Managing a block of flats involves many responsibilities which include ensuring the right insurance is in place. This checklist will help you understand the key types of insurance you should consider, what questions to ask your broker, and how to stay compliant with leases and regulatory requirements.
GUIDE
Essential Insurance Checklist for Residential Management Companies (RMCs) and Right to Manage (RTM)
Buildings Insurance
Why you need it
Protects the structure of the building, and communal areas, against damage or loss. Typically a lease requirement.
Checklist:
- Is the policy tailored for multi-occupancy buildings?
- Does it cover full rebuilding cost (including outbuildings and communal areas)?
- Are alternative accommodation and loss of rent included?
- Is property owners’ liability included?
- Does it meet the requirements set out in the lease?
- Does the insurer offer good claims handling and service?
Directors & Officers (D&O) Liability Insurance
Why you need it
Protects directors, officers, and committee members of your RMC or RTM company against claims arising from their management decisions.
Checklist:
- Are all directors, officers, and committee members insured?
- Does the policy cover defence costs, settlements, and fines?
- Is the policy part of a broader management liability package?
- Does it include Corporate Legal Liability (covering the company itself)?
Engineering Inspection and Insurance
Why you need it
Legal requirement to regularly inspect lifts and lifting equipment to ensure safety.
(LOLER Compliance)
Checklist:
- Are lifts, stairlifts, and other mechanical equipment inspected every six months?
- Are inspection reports detailed and accessible?
- Does your insurance cover sudden damage, injury claims, and breakdowns?
Terrorism Insurance
Why you need it
Standard buildings policies usually exclude damage from terrorism, yet it is often a lease requirement.
Checklist:
- Does your policy include terrorism cover?
- Have you checked the lease for any specific terrorism insurance requirements?
- Are loss of rent and alternative accommodation costs covered under terrorism?
Residential Estates Insurance
Why you need it
If your development includes shared spaces – such as unadopted roads, pathways, play areas, green spaces, or communal outbuildings – standard buildings cover may not be enough. FlatGuard Estates provides specialist protection for the “spaces in between,” helping you remain compliant with lease and TP1 obligations.
Checklist:
- Does your estate have unadopted roads, pathways, or drainage systems?
- Are communal structures, out-buildings, or street furniture insured?
- Is public liability cover included for accidents in shared spaces?
- Does the policy cover employers’ liability and legal expenses?
- Does it include protection for managing agents where applicable?
- Are non-standard features (e.g. playgrounds, water features, events) referred and covered?
Broker transparency and FCA compliance
Why you need it
Your broker should provide clear details on costs, commissions, and ensure your policy offers fair value.
Checklist:
- Have you received a clear breakdown of premium costs and broker fees?
- Does your broker explain why the chosen policy offers fair value?
- Are you confident your broker is FCA compliant regarding transparency and service?
Additional considerations:
- Review your insurance annually or after any significant changes to the property.
- Keep clear records of policies, inspections, and claims.
- Communicate insurance costs and coverage clearly with leaseholders.
- Check if other covers are needed, such as employers’ liability or legal expenses.
