What Are The Biggest Risks in The Apartment/Flat Insurance Sector?

Britons are generally renters and subscribers now, rather than than property buyers/owners. The high asset value of houses and many flats, has put them way beyond the reach of hard working people, unless they enjoy a pre-tax income of around 80K per year and rarely go out socialising or have other credit debts.

So the rental sector offers good growth potential for insurance brands, many renters don’t bother with any Contents cover for example and many landlords provide kitchen utilities and some furniture in their rental units. As Labour look set to allow tenants to own pets, or secure long lease tenancies, landlords need to think about a changing property insurance and risk profile.

Here’s the word;

Lansdown Insurance Brokers, specialists in block of flats insurance has unveiled key insights into the most frequent insurance claims for blocks of flats in 2024. The data highlights common risks faced by landlords and property owners, as well as positive trends in claim cost reductions compared to 2023.

Darren Bee, Associate Director at Lansdown, commented: “It’s reassuring to see a decline in claim costs across key areas, which suggests that property owners are taking proactive steps in maintenance and risk prevention. However, the high number of claims highlights the continued importance of having comprehensive insurance cover tailored to the specific needs of flat owners and landlords.”

Key Findings from 2024:

1. Escape of Water – Accounting for 42% of all reported claims, water leaks and burst pipes remain the leading cause of insurance claims. However, the average cost per claim has reduced by nearly 45%.
2. Accidental Damage – Representing 30% of claims, accidental damage remains a significant factor, covering incidents such as broken windows, maintenance-related mishaps, and water ingress.
3. Storm Damage – Storm-related claims made up 15% of total cases, yet the average cost per claim fell by nearly 48%.

Full information on claims costs, types of claims and preventative measures can be found here:

https://www.lansdowninsurance.com/blog/top-3-most-common-blocks-of-flats-insurance-claims-in-2024/