Multi‑Occupancy Building Insurance: What do property owners need to know?
In December 2023, the government introduced the Multi‑Occupancy Building Insurance (MOBI) regulations, bringing meaningful change to how building insurance for residential blocks is handled.
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The intention was to ensure residential leaseholders are treated as customers of the insurer or broker, rather than just the property owner. This shift means insurers and brokers must now offer clear transparency around policy pricing, commission and value for money, with the aim of securing fairer outcomes for the people ultimately paying the premium.
Who is affected?
If you are a property owner and your tenant or leaseholder pays for the building insurance, whether you recharge the cost or they pay directly, then these regulations apply to you. Under MOBI, leaseholders are no longer considered passive contributors to the premium; they are recognised as customers in their own right. As such, when your insurer or broker provides policy information, it is your responsibility to share this with your tenants or leaseholders so they have full visibility of what they are paying for.
Why were these regulations introduced?
The new rules were brought in following years of rising building insurance premiums, particularly for properties affected by cladding and fire‑safety concerns. These increases highlighted the need for greater transparency around how policies are priced and how commission structures work. The regulations were designed to ensure that policies genuinely offer fair value, that commission levels are openly disclosed and that the overall process delivers better outcomes for leaseholders or tenants who fund the cover.
What information must be passed on, and why?
Insurers and brokers must now provide clear, accessible details about the insurance policy arranged for the building. This includes:
- what the policy covers
- how much it costs
- how remuneration and commission are structured
This information must be shared with leaseholders or tenants, as they are now considered customers of the insurer.
Providing this transparency means leaseholders understand exactly what they’re paying for, what protections are in place, and in some cases, what steps to take if they need to make a claim. It also requires insurers to recognise and consider leaseholders’ needs when assessing fair value and delivering suitable outcomes.
If you’d like help understanding your obligations under the MOBI regulations or want to review your current policy, speak to our team:
T: 01908 920570
E: enquiries@christieinsurance.com