What Does Block of Flats Insurance Usually Cover?
A section-by-section look at what a block of flats policy usually includes, what sits outside it, and the optional covers blocks are commonly asked about.
Block of Flats · 26 August 2026 · 7 min read
Block of flats insurance is a package rather than a single product. Understanding which section of the policy responds to which event makes it much easier to see where the gaps are.
Buildings
The core section. It covers the physical structure of the block against insured perils — typically fire, lightning, explosion, storm, flood, escape of water, impact, subsidence (where included), malicious damage and theft damage.
"Buildings" in a block policy normally extends beyond the shared parts to include the structure of each individual flat: floors, ceilings, internal walls, fitted kitchens and bathrooms, and often original fixtures. The exact boundary between building and contents is defined in the policy wording and in the lease.
Communal Areas
Hallways, stairwells, landings, lifts, boiler rooms, bin stores, communal lighting, gardens, fences, gates, car parks and boundary walls. Some policies also cover communal contents such as carpets, seating and CCTV equipment.
Our guide on communal areas and property owners' liability covers this section in more detail.
Property Owners' Liability
Responds to claims from third parties injured in or around the building, or whose property is damaged. Typical examples include a fall on a communal stairway, a slate coming off the roof, or a contractor injured on site. Limits in this market are commonly expressed in millions rather than thousands.
Loss of Rent and Alternative Accommodation
If an insured event makes flats uninhabitable, this section can cover the cost of housing residents elsewhere and, for let flats, the rent lost while the property cannot be occupied. Whose rent is covered depends on whose name the policy is in and how the section is worded.
Employers' Liability
Where the building employs anyone directly — a caretaker, cleaner or gardener on the payroll — employers' liability cover is generally required by law. Many block policies include it or offer it as an option.
Optional Covers Blocks Commonly Consider
- Terrorism — often requested for city-centre buildings or where a lender requires it
- Engineering inspection — statutory inspection of lifts and pressure systems
- Directors' and officers' liability — for RMC or RTM company directors
- Legal expenses — service charge recovery, contract disputes, property damage disputes
- Accidental damage — extends the buildings section beyond the standard perils
What Is Not Covered by the Block Policy
- Contents belonging to individual leaseholders or their tenants
- A leaseholder's own liability to their tenants
- A leaseholder's rental income, unless the policy is specifically arranged to include it
- General wear and tear, gradual deterioration and lack of maintenance
- Damage arising from known defects that have not been remedied
Why Wordings Differ So Much
Blocks are non-standard risks. Insurers active in this market write their own wordings, and the differences show up in excesses, subsidence terms, escape-of-water conditions for empty flats, and the treatment of unoccupied units. Two schedules with the same headline sum insured can behave very differently at claim stage.
That is one reason blocks are usually placed through a broker who works in this market rather than through a general comparison route.
Making an Enquiry
Landlord Quote is a lead generation business, not a broker. We take the details of your block and, where your enquiry matches, pass them to an FCA regulated broker specialising in block of flats insurance, who will contact you directly.
Start on the block of flats insurance page, or read who insures a block of flats.
Beyond Leads Ltd T/A Landlord Quote is an FCA authorised lead generation business. We do not give advice, arrange cover or quote premiums. If your enquiry is matched, your details are shared with an FCA regulated broker who specialises in this sector.
Beyond Leads Ltd T/A Landlord Quote (FCA FRN 940006) is an FCA authorised lead generation business. We do not provide insurance advice, recommend policies, arrange cover or quote premiums. This page is general information only. If your enquiry is matched, your details are shared with an FCA authorised specialist broker who will discuss cover and pricing with you directly.