Block of Flats Insurance After Claims & Escape of Water
A block of flats with a claims history, especially repeated escape of water, often faces a much higher excess, a premium loading or a refusal to renew. Escape of water is the most frequent claim in blocks: many flats share pipework, plumbing ages, and a leak in one flat damages the ones below. After a run of these claims, insurers typically raise the escape of water excess sharply, add conditions such as plumbing surveys, or decline to renew. The way back is to understand why the leaks are happening, fix the cause, and present that evidence to markets that will look past the claims figure. Freeholders, residents' management companies and managing agents should never let cover lapse while they look. Miller & Partner places blocks of flats with claims history and past refusals through Lloyd's syndicates and specialist MGAs.
Key facts at a glance
- Escape of water is the most common block claim, and the one most likely to change your terms.
- Insurers judge frequency more than size. Several small leaks worry them more than one large one.
- The usual response is a higher escape of water excess, sometimes several thousand pounds per claim.
- Who pays the excess depends on the leases, not on the insurer.
- Evidence of the cause being fixed is the strongest lever at renewal.
- Never let block cover lapse. Lenders, leaseholders and the leases all depend on it.
Why do blocks of flats have so many escape of water claims?
- Shared and ageing pipework. Copper, lead or early plastic systems near the end of their life fail more often.
- Leaseholders' appliances and fittings. Washing machine hoses, dishwashers and shower seals in individual flats cause many claims.
- Poor workmanship in refurbishments. Push-fit connections and DIY bathroom fits are frequent culprits.
- Unoccupied flats. A leak in an empty flat can run for days. See unoccupied property insurance.
- Short lets and high turnover. Guests unfamiliar with a flat cause more leaks. See short lets in leasehold flats.
How do claims affect block insurance renewal?
| Claims pattern | Typical renewal response | What helps most |
|---|---|---|
| One escape of water claim | Little change, or a modest loading | Evidence the cause was repaired |
| Repeated escape of water | Much higher escape of water excess, possible conditions | Plumbing survey, remedial works, leak detection |
| Escape of water plus trace and access costs | Sub-limits or exclusions on trace and access | Accessible risers, pipework mapping |
| Fire claim | Loading, closer review of fire safety | Updated fire risk assessment, completed actions |
| Malicious damage or vandalism | Loading, security conditions | Door entry, CCTV, lighting |
| Subsidence claim | Subsidence excess increased or cover restricted | Engineer's report, monitoring, completed repairs |
See our guides to subsidence history and insurance after a fire claim for those claim types.
Who pays the excess on a block of flats claim?
When escape of water excesses rise sharply, how they are recovered becomes a real issue for leaseholders. Clear, consistent handling avoids disputes. Some managing agents pass the excess to the flat where the leak started where the lease permits, which also encourages leaseholders to maintain their own plumbing.
How can a block reduce escape of water claims?
- Commission a plumbing survey of risers, tanks and shared pipework, and act on the findings.
- Fit leak detection and automatic shut-off valves, at least in flats with a history of leaks.
- Map stopcocks and isolation valves so leaks can be stopped quickly, with access arrangements agreed.
- Set rules for leaseholders on appliance hoses, bathroom refits and using qualified tradespeople.
- Inspect empty flats regularly, and consider draining down long-term vacant units.
- Keep a claims log showing the cause and fix for each claim. It is the evidence underwriters need.
What if the insurer won't renew the block?
Start early. Problem blocks take longer to place, and underwriters want the claims log, the survey and evidence of works. Our guides to insurance cancelled by your insurer and insurance after a refusal cover the process.
This is where the Insurability Framework™ does its work: we turn the claims log, the survey and the works into one evidence-backed case, so underwriters judge the block on what has changed rather than on a claims total.
How do I get better terms for a block after claims?
- Build the claims log. Five years of claims with dates, causes, flats affected and amounts paid.
- Find the pattern. Same riser, same appliance type, same flat? The pattern tells you what to fix.
- Fix it and evidence it. Survey reports, invoices and photos of the works.
- Agree how excesses are recovered. In line with the leases, communicated to leaseholders.
- Go to market early. A specialist broker can present the full picture to the right underwriters before renewal.
Frequently asked questions
Usually because of repeated escape of water claims. Insurers raise the excess to share the cost of frequent leaks with the building. Evidence that the causes have been fixed is the best way to get it reduced.
Yes. Specialist markets write blocks with claims history when the claims, their causes and the remedial work are disclosed in full. Terms may include a higher excess or conditions at first.
It depends on the leases. Some allow the freeholder to recover the excess from the leaseholder whose flat caused the damage; otherwise it is usually paid through the service charge. Check the lease wording.
Many policies include trace and access cover for finding the source of a leak, sometimes with a sub-limit. After repeated claims, insurers may limit or exclude it, so check the wording at renewal.
They can help, especially alongside a plumbing survey and completed repairs. Some insurers make leak detection a condition for blocks with escape of water history.
Arrange replacement cover before the renewal date, and disclose the claims history and the non-renewal. Start early, because problem blocks take longer to place.
Yes, for the period the insurer asks about, typically three to five years. Missing claims give the insurer grounds to reduce a later claim or void the policy.
As long as insurers ask about them, usually three to five years. Terms often ease after two or three clean years, especially if the causes were fixed.
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