Apartment Owners Insurance

If you own an apartment in the UK, your insurance needs are different from those of a homeowner with a standalone house. The structure of the building is normally insured under a single block policy, but as an apartment owner you still have personal cover that is your responsibility. Apartment owners insurance brings the right elements together so you are protected as both a property owner and an occupier or landlord.

What Apartment Owners Insurance Means

The phrase “apartment owners insurance” is used to describe the combination of cover an individual owner of a flat or apartment needs in addition to, or alongside, the block buildings policy. Depending on your circumstances it can include:

• Contents insurance for everything inside your apartment.
• Owner’s liability cover.
• Buildings insurance for your share, where this is not handled centrally.
• Landlord cover, if you let the apartment out.
• Legal expenses cover for disputes with neighbours, the freeholder, or contractors.

Block Policy Vs Individual Owner’s Policy

In a purpose-built block or converted house, the freeholder or management company typically arranges a single buildings insurance policy covering the entire structure, communal areas, and shared services. Each apartment owner contributes to the cost through service charges. As an apartment owner you should always ask for a copy of the policy schedule so you can see what is covered, what the excesses are, and who is named as an insured party.

Your individual policy then sits alongside the block cover and fills the gaps the block policy cannot reach, such as your possessions, your personal liability, and your fixtures if they are not already included in the block sum insured.

Why Apartment Owners Need More Than Just Contents Cover

Many apartment owners assume a simple contents policy is enough. In practice, owning rather than renting introduces a few risks that a standard tenant’s contents policy will not address:

• Improvements and betterments — if you have upgraded the kitchen, bathroom, or flooring, those improvements may not be covered by the block policy and need to be insured under your own cover.
• Owner’s liability — you can be held liable for an incident that originates inside your apartment, such as a leak that damages the flat below.
• Underinsurance gap on the block policy — if the freeholder has set the rebuild value too low, owners can find themselves contributing to a shortfall. Some specialist policies include a top-up element to address this.

If You Let Your Apartment Out

Apartment owners who let their property to tenants need landlord-specific cover. A standard owner-occupier contents policy will normally exclude tenant-related claims. Look for a landlord policy that includes:

• Landlord contents cover for any furniture you provide.
• Property owner’s liability of at least £5 million.
• Loss of rent following an insured event.
• Cover for malicious damage by tenants, where available.
• Optional rent guarantee and legal expenses.

You can read more on our dedicated landlord insurance for flats page.

Share Of Freehold Apartments

If you own a share of the freehold, you and the other apartment owners are collectively responsible for arranging the block buildings policy. This is a more involved arrangement and requires agreement on the sum insured, the level of cover, and the choice of insurer. A specialist broker can help avoid the most common pitfalls, particularly around reinstatement values and excesses.

Our share of freehold buildings insurance guide explains the structure in more detail.

What To Check Before Buying A Policy

Before committing to a quote, work through this checklist:

• Is the apartment owner-occupied, let to tenants, or used as a second home?
• What is the rebuild cost of the building and what is your contribution if there is a shortfall?
• Have you made any improvements that need to be specifically insured?
• What excess applies to escape of water, the most common cause of flat claims?
• Does the policy include alternative accommodation cover if your apartment becomes unlivable?
• Is legal expenses cover included or available as an add-on?

Get A FAST Quote

Apartment ownership comes with a unique combination of risks. Getting the right policy in place protects your investment, your belongings, and your financial position if something goes wrong. Get a FAST quote from our specialist panel and have the right apartment owners insurance arranged in minutes.