Right to Manage (RTM) Insurance

Creating a right to manage (RTM) can be extremely useful for the owners and tenants in a block of flats.

Not only can it result in savings on the buildings insurance and other cover for everyone involved, but the ability to establish an RTM company is provided in order to give leaseholders power over their investments, since they generally hold most of the value of the property. It also gives them the opportunity to do something about the condition and maintenance of their properties if the freeholder is a neglectful or absent property owner.

If you are looking for right to manage insurance or related products to cover a block of flats, Adler Insurance Brokers can offer you a variety of products that may suit your requirements.


Setting up a right to manage company means that the members of the RTM will usually take over arranging the buildings insurance.

This may result in significant savings, if cover is from a wider market, rather than at the choice of the freehold property owner, who may not always look for the best quote or most comprehensive cover for the block of flats.

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Adler Insurance Brokers is extremely knowledgeable in providing insurance for RTM companies, including a variety of alternative solutions for the leaseholders and tenants of blocks of flats. We provide RTM insurance, including a number of bespoke schemes specifically designed for a right to manage company.

Our policies usually offer quality at affordable and competitive premium rates, including a dedicated claims service, amongst:

To find out more, call Adler Insurance Brokers on 0121 764 7575. Alternatively, use our online quote form.

RTM Insurer's we use: Axa, LV=, Zurich, Allianz, Aviva, Hiscox, RSA, Miles Smith, NIG

Comprehensive RTM insurance might include:

  • Buildings
  • Contents of communal areas
  • Loss of rent or alternative accommodation cover
  • Property owners’ liability insurance
  • Employers’ liability insurance (covering caretakers, for example)
  • Subsidence, landslip and heave cover
  • Engineering cover for communal lifts and boilers

A single policy provides cover for the entire building, as opposed to individual policies can be extremely advantageous. Financially, an RTM can enjoy improved premium rates, and in practice, a single block of flats or apartments policy is simpler to manage from an administrative perspective.

Policies can also be tailored to include:

  • Legal expenses
  • Terrorism insurance
  • Damage by wet or dry rot
  • Possible restrictions when your property is unoccupied
  • Damage due to a fault or limit of design, manufacture or installation. In particular there is no cover for damage to underground services that do not work because they are worn out
  • The cost of replacing any undamaged items, which form part of a set, suite or item of a uniform nature
  • Loss or damage to your buildings from any cause not listed in the policy booklet (wider cover is available with the accidental damage option)
  • An excess will apply to all claims, which will vary insurer to insurer and will be detailed in your policy booklet

These are some of the key exclusions/limitations, full details will be found in policy wordings.

According to the Common hold and Leasehold Reform Act 2002, the flat owners in a block of flats may choose to take over the management of the building and make their own decisions regarding issues such as service charges, repairs and upkeep, as well as buying insurance for the property.

RTM applies only to leasehold flats, but you must meet additional criteria that includes:

  • The building must be self-contained
  • It must consist of at least two flats
  • At least two-thirds of the properties in the block of flats must be owned by qualifying tenants (i.e. a leaseholder whose lease was originally granted for a period exceeding 21 years)
  • Commercial space must not exceed 25 per cent of the total floor area
  • The landlord cannot be a local authority
  • If it is a converted property of four flats or fewer, the landlord or an adult member of the landlord’s family cannot occupy any of the flats as a principal residence
  • At least 50 per cent of the leaseholders must agree to establishing an RTM

To establish an RTM, a formal notice needs to be served to the property owner. After a certain period, the management of the property becomes the responsibility of the RTM, and the freeholder is entitled to membership of the company.

The right to manage company must be incorporated and issue the appropriate Memorandum and Articles of Association. All of the leaseholders in the block of flats are entitled to become members, with an individual liability limited to £1. Although right to manage companies are only required to have a single director, more than on is recommended.

With Adler Insurance, you can be confident that, in the event of the worst happening, your claim will be handled by a dedicated claims team.

Simply contact our team using the details within your policy documents, or call them direct on 0121 764 7563. They will talk things through with you, guiding you through your next steps and the whole process.

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