The team from Block in a Box explain why the the cheapest isn’t always the best when it comes to buying insurance for your block of flats.

When it comes to insurance, it’s no secret that premiums have been creeping up in price. This comes down to multiple factors including the current hard market, higher costs for reinsurance and raw materials and soaring indexation. All of the above can be attributed to the pandemic, the Ukraine war, Brexit etc. It’s a tough time for most businesses, and insurers are not immune.

Insurers are certainly not benefitting from the price hikes- a tempting assumption made by some. Insurers are simply keeping their businesses afloat and rolling with the volatile times we’re in.

Many customers are receiving renewal emails at higher price points that they expected. This leads to individuals scouring the internet for the best deal possible- understandable but risky. Read on to find out why.

The Danger of Viewing Insurance as a Commodity

With renewals coming through at higher price points, many are hunting down cheaper alternatives. This is completely understandable, especially give the cost-of-living crisis, but it’s important to protect yourself and your assets appropriately and to avoid falling foul of a low premium with sub-par cover, or an inappropriate product for your circumstances.

When searching the market for great deals, it can be easy to start thinking of your insurance as another commodity- such as gas, electricity or petrol. When shopping around for these supplies, you get the same product for your money. Insurance doesn’t work in the same way.

Insurance products have to suit you, your property and your budget- a tough puzzle to crack on your own what with the intricacies of leases, different building types and the risks of estimated Declared Values.

If you’re shopping around and find what looks like a comparable product for a cheaper premium, tread very carefully. With insurance you really do get what you pay for. If the premium is significantly lower than your renewal quote, the chances are the cover will be lacking in one way or another. This could leave you high and dry in the event of a claim and risk your (and your fellow resident’s) investment.

A good broker can help you find the best deal that genuinely works for your property and your circumstances, as well as your budget.

Consider the Extras

If you’ve found the holy grail of truly comparable cover at a lower price point, check the additional extras and small print carefully.

Your current policy may come with a 24/7 helpline for making claims for example- does the potential new provider have this? Have you checked their online reviews to get a glimpse of their customer service offering?

In terms of deciding whether to go through a broker and swallow that additional cost, remember that they will:

  • Assess your property and identify what your policy needs to include
  • Search the market for the most suitable cover
  • Compare prices from a range of insurers
  • Negotiate the best policy terms with insurers on your behalf
  • Arrange, renew or change your policy with your insurers
  • Collect premiums and process accounts
  • Help you through the claims process

If you’re acting alone, there are many points in this process where you may struggle. Using a broker gives you the peace of mind that you really will have the best deal for your property’s needs and with the added support of claims and renewal processes being taken care of. It could even avoid you being over insured and spending more than you need to.

The Risks of Underinsurance

In 2021, insurers paid out £8million per day in claims (Morgan Clark) and it’s estimated that 80% of UK properties are underinsured (, so this feeling of ‘it won’t happen to me’ can be heavily disputed!

Of the 80% that are underinsured, the average building is insured for just 68% of the real value. In a worst-case scenario, that leaves you with 32% of the rebuild cost to find.

Claims arise constantly- from minor wind damage to full rebuilds. Don’t let it be you that’s unknowingly underinsured your property, adding huge amounts of financial pressure and stress to an already very challenging situation.


Remember that with insurance you get what you pay for. Hidden value can be found in utilising brokers and finding providers that provide amazing customer service, 24/7 support and that genuinely care for you and your property. Protect what is probably your biggest financial asset appropriately- for peace of mind and for the protection of your finances.

Block in a Box not only provides information on how to protect your block of flats against emergencies over winter. We can also help with utilities, repairs, insurance, health and safety, and just about any other issue a flat owner or manager might face. To learn more about leasehold management companies or freehold management companies, contact our friendly and professional team today on 0333 0154 145.