Problems that Insurance for Block of Flats may not cover

Block insurance provides freeholders of a block of flats with peace of mind that they’ll be in a position to cope financially in the event of an unanticipated problem that affects their building. However, it is necessary to remember that even the very best insurance policy might not cover you against all eventualities that may occur.

The insurance coverage will not cover certain problems and circumstances. Maintenance related issues are key amongst these. Even with an insurance policy, freeholders and landlords still need to ensure that their property is maintained to a reasonable standard. Here are five common problems freeholders and flats owners may face that are unlikely to be covered by insurance for blocks of flats.

Frost Damage

Frost damage is typically classified as a maintenance issue, making it unlikely to be covered by your insurance for a block of flats policy. It is the responsibility of the owner to maintain their property to a reasonable standard, and this includes ensuring that it is watertight.

Take some preventative measures before frost destruction occurs such as regularly checking the piping and brickwork. Turn the heating on low, and at constant intervals, if the belongings are likely to be empty for an extended period during winter, this will prevent the pipes from freezing.

Malicious Damage

Malicious damage is not usually covered as standard on insurance for the block of flats. Examples of malicious damage to the property include graffiti and vandalism. If you are taking into consideration about this type of damage, you should contact your insurer and request them to add this sort of cover to your policy. Remember that malicious damage claims are only paid once the police have been notified and a crime number on the issue is received.

In Occupancy

Most high insurance policies will take into account the potential for times of in occupancy. Insurers recognize that landlords are not able to fill vacant properties immediately. Systems typically allow for thirty days in occupancy before the insurer is notified. Failure to do so could lead to insurers declaring the policy null and void.

Wear & Tear

Gradual deterioration of your apartment will not be covered by your insurance policy as it is not considered to be an insurable risk.

Loss of Rent

There are two relevant policies landlords need to be aware of to protect their rental incomes. The rental cover and rental guarantee insurance.

Rent guarantee insurance protects you in the instances that your tenant defaults on their rent. However, some causes could prevent the insurer from paying out in the event of a claim. Many policies require credit checks, a high standard of references or may even need a guarantor. Failure to adequately uphold these stipulations could leave you without cover for the loss of rent.

If your apartment is declared uninhabitable through instances such as fire or storm damage, the rental cover protects the rental income of the gear for the owner. Mortgage lenders usually require owners to have this insurance, so if you’re flat has a mortgage, check your insurance policy for the cover to ensure you aren't in violation of your agreement.

Before choosing your insurance for the block of flats, it is important to know what may or may not be covered. This guides you in the choice of the right insurance cover.

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