Flat Block Insurance on the Rise

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Many flat owners are facing a financial blow as flat block insurance premiums are seeing a significant rise. This increase is largely driven by a surge in the number of claims being made, putting a strain on insurers and leading them to reassess the risk profile of these buildings.

The severity of the increase will depend on a number of factors, including the type of insurance, the size of the claim, and whether you were at fault. But in general, you can expect your premiums to go up by 20-50% after filing a claim.

Why the Rise in Claims?

Several factors are contributing to the higher claims figures:

  • Increased Building Costs:

The cost of repairs and rebuilding after damage has skyrocketed. Supply chain issues, rising material prices, and labour shortages have all made it more expensive to fix problems.

  • More Frequent Claims:

Incidents like water leaks and fire damage are unfortunately common in flat blocks. If these claims become frequent within a particular building, insurers view it as a higher risk.

  • Larger Claim Values:

Even minor leaks can cause significant damage to multiple flats, leading to larger payouts for insurers.

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The Impact on Flat Owners

The consequence of these rising insurance costs is felt directly by flat owners. Premiums are increasing, and some insurers may even be hesitant to take on the risk of insuring certain blocks altogether. This can lead to:

  • Higher Monthly Costs:

Flat owners will see a rise in their service charges to cover the increased insurance premium for the building.

  • Limited Choice of Insurers:

With fewer insurers willing to cover high-risk blocks, flat owners may have fewer options when it comes to renewing their policies.

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What Can Be Done?

Flat owners can take steps to mitigate the impact of rising insurance costs, even though some factors are beyond their control. As follows;

  • Proactive Maintenance:

Regular maintenance of the building’s plumbing, electrics, and roof can help prevent problems before they escalate into costly claims.

  • Claims Management:

By collaborating with building management, we can significantly improve the block’s claims record by handling them efficiently and only submitting them when absolutely necessary.

By working together, flat owners and building managers can take steps to reduce the risk of claims and keep insurance costs under control.

Want to discuss your policy with us? Call us today on 01273 827090 or click here.

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