Haxon has arranged buildings insurance, liability cover and directors protection for residential
blocks of all sizes across Sussex and beyond. From small converted Victorian terraces split into
three or four flats, to large purpose-built blocks with communal amenities and complex ownership
structures, blocks of flats insurance is not something we offer in passing. It is the area in which
we have the deepest expertise and the strongest market relationships.
If you are a freeholder, a Right to Manage company director, a managing agent or a property
investor with residential blocks in your portfolio, we would welcome the opportunity to review
your current cover and show you what a specialist broker can do.
WHY SPECIALIST COVER MATTERS
A block of flats is not a standard property risk.
Buildings insurance for a block of flats involves a level of complexity that standard property
policies are not designed to handle. Multiple leaseholder interests, shared freehold structures,
communal areas and facilities, Right to Manage arrangements, directors’ obligations and the
legal requirements that flow from the Building Safety Act, all of these require a policy that has
been structured with them in mind from the outset.
Haxon works exclusively with insurers and specialist schemes that understand residential block
risk. That means the policy wording is appropriate, the reinstatement value has been considered
carefully, communal liability is properly included, and the interests of all parties, freeholder,
managing agent, RTM company and leaseholders are reflected in what has been arranged.
We also work with clients to address underinsurance, which is widespread across the residential
block sector. With building costs having risen substantially in recent years, many blocks are
insured at reinstatement values that were set several years ago and have not been reviewed.
The consequences of underinsurance at the point of a major claim are significant and Haxon
advises all block clients to ensure their reinstatement figures are current.
Who arranges the insurance for a block of flats?
In most residential blocks the freeholder or the Right to Manage company is responsible for
arranging buildings insurance for the whole building. Where a managing agent is appointed, they
may arrange insurance on behalf of the freeholder, but the legal responsibility for ensuring
adequate cover is in place typically rests with the freeholder or the management company.
Haxon works directly with all of these parties and is experienced in navigating the responsibilities
that come with each arrangement.
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WHAT IS COVERED
Everything a blocks of flats insurance policy should include.
| BUILDINGS INSURANCE | Full reinstatement cover for the entire structure of the block — walls, roof, floors, communal areas, external fabric and fixtures — at a reinstatement value that reflects current building costs. |
|---|---|
| PROPERTY OWNERS LIABILITY | Liability protection for the freeholder or management company in respect of injury or property damage arising from the communal fabric, grounds and shared areas of the block. |
| DIRECTORS & OFFICERS | Protection for the directors of RTM companies and residents’ management companies against claims arising from their decisions and actions in managing the block. Increasingly essential as the responsibilities on block directors have grown under recent legislation. |
| EMPLOYERS LIABILITY | Required where the freeholder or management company employs staff directly — including caretakers, concierge staff and maintenance personnel. |
| ENGINEERING, LIFTS & PLANT | Statutory inspection and insurance for lifts, passenger hoists, pressure vessels and other plant equipment within the block. Required under health and safety legislation and frequently overlooked in standard block policies. |
| LOSS OF RENT | Cover for rental income receivable by the freeholder in the event that part of the block is rendered uninhabitable following a claim. |
| TERRORISM COVER | Available where required — particularly relevant for blocks in central urban locations or those with a high sum insured. |
| TRACE AND ACCESS | Cover for the costs of locating the source of a leak or escape of water within the communal areas — one of the most common and costly claims in the residential block sector. |
| LEGAL EXPENSES | Cover for legal costs arising from disputes with leaseholders, contractors or service providers. |
TYPE OF BLOCKS WE INSURE
CONVERTED HOUSES
From a converted terrace to a large residential development.
SMALL PURPOSE-BUILT
Purpose-built residential blocks of up to fifteen or twenty units, frequently held by a single
freeholder or a small freehold company with individual long leaseholders.
LARGE PURPOSE-BUILT
Larger residential developments with significant communal infrastructure lifts, car parks, concierge, communal heating, landscaping, requiring a more comprehensive policy structure
with higher liability limits and engineering inspection.
MIXED-USE BLOCKS
Buildings combining residential flats with ground-floor or basement commercial use, retail, office, restaurant or other commercial tenants requiring a policy that reflects the mixed occupancy correctly.
LEASEHOLD & FREEHOLD
Whether the freehold is held by an individual, a company, a residents’ management company or a Right to Manage company, Haxon has experience across all ownership structures and ensures the policy is arranged in the correct name with appropriate rights for all interested parties.
CONSIDERING SWITCHING?
If your current block insurance no longer feels right, we would welcome a review.
If you are currently unhappy with your blocks of flats insurance, whether due to premium increases, poor claims handling or a policy that no longer feels right for your building, Haxon offers a straightforward review service. We will assess your existing cover, identify any gaps or concerns, and provide a whole-market comparison. There is no obligation to proceed.
Speak to a specialist in blocks of flats insurance
Whether you are arranging insurance for a new block acquisition, reviewing cover on an existing building or switching from a broker who no longer meets your needs, Haxon would welcome the conversation. One call to someone who already understands your risk.
