Who Is Responsible for Buildings Insurance in a Block of Flats Depends on a Variety of Factors

Depending on how the building is owned and managed, the responsibility may sit with the freeholder, a residents’ management company (RMC), a Right to Manage (RTM) company, or, in some cases, another party named in the lease.

The key point is that the answer should usually be set out in the lease or management documents, rather than guessed. GOV.UK says leaseholders’ rights and responsibilities depend on the terms of the lease, and Leasehold Advisory Service guidance for leasehold flats says the landlord will usually arrange the buildings insurance, with leaseholders contributing through the service charge.

The short answer

For most leasehold blocks of flats, the freeholder or landlord arranges the buildings insurance for the whole building, and the leaseholders pay their share through the service charge.

However, responsibility can also sit with:

• a residents’ management company
• a Right to Manage company
• a management company acting on behalf of the freeholder
• the leaseholders collectively, if they own the freehold together
• another named party, if the lease says so

That is why the first step is always to check the lease.

1. When it might be the residents’ management company

Sometimes the freeholder is not the party arranging the insurance day to day.

In some blocks, a residents’ management company (RMC) is responsible for managing the building, arranging maintenance, and putting the buildings insurance in place. That often happens where the lease gives the management company responsibility for the insurance, even though the freehold itself may sit elsewhere.

This is one reason specialist block policies matter. Property Insurance Centre markets dedicated cover for residents’ management companies and block insurance, including liabilities and cover linked to communal ownership and management responsibilities.

2. What about Right to Manage (RTM) companies?

A Right to Manage company can also end up arranging the buildings insurance.

GOV.UK explains that Right to Manage allows qualifying leaseholders to take over certain management responsibilities from the landlord. If insurance arrangement becomes part of those management functions in practice for that building, the RTM company may be the one sourcing and placing the policy.

So if your block has exercised the Right to Manage, do not assume the freeholder is still handling everything. Check the lease, the RTM structure, and the management arrangements.

3. What if the leaseholders own the freehold?

If the leaseholders have collectively bought the freehold, or own it through a company, then responsibility usually sits with the freehold-owning entity or the directors acting for it.

In practical terms, that often means:

• the directors of the freehold company arrange the policy
• the premium is split across the flats
• the cost is collected through service charges or a shared contribution arrangement

Again, the important thing is that one properly arranged policy covers the whole building.

4. Can a leaseholder arrange the buildings insurance themselves?

Usually, no — not for the whole block unless they are the party legally responsible for it.

An individual leaseholder will normally insure their own contents and personal possessions, and sometimes improvements within the flat if the lease requires it, but the main buildings insurance for the block is usually arranged centrally by whoever is responsible under the lease. Property Insurance Centre’s block of flats content also notes that occupants should consider their own contents policy or tenants’ contents policy for belongings and liability within their own unit.

That is an important distinction:

• Buildings insurance = the structure and shared fabric of the block
• Contents insurance = furniture, belongings, and items inside an individual flat
• Landlord contents or fixtures cover = relevant if a flat is rented out furnished
• Liability inside the flat = may sit separately from the main block policy depending on the circumstances

5. What does the lease normally say?

The lease should usually make clear:

• who must insure the building
• what must be insured
• who pays for the premium
• whether terrorism cover or other extensions are expected
• whether the cost can be recovered through service charges
• what evidence of insurance leaseholders can ask to see

6. If there is confusion, the lease is the first document to check.

That matters because responsibility is not based on who assumes they are in charge. It is based on the legal arrangements governing the block.

What if no one is arranging the right cover?

This is where problems start.

If the wrong party arranges the insurance, or the block is insured under the wrong type of policy, it can lead to:

• gaps in cover
• disputes between freeholders and leaseholders
• difficulty recovering claims
• underinsurance
• missing extensions such as property owners’ liability, communal contents, loss of rent, or alternative accommodation

Property Insurance Centre’s block insurance material stresses that block policies are specialist products and may include important sections beyond basic buildings cover, depending on the building and occupancy.

For example, a converted house split into flats, a purpose-built apartment block, and a mixed-occupancy building may all need different underwriting treatment.

7. Common situations where people get confused

1. “I own a flat, so I thought I had to insure the building.”

Usually, you insure your contents, while the block itself is insured under one policy arranged by the responsible party.

2. “We have a managing agent, so they must be responsible.”

Not necessarily. The managing agent may arrange the cover, but often they are acting for the freeholder, RMC, or RTM company.

3. “We now have Right to Manage, so nothing changed.”

It may have changed a lot. RTM can shift management responsibilities away from the landlord.

4. “The cheapest policy is fine.”

Not always. A block policy needs to reflect the structure, occupancy, rebuild value, liabilities, and any special factors such as unoccupied units or previous claims. Property Insurance Centre presents block of flats cover as specialist insurance rather than a standard one-size-fits-all policy.

8. So, who should arrange the insurance?

Here is the practical version:

• If there is a freeholder and standard leasehold structure, usually the freeholder arranges it.
• If there is an RMC with responsibility in the lease: the RMC may arrange it.
• If the building is under RTM: the RTM company may arrange it as part of the management function.
• If the leaseholders own the freehold together: the freehold company or appointed directors usually arrange it.
• If a managing agent is involved: they may place the policy, but usually on behalf of the party legally responsible.

What should a good block of flats policy include?

That depends on the building, but a proper block policy will often need to consider more than just the walls and roof. Property Insurance Centre’s block-related pages and glossary refer to features such as property owners’ liability, communal contents, terrorism cover, employers’ liability where staff are employed, loss of rent, and alternative accommodation.

Depending on the risk, you may need to think about:

1. buildings cover based on the correct rebuild value
2. property owners’ liability
3. communal contents cover
4. loss of rent
5. alternative accommodation
6. terrorism cover
7. employers’ liability, if staff are employed
8. legal expenses

In most blocks of flats, the freeholder is responsible for arranging the buildings insurance, with the premium usually recovered from leaseholders through the service charge. But that is only the starting point.

The real answer depends on the lease, the ownership structure, and who has management responsibility for the building.

If you are not sure, do not rely on assumptions. Check the lease, confirm who is legally responsible, and make sure the building is insured under a proper specialist block of flats policy rather than a standard property policy that may not fully fit the risk. Property Insurance Centre positions block of flats insurance as specialist cover for this exact reason.

Unsure who should be arranging the buildings insurance for your block of flats?

We can help you work out who is responsible, what cover is needed, and whether your current policy is suitable for the building.