Building Insurance For Flats

[PinkRabbitEars]

We've just had our annual renewal quote and oh my god... the premium has more than doubled this year. Please does anyone know which insurance companies insure buildings with flats? We have shared freehold between 3 flats. Please help! 😫

Have you tried calling an insurance broker?

Also, wtf? Have there been any claims? Have you been with the same insurer for years and it's just doubled all of a sudden?

I've been reading about car insurance going up 30-40% but this feels a lot more shocking.

No claims...

Not yet, but will need to start phoning tomorrow because simply can't afford it!

How long have you been with this insurance firm?

I'm not actually sure, I know we changed a few years back but I don't remember and at the time it wasn't myself getting the quotes etc (possibly about 5 years to give you a rough idea), but think I'll have to find the time somehow and look into it tomorrow.

At the moment it's by far the most expensive bill out of absolutely everything else I currently pay for...

At the moment it's by far the most expensive bill out of absolutely everything else I currently pay for...

Good lord.

The reason I asked is because I believe it's quite a common strategy for insurers to put premiums up massively in the second or third year because they know X percent of people simply won't bother shopping around; if the customer calls and says 'Y company are offering me the same cover for 60% less' they simply match the premium.

But it sounds like you're past that sort of timeline.

I'd be interested to hear how you get along. But, yeah, call a broker.

Are you paying for all three flats building insurance?
Insurers are no longer allowed to charge more for renewals. Try A-plan brokers

Huh. TIL.

(they've found a loophole, right? they always do)

In January 2022, the FCA implemented new rules to ban car and home insurers from offering more competitive premiums to new business customers compared to renewing policyholders - this practice is known as price walking.

https://www.insurancetimes.co.uk/news/insureds-facing-higher-renewal-prices-despite-fcas-price-walking-ban-which/1442191.article#:~:text=In%20January%202022%2C%20the%20FCA,is%20known%20as%20price%20walking.

Well I guess some could but massive fines if they are caught

Block policies tend to go through brokers. Try someone like PIB or A J Gallagher?

We went through a broker but our building insurance still increased massively this year - it's because construction costs have also increased so much. We shopped around but we couldn't get the cost down at all (block of 110 flats - I'm one of the Board Directors).

The flats insurance market has been hardening for the last five or so years; first it was the facades issue post-Grenfell and now it's the uplift on rebuild costs. We don't really see premiums reducing nowadays, and budget for a 20% uplift on a building with a 'good' claims history.

it's because construction costs have also increased so much.

PP is not wrong. I've just remembered the buildings insurance rebuild estimate for a stone cottage I almost bought this year was 240% more than the value - accepted by the lender - of the house.

Edit to say 240% instead of 136% because apparently I can't maths, even with online calculators

Direct Line have just received a fine (and Churchill too - I think they're part of the same group). Hasn't stopped them bumping up our house and car insurance though. DH got a cheaper quote online for his car insurance from the same insurer so the fine doesn't seem to have stopped them!

@HundredMilesAnHour when you say shopped around do you mean tried a different broker? Are they all whole of market?

Right, I've just got some quotes to insure just the single flat and it's about 1/4 of the price if we insure the building on a joint policy for all of us.

It's only 3 flats and I know the other 2 owners will follow suit and the building will be covered.

Any thoughts?

That should say 1/4 of the price THAN...

@PinkRabbitEars I'm pretty sure it's freeholders responsibility to insure the building and you could also get your own policy just in case. Check your lease and also your mortgage to see if you need to do this.

We all share the freehold

@PinkRabbitEars please don't do that! How will you allocate the common areas (roof, stairwells etc) between the respective policies. What will happen if there is a claim affecting more than one flat and there is a difference in the terms and conditions of the policies? How will you makes sure that everyone keeps their insurance up to date? How are you calculating the correct sum insured ? Who would be covering the legal liabilities if the postman slips on the stairs or a tile falls off onto a passer by?

I doubt you will get an insurer to insure a single flat if you make a full disclosure , certainly in my 30 odd years in that Industry single flats were always a "no".

Please try an insurance broker.

Buildings insurance prices have shot up because of the cost of labour and materials over the past couple of years. But you may be able to get a better deal.

It also depends on the building, our house we're selling has a rebuild insurance value almost four times the home report value because it's a unique and complicated Georgian building in a fairly cheap area - not listed. Your stone cottage sounds similar.

@Defiantlynot41 all very valid points. Will phone some brokers tomorrow. In any case I can't get my head round building insurance being the single biggest outgoing of all... 😫

Building insurance premium is the biggest outgoing for my building(s) also (just checked our most recent accounts).

On a standard small block (non massively high end) service charge budget, buildings insurance is almost always the biggest cost - it wouldn't surprise me at all that this is the case.

Try

www.lansdowninsurance.com/

Our went up massively a few years ago & they got it down cheaper than the previous 2 years

Good luck!

@LBOCS2 well it never used to be. Until now!