Buildings Insurance – Explained

Effective buildings insurance and risk management are fundamental to protecting your property, leaseholders, and long-term asset value. A well-managed approach not only safeguards against unforeseen events but also ensures compliance with lender, lease, and statutory requirements.

We take a proactive, structured approach to insurance and risk management, giving leaseholders confidence that their building is properly protected.

What Is Buildings Insurance?

Buildings insurance covers the structure and common parts of a property against damage or loss caused by insured risks, such as:

• Fire, smoke, and explosion

• Flood, storm, and water damage

• Subsidence and ground movement

• Impact damage

• Escape of water

• Malicious damage and vandalism

For blocks of flats, buildings insurance is typically arranged by the freeholder, management company, or RTM company and recovered through the service charge in line with the lease.

Appropriate buildings insurance ensures:

• Protection of the building’s rebuild value

• Compliance with lease and mortgage lender requirements

• Financial security for leaseholders and owners

• Prompt recovery following damage or major incidents

• Reduced exposure to uninsured risks and disputes

Underinsurance or poorly structured policies can leave leaseholders exposed to significant financial risk.

Our Approach to Buildings Insurance

We ensure buildings insurance is:

• Appropriately valued using professional rebuild cost assessments

• Placed with reputable, specialist insurers experienced in residential blocks

• Reviewed annually to reflect changes in value, use, or legislation

• Clearly documented and transparently charged through the service charge

We manage the entire process on behalf of our clients, removing complexity while maintaining full transparency.

What Does Buildings Insurance Typically Include?

Policies usually cover:

• The building structure and common parts

• Permanent fixtures and fittings

• Landlord fixtures within flats (as defined by the lease)

• Alternative accommodation costs

• Property owner’s liability

Optional or additional covers may include:

• Terrorism insurance

• Engineering insurance (lifts, plant, machinery)

• Legal expenses cover

Claims Management Support

In the event of a claim, we provide hands-on support, including:

• Prompt notification to insurers

• Liaison with loss adjusters and surveyors

• Coordination of contractors and emergency works

• Clear communication with leaseholders throughout the process

• Monitoring repairs to completion

Our goal is to minimise disruption while ensuring claims are handled efficiently and fairly.

Risk Management – A Proactive Approach

Insurance is only one part of protecting a building. Effective risk management helps reduce the likelihood and severity of claims while ensuring legal compliance.

We take a proactive approach to identifying, managing, and mitigating risks across all properties we manage.

Our Risk Management Services Include

• Fire risk assessments and ongoing compliance

• Health & safety risk assessments

• Asbestos management surveys

• Contractor vetting and compliance checks

• Accident and incident reporting procedures

• Planned maintenance to reduce reactive failures

• Compliance with the Building Safety Act 

By managing risks properly, we help protect residents, reduce insurance claims, and maintain long-term insurability.

The Link Between Risk Management and Insurance

Effective risk management can:

• Reduce insurance premiums over time

• Minimise excesses and claims history issues

• Improve insurer confidence in the building

• Reduce disputes and liability exposure

Insurers increasingly expect evidence of robust risk management before offering competitive terms.

Transparency for Leaseholders

We believe leaseholders should clearly understand:

• What the building is insured for

• What risks are covered

• How premiums are calculated

• How to report incidents or claims