Terrorism insurance provides financial protection against damage or losses caused by acts of terrorism. In the UK, standard buildings insurance policies typically exclude terrorism-related incidents, meaning property owners must purchase this cover separately or as an add-on.

This type of insurance ensures that if a terrorist attack causes damage to the building, the cost of repairs or rebuilding is covered. It also often includes protection for loss of rental income and alternative accommodation costs for leaseholders or tenants if the property becomes uninhabitable.

Owners or leaseholders of block of flats should consider purchasing terrorism cover because, under the Reinsurance (Acts of Terrorism) Act 1993, mortgage lenders may require it as a condition of lending. Without this cover, leaseholders and freeholders could face significant financial losses if their property is affected.

Additionally, while the likelihood of a terrorism-related incident may seem low, major UK cities and key locations remain at risk. Even indirect damage, such as from a nearby explosion, can have serious financial and legal implications.

By securing terrorism cover, residential management companies and leaseholders ensure they comply with lender requirements and provide essential protection for property owners, leaseholders, and tenants, safeguarding their financial security in the event of an unforeseen attack.

Directors and Officers (D&O) insurance provides financial protection for individuals who hold decision-making positions within a company, including directors, officers, and committee members. It covers legal costs, compensation claims, and settlements arising from alleged wrongful acts, mismanagement, or breaches of duty.

For residential management companies (RMCs) overseeing blocks of flats, D&O insurance is essential. These companies, often run by leaseholders or appointed directors, are responsible for managing finances, maintenance, health and safety compliance, and service contracts. If a resident, contractor, or regulatory body believes a director has made a poor decision resulting in financial loss or legal breaches, they may take legal action. Without insurance, directors would be personally liable for defence costs and potential settlements, which could be financially devastating.

Common claims against RMC directors include mismanagement of service charge funds, failure to comply with legal regulations, breaches of duty, and disputes over maintenance decisions. Even unfounded allegations require costly legal defence.

D&O insurance ensures that directors and officers have financial protection, allowing them to carry out their roles with confidence. It also reassures leaseholders and stakeholders that responsible governance is in place. Given the complexity of property management and the increasing regulatory scrutiny in the UK, RMCs should view D&O insurance as a crucial safeguard against personal liability and financial risk.

Engineering and engineering inspection insurance is a specialist policy designed to protect buildings that contain mechanical and electrical equipment, such as lifts, boilers, and pressurised systems. For blocks of flats, this cover is essential to ensure the safety, compliance, and functionality of vital equipment, helping property owners, landlords, and management companies avoid costly repairs and legal issues.

This insurance includes two key elements: regular statutory inspections and breakdown cover. UK law mandates that certain equipment, like lifts and pressure systems, must undergo periodic inspections under LOLER (Lifting Operations and Lifting Equipment Regulations 1998) and PSSR (Pressure Systems Safety Regulations 2000). These inspections, carried out by qualified engineers, help detect potential faults before they become major safety hazards.

Breakdown cover ensures that if essential equipment fails, the cost of repairs or replacement is covered, reducing disruption for residents. Without this insurance, freeholders and management companies risk expensive emergency repairs and potential liability claims if equipment malfunctions.

Blocks of flats with lifts and pressurised equipment should consider engineering insurance to remain legally compliant, avoid unexpected costs, and ensure residents’ safety and convenience. Investing in this cover protects both the property and its occupants while ensuring key building systems remain operational.

For specialist engineering insurance for blocks of flats, contact Champion Insurance Group today to ensure full compliance and financial protection.