Freeholders and blocks of flats insurance: an introduction

When you’re responsible for managing blocks of flats, whether that’s as a freeholder, part of a residents’ management company (RMC), or a Right to Manage (RTM) company, one of your most important priorities should be to find the right insurance. Without adequate protection in place, you may find that you don’t have the level of cover that you thought you did should you come to make a claim.

That’s where freeholders and blocks of flats insurance comes in. This cover is specifically designed to account for the unique risks that you face when managing these types of buildings, helping you to both mitigate risks and meet legal obligations. This will help to protect both the properties and the residents living within them.

In this article, we answer some of your most pressing questions surrounding blocks of flats insurance, what it typically includes, and how to find the right policy for your building.

What is freeholders and blocks of flats insurance?

Freeholders and blocks of flats insurance is a bespoke policy designed to protect buildings that hold more than one places of residence. It’s usually arranged by the freeholder, managing agent, or RMC on behalf of all leaseholders.
This type of insurance covers the structure of the building and can include a range of additional protections depending on what you need.

It’s important to consider the rebuild cost of your property when taking out this type of insurance. This will need to consider aspects such as removal of debris, professional fees and labour/materials cost.

Do freeholders need insurance?

When you’re responsible for blocks of flats, you need to make sure the building is properly insured. Even if you don’t live there, you can still be held liable for damage, accidents, or legal claims related to the property.
Having the right insurance in place protects you financially and helps you meet your legal obligations.

What does freeholders and blocks of flats insurance cover?

A comprehensive policy can include:

• Buildings insurance – This covers the cost of repairing or rebuilding the structure after damage from fire, flood, storm, or other insured events
• Property owners’ liability – Protects you if someone is injured or their property is damaged due to the building you manage
• Employers’ liability – This cover is required if you employ staff such as cleaners or maintenance workers
• Directors’ and officers’ (D&O) liability – Covers personal liability for decisions made by RMC or RTM directors
• Communal contents – Covers items like carpets, furniture, or equipment in shared areas
• Loss of rent or alternative accommodation – For if the flats become uninhabitable due to an insured event
• Legal expenses – For disputes related to the property

What elements can be included in a freeholders and blocks of flats policy?

Because no two properties are the same, this cover can be tweaked to meet the specific risks and responsibilities associated with your building. Considering the nature of your property and how it’s managed, you can pick and mix elements of the cover to enhance your protection.

Cover options can include:

• Buildings only cover – For basic structural protection only
• All-risks cover – For more comprehensive protection
• Terrorism cover – Often optional but recommended in certain higher-risk areas
• Engineering inspection – For lifts or other mechanical equipment

At Greenfield Insurance Brokers, we can help you decide which elements are essential for your property.

What affects the cost of freeholders and blocks of flats insurance?

There’s no way to determine exactly how much your insurance will cost without first considering the unique variables of your property, including the level of protection required. Insurers tend to assess a range of factors when calculating your premium, understanding these can help you make informed decisions about your cover.

These variables often include:

• Type of property – Older or listed buildings may cost more to insure
• Location – Urban areas or flood zones may carry higher premiums
• Number of flats – More units typically mean higher rebuild costs
• Claims history – Previous claims can affect your premium
• Level of cover – More comprehensive policies will naturally cost more
• Services provided – Such as maintenance, cleaning, or security

To ensure you’ve struck the right balance between affordability and cover, it’s important to work with a broker who understands both your business and the wider market.

Why choose a specialist broker like Greenfield Insurance Brokers?

At Greenfield Insurance Brokers, we specialise in insurance for freeholders, RMCs, and managing agents. We understand the challenges of managing multi-unit properties and are here to help you find the right cover with confidence.

Our team will work with you to understand your legal and financial responsibilities, compare quotes from trusted insurers, and tailor your policy to suit your property’s specific needs. We’re also here to provide expert support whenever you need to make a claim, ensuring you’re protected every step of the way.

Want to know more? Find our product page here.