Focus on Factoring: Buildings Insurance
We have recently received a number of queries from owners asking why they are responsible for paying the buildings insurance excess when the damage wasn’t their fault. This article explains how buildings insurance operates within blocks of flats, and why the claim must be made by the owner whose property has suffered the actual damage.
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Why the Affected Owner Must Claim on the Buildings Insurance
Insurance Responds to Damage, Not Fault - Even when damage originates in another flat, such as a leaking pipe or an overflowing bath, the buildings insurance does not assign blame or determine liability. The policy is designed to pay for repairs to the area that has sustained the physical damage. For this reason, the owner of the affected flat must submit the claim.
The Claim Must Come from the Property with the Loss - Insurers can only deal directly with the party that has experienced the insured loss. Although another flat may have caused the problem, the damage has occurred in the affected property. As such, the owner of that property is the one who must report the claim to the insurer.
The Policy Excess Applies to the Claiming Owner - The policy excess is applied per claim, not per cause. Because the damaged owner is the one making the claim for the loss in their property, they are responsible for paying the excess, even in cases where they were not at fault. This is standard across most property insurance policies.
Recovery From a Neighbour Is Separate - If the affected owner believes another resident is responsible, they may choose to pursue that neighbour privately to recover the excess. However, this sits entirely outside the buildings insurance process and typically requires proof of negligence, for example, evidence that the neighbour knew of a leak but failed to take action.
Understanding why the affected owner must claim on the building’s insurance helps ensure that the process runs smoothly and fairly for everyone in the building. Although it can feel frustrating to pay an excess for damage that wasn’t your fault, insurance policies are structured to respond to where the damage has occurred, not how it was caused. The insurer’s role is to repair the affected property, while any questions of fault or reimbursement must be handled separately between owners. By following this approach, claims are resolved more efficiently, repairs can begin sooner, and any further liability issues can be addressed through the appropriate channels.