should never separately insure the building. The premium is usually recovered from leaseholders through the service charge.
Freeholders
Freeholders who own the building and grant the leases. Under the leases the freeholder is usually responsible for insuring the whole structure and communal parts, and recovers the premium from leaseholders through the service charge.
Resident Management Companies (RMC)
A Resident Management Company set up under the lease so leaseholders jointly run the block. The RMC arranges the block policy and holds directors' and officers' cover for the board members who serve on it.
Right to Manage (RTM) companies
A Right to Manage company formed by leaseholders to take over management from the freeholder without buying the freehold. Once management transfers, arranging the buildings insurance for the block becomes the RTM company's duty.
Share-of-freehold owners
Leaseholders who jointly own the freehold, often through a company holding the title. They arrange one block policy between them rather than each insuring their own flat, keeping the whole building on a single schedule.
Managing agents
Managing agents appointed by a freeholder, RMC or RTM company to run the block day to day. The agent places the buildings insurance on the client's behalf and must now disclose any commission earned to the leaseholders.
Developers of new blocks
Developers insuring a newly built or converted block before and during the sale of the flats. Cover runs from practical completion until the freehold or management passes to the residents or their management company.
Whoever holds or manages the freehold, the block needs one policy for the whole building. Compare block of flats insurance quotes to match the cover to how your building is owned, managed and occupied.
Block policy vs individual flat insurance
The two are often confused but do different jobs. A block policy insures the whole building on one buildings sum insured, arranged by the freeholder, a Resident Management Company (RMC) or a Right to Manage (RTM) company and recovered from leaseholders through the service charge. Individual flat insurance covers only a leaseholder's own contents and improvements, not the structure. Insuring a single flat separately for buildings risk is one of the most common causes of double insurance and disputes at claim stage.
| Comparison | Block policy Whole building, one policy | Individual flat insurance Leaseholder's own cover |
|---|---|---|
| What the policy insures | The whole building on one buildings sum insured: structure, roof, external walls and all communal parts, at full rebuild cost | Only the leaseholder's own contents and any improvements they have made inside the flat. The structure is not insured here |
| Who arranges it | The freeholder, an RMC, an RTM company or a managing agent acting for them arranges one policy covering the whole building | The individual leaseholder arranges their own contents cover for the inside of their flat. They do not arrange cover for the building |
| How it is paid for | The premium is usually recovered from leaseholders through the service charge, so every flat contributes to the single building policy | The leaseholder pays their own contents premium directly, separately from the service charge that funds the block policy |
| The structure and roof | Covered in full under the block policy, including shared roofs, foundations, external walls and load-bearing structure that no single flat owns outright | Not covered. A leaseholder's contents policy does not respond to structural damage, which remains the block policy's responsibility |
| Liability cover | Property owners' liability for the whole building, covering injury to residents or visitors caused by the structure or communal areas. Typically £5m or more for a block | Occupier's liability for the leaseholder inside their own flat only. It does not extend to the building or the communal areas |
| Contents and improvements | Communal contents only, such as hallway carpets, lighting and shared furniture. A leaseholder's own belongings are not covered here | The leaseholder's furniture, possessions and any fit-out or improvements made to the flat. This is the cover a leaseholder should hold |
| Insuring a flat separately for buildings | One block policy over the whole building avoids gaps and overlaps, and matches the lease, which normally requires the freeholder or management company to insure the structure | Separate buildings cover on a single flat risks double insurance with the block policy and disputes over which insurer pays. The lease usually does not allow it |
Important: Cover detail shown is indicative of how UK block of flats policies are typically structured. It is illustrative only and does not constitute a quotation or offer of insurance. Specific policy wording, sums insured, indemnity periods and exclusions vary by insurer and individual circumstances. MyMoneyComparison.com Ltd is authorised and regulated by the Financial Conduct Authority, FCA registration number 916241.
A block policy insures the whole building, while a leaseholder insures only their own flat contents. If you also let your flat to tenants, that letting needs separate landlord insurance, which sits alongside the block policy rather than replacing it.
Specialist Block of Flats Insurance
Specialist block of flats insurance comparison since 2013
Since 2013, MyMoneyComparison.com has helped freeholders, resident management companies and managing agents insure blocks of flats without the runaround. Whether you run a small converted house of two flats, a purpose-built block, a high-rise with cladding or an EWS1 requirement, or a mixed building with shops below the flats, our specialist broker panel underwrites blocks of flats every day. Compare specialist block of flats insurance from a panel that understands full rebuild cost, property owners liability, terrorism cover, loss of rent and the full range of UK block risks.
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Everything You Need to Know
Detailed answers to help you understand more about block of flats insurance.
Who is responsible for insuring a block of flats?
The freeholder, or a Resident Management Company, Right to Manage company or share-of-freehold company where leaseholders manage the building, arranges the block buildings policy. A managing agent often places it on their behalf. Leaseholders do not insure the structure themselves.
What does block of flats insurance cover?
It covers the whole building at full rebuild cost, including the structure, roof and communal areas, plus property owners’ liability, loss of rent, communal contents, lifts and engineering, and usually terrorism and directors’ and officers’ cover.
How much liability cover does a block need?
Property owners’ liability of £5m is a sensible minimum, and £10m is common for a block because of the number of residents and visitors. Employers’ liability of £5m is also needed if the block employs a caretaker, cleaner or gardener.
Who pays for the block policy?
The premium is usually recovered from leaseholders through the service charge. The FCA now requires brokers to disclose their commission on multi-occupancy buildings insurance, so leaseholders can see what the service charge is paying for.
Do leaseholders need their own insurance?
Leaseholders do not insure the structure, which is covered by the block policy, but they should insure their own contents and any improvements they have made, and check whether their lease makes them responsible for anything else.
How is the rebuild value worked out?
Through a professional rebuild cost assessment for the whole block, not its market value and not the value of one flat. Underinsuring the block triggers the average clause, which reduces every claim in proportion.
Does cladding affect block insurance?
Yes. Since Grenfell, insurers look closely at cladding and external wall systems, and may ask for an EWS1 form or a fire risk appraisal. Cladding can raise premiums, increase excesses or restrict cover, and higher-risk buildings fall under the Building Safety Act 2022.
Do we need terrorism cover?
Terrorism cover is often required by mortgage lenders for a block of flats and is commonly arranged through Pool Re. It is added to the block policy and is worth having given the number of leaseholders relying on the building.
What is directors' and officers' cover for a block?
It protects the volunteer directors of a Resident Management Company or Right to Manage company against claims arising from their decisions running the building. It is a sensible addition for any resident-led board.
Does it matter if there are shops in the building?
Yes. Commercial units such as shops or offices on the ground floor change the risk and the rating, so a mixed-use block needs a policy that reflects both the residential and commercial parts.
What happens if a flat in the block is empty?
Most block policies allow flats to be unoccupied for a set period. Longer voids, for example during a sale or refurbishment, should be declared so cover on the whole building is not affected.
Why use a specialist block of flats broker?
Blocks are complex, with communal areas, cladding questions, terrorism cover and board liabilities that mainstream sites cannot handle. A specialist broker arranges the right whole-building cover and makes sure it responds at claim time. MyMoneyComparison.com connects you with FCA-authorised specialist brokers.
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