RTM Company Insurance Responsibilities: A Checklist for New Directors
Newly appointed RTM directors inherit the buildings insurance along with everything else. A practical checklist of what to gather and when.
Right to Manage · 2 September 2026 · 7 min read
Becoming a director of a Right to Manage company is usually a volunteer role taken on by a leaseholder with a day job. The insurance side is one of the first things that needs attention, because the handover date is fixed and cover has to be in place from it.
Before the Acquisition Date
Confirm the date. The acquisition date is set by the statutory notice process. Insurance needs to respond from that date, not from whenever the paperwork settles.
Request the existing policy schedule from the freeholder or their managing agent. It tells you the current sum insured, the excesses, and which perils are covered.
Request the claims history. Insurers generally want three to five years. This is the item most likely to hold up an enquiry, so ask early.
Check the rebuild figure. Ask when the reinstatement cost assessment was last carried out. Figures that have simply been index-linked for a decade are common. See block of flats rebuild cost.
Gather building information. Year built, construction type, roof type, number of flats, occupancy of each, fire safety arrangements, lift details, and any external wall system assessment.
At the Acquisition Date
- Cover in the RTM company's name, effective from the acquisition date
- The freeholder's interest noted on the policy where required
- Any lender interests noted where leaseholders' mortgage terms require it
- Confirmation in writing to the freeholder that cover is in place
After the Handover
Circulate the schedule to leaseholders. Leaseholders are generally entitled to a summary of the cover.
Budget the premium into the service charge for the year, in the proportions set out in the leases.
Set a renewal reminder well in advance — blocks are underwritten individually and the process is not instant.
Record occupancy changes. Flats becoming vacant, being let short-term, or being used for business purposes are all things insurers typically want to know about.
Consider cover for the directors themselves. Directors' and officers' liability is a common addition for RTM companies, because the directors are individuals making decisions about other people's money and homes.
Questions New Directors Often Ask
Does the freeholder still have a say?
The freeholder retains an interest in the building and is usually noted on the policy, but the RTM company arranges the cover.
Can we keep the existing insurer?
That is a commercial matter for the market. The practical point is that the policy needs to be in the RTM company's name, so a new policy is normally required rather than a transfer.
What if the block has a commercial unit?
Mixed-use blocks are underwritten differently. See block insurance with commercial units.
What if leaseholders disagree about the cost?
Service charge disputes are dealt with through the statutory service charge framework rather than by the insurer.
How We Help
Landlord Quote is an FCA authorised lead generation business. We do not arrange cover, give advice or quote premiums. We take the details of your block and, where your enquiry matches, pass them to an FCA regulated broker who works with RTM companies. They contact you directly.
Further reading: RTM company insurance and who insures a block of flats.
Beyond Leads Ltd T/A Landlord Quote is an FCA authorised lead generation business. We do not give advice, arrange cover or quote premiums. If your enquiry is matched, your details are shared with an FCA regulated broker who specialises in this sector.
Beyond Leads Ltd T/A Landlord Quote (FCA FRN 940006) is an FCA authorised lead generation business. We do not provide insurance advice, recommend policies, arrange cover or quote premiums. This page is general information only. If your enquiry is matched, your details are shared with an FCA authorised specialist broker who will discuss cover and pricing with you directly.