Guide · Running your block

Buildings insurance for a self-managed block of flats

Who insures a block of flats, the cover you need, rebuild valuations, commissions, leaseholders' rights to insurance details and directors' insurance.

Last reviewed 22 October 2026 by Phil, founder3 min readPlain text (Markdown)

The short answer

Who insures the building is set by the leases: usually the landlord, a residents' management company, or, after the right to manage, the RTM company. The policy should cover the full cost of rebuilding the building, not its market value, and leaseholders pay the premium through the service charge. Leaseholders can ask for a summary of the cover, which must be supplied within 21 days, and the company should also insure its directors and its liability to the public.

Key facts

The leases say who must insure, for what risks, and how the premium is shared.
Insure for the full rebuilding cost; get a professional rebuild valuation every few years.
After the right to manage, insuring passes to the RTM company if it was the landlord's job; the landlord may still insure at its own expense.
Leaseholders can ask for a summary of the insurance, which must be supplied within 21 days (LTA 1985 Schedule).
Tell leaseholders about any commission or other payment the company or anyone connected receives.

Who insures

The leases decide. Look for the landlord's or management company's covenant to insure, and the leaseholders' covenant to pay towards it (sometimes called insurance rent). The lease may say:

what risks must be covered (fire, flood, subsidence, terrorism and so on);
whether the cover must be for the full reinstatement (rebuilding) value;
whether a particular insurer or the landlord's approval is required;
whose interests must be noted on the policy (often the landlord and leaseholders' mortgage lenders).

After the right to manage: insuring is a management function, so it passes to the RTM company if it was the landlord's job. The landlord may also insure at its own expense (s.97), but leaseholders only pay for the company's policy. Arrange cover to start on the acquisition date. Don't leave a gap.

What cover the block needs

Cover	Why
Buildings insurance	Rebuilding and repairing the structure after insured damage. Insure for the rebuilding cost, which is often very different from market value.
Property owner's liability (public liability)	Claims from people injured in the common parts. Often included in the buildings policy.
Directors' and officers' (D&O) insurance	Protects volunteer directors against claims about their decisions.
Employers' liability	A legal requirement only if the company employs people (for example, a cleaner on the payroll).
Engineering inspection	Required inspections of lifts or other equipment, where fitted.

Get a professional rebuild valuation every few years, and update the sum insured in between. Under-insurance can reduce every claim.

Leaseholders' rights to information

Any leaseholder (or their recognised tenants' association) can ask in writing for a summary of the insurance: the sum insured, the insurer and the risks covered. It must be supplied within 21 days. They can also ask to inspect the policy (LTA 1985, Schedule). Keep the policy, schedule and latest valuation where you can share them easily.

Commissions and conflicts

Brokers are often paid commission by the insurer, and some managers receive commission too. Be open: tell leaseholders what the premium is, who arranged it and any commission or payment received by the company or anyone connected with it. The RICS Code expects this. The Leasehold and Freehold Reform Act 2024 will add new rules on insurance commissions and information for leaseholders, but they aren't in force yet.

Claims

Report a claim promptly and keep evidence (photos, invoices).
Check the lease on who pays the excess. Some leases let you recharge it to the flat where the damage started.
Record the claim and its outcome, and tell affected leaseholders what's happening.

The Maple Court example

Maple Court's directors ask two brokers for quotes for the June renewal, each for the rebuilding cost from last year's valuation, with the freeholder's and lenders' interests noted. They choose the cheaper policy, which includes property owner's liability. They add D&O cover for the company and send all leaseholders a one-page summary with the premium, the insurer, the excess and the broker's commission.

This is general information, not legal advice. Every building and lease is different. For free initial advice, contact LEASE (The Leasehold Advisory Service): https://www.lease-advice.org/

Questions people ask

Who is responsible for buildings insurance in a block of flats?

Whoever the leases say. Usually that's the freeholder, or a residents' management company named in the leases, and the cost is shared through the service charge. After the right to manage, the RTM company takes over insuring if the lease made it the landlord's job.

Does our RTM company have to use the freeholder's insurance?

Not after the acquisition date, if insuring passed to the RTM company under the leases. Check whether the lease names an insurer or requires the landlord's approval of one, and make sure the landlord's interest is noted on the policy. The landlord may keep its own policy, but at its own expense.

Do flats need their own buildings insurance?

Usually not: the block's policy covers the structure, and leaseholders insure their own contents. Check the lease, especially in converted houses and share-of-freehold buildings, where arrangements vary.