Who Insures a Block of Flats?

In almost every UK block, the lease — not the law — names the party who must arrange buildings insurance. This page explains who that normally is and what happens when management changes hands.

Reviewed by the Landlord Quote editorial team · Last updated 14 September 2026

In short

The lease is the starting point: it names the party with the insuring obligation.
In most long leases that party is the freeholder, acting through a managing agent.
Where leaseholders have exercised the Right to Manage, an RTM company takes over insuring.
Where leaseholders own the freehold jointly, an RMC or the joint freeholders arrange cover.
Individual leaseholders insure their own contents, not the structure.

Who is responsible for insuring a block of flats?

Whoever the lease says must insure — usually the freeholder, or a managing agent acting on the freeholder's behalf. In blocks where leaseholders have taken over management, the Right to Manage (RTM) company or resident management company (RMC) arranges the buildings policy instead.

A long residential lease is a contract between the flat owner and the freeholder. Almost all of them contain an insurance covenant: a clause obliging one named party to insure the whole building for its full reinstatement cost, to keep the policy in force, and to apply any claim payment towards reinstating the damage. The same clause normally allows the insuring party to recover the premium from the leaseholders through the service charge.

Because the obligation sits in the lease rather than in statute, you cannot assume responsibility from the building type alone. Two identical Victorian conversions on the same street can have completely different arrangements depending on how their leases were drafted and whether the leaseholders have since exercised statutory rights.

If you are unsure, the insurance covenant is normally found in the landlord's covenants section of the lease, often cross-referenced from the service charge schedule. The Land Registry title also shows who currently owns the freehold.

Things to consider

A managing agent arranging the policy is doing so as agent — the legal obligation still rests with the freeholder or the RTM/RMC company.
A handful of older leases place the insuring obligation on the leaseholders collectively; these need careful reading before renewal.
Where the freehold has changed hands, the new freeholder inherits the insuring covenant from completion.

Can leaseholders arrange their own buildings insurance?

Not for the structure of the building, in most cases. Where the lease obliges the freeholder or management company to insure the whole block, an individual leaseholder cannot substitute their own buildings policy — they insure their own contents and any improvements instead.

Blocks are insured as a single structure for a practical reason: a fire or escape of water rarely respects flat boundaries. One policy over the whole building avoids disputes between insurers, gaps between separate policies, and arguments about which insurer pays for communal damage.

Leaseholders do have rights over that policy. They can request a summary of the cover and inspect the policy documents, and since the FCA's multi-occupancy rules took effect they must be treated as customers of the buildings policy — with commission disclosed and pricing that can be justified as fair value.

There are exceptions. Some houses converted into two flats are insured under two separate policies where the leases allow it, and some share-of-freehold arrangements give the flat owners a direct say in who the insurer is.

Things to consider

Leaseholders should still hold contents cover, plus cover for fixtures and fittings they have installed.
Alternative accommodation after an insured loss is usually provided by the block policy — check the limit.
Where leaseholders believe the block premium is unreasonable, the route is a service charge challenge, not arranging a separate policy.

What happens to the insurance when an RTM company takes over?

The insuring obligation transfers to the RTM company on the acquisition date. From that point the RTM arranges and pays for the buildings policy and recovers the cost through the service charge, while the freeholder retains an interest that must be noted on the policy.

Right to Manage under the Commonhold and Leasehold Reform Act 2002 lets qualifying leaseholders take over management functions without buying the freehold and without proving fault. Insurance is one of the functions that transfers.

In practice the changeover needs planning. The existing policy is usually cancelled or lapsed at the acquisition date and a new policy incepted on the same day, with the freeholder and any lender noted as interested parties. Gaps of even a day are a real risk to avoid.

Underwriters will want the same information the previous insurer held: rebuild sum insured, construction and roof type, number of units, fire risk assessment, cladding position and a three to five year claims history. Getting the claims experience from the outgoing broker early makes the transfer far smoother.

Does a freeholder have to arrange buildings insurance?

If the lease contains an insuring covenant in the freeholder's name, yes — it is a contractual obligation, not a choice. Failing to insure is a breach of the lease and will almost always breach the terms of any mortgage secured on the building too.

Beyond the lease, a freeholder has a strong commercial interest in insuring. The building is their asset; an uninsured total loss leaves them holding a site with no structure and continuing obligations to leaseholders.

The obligation is also specific about the level of cover. Most covenants require insurance for the full cost of reinstatement, including professional fees, debris removal and any additional cost of complying with current building regulations when rebuilding.

Things to consider

Under-insurance can trigger an average clause, reducing a claim payment in proportion to the shortfall.
Some leases specify named perils that must be covered — check these against the policy schedule each year.
Freeholders of mixed-use blocks need wordings that cope with the commercial element as well as the flats.

Who insures a block where the flat owners own the freehold?

The joint freeholders, normally acting through a resident management company. The company named on the freehold title arranges one buildings policy for the whole block and splits the cost between the flats under the lease terms.

Share of freehold usually means the freehold is held by a limited company in which each flat owner holds a share, though in smaller buildings it can be held by up to four individuals as joint owners. Either way, the leases usually remain in place and continue to govern who insures.

The practical risk in these buildings is administrative rather than technical: without a managing agent, renewal dates get missed, rebuild valuations go stale and claims histories are lost when the directors change. Keeping a simple insurance file that passes between directors avoids most of it.

Who Insures a Block of Flats?

In short

Who is responsible for insuring a block of flats?

Things to consider

Can leaseholders arrange their own buildings insurance?

Things to consider

What happens to the insurance when an RTM company takes over?

Does a freeholder have to arrange buildings insurance?

Things to consider

Who insures a block where the flat owners own the freehold?

More questions

Can a managing agent choose any insurer they like?

What if the freeholder cannot be traced?