Right to Manage (RTM) Buildings Insurance

Right to Manage (RTM): How Leaseholders Can Take Control of Their Building Insurance

For many leaseholders, the management and insurance of their block of flats has traditionally been handled by a management company or freeholder. While this can be convenient, it often leaves residents with little say over key decisions — including which insurer is chosen and at what cost.

Thanks to the Right to Manage (RTM) legislation, that’s changing. Leaseholders now have the legal power to take control of how their building is managed — and that includes the ability to shop around for building insurance.

At WTJ Insurance Brokers Ltd, we help RTM companies and leaseholders secure competitive, tailored insurance cover that meets their needs and can often save money compared to existing arrangements.

What Is Right to Manage (RTM)?

Introduced under the Commonhold and Leasehold Reform Act 2002, the RTM process allows leaseholders of flats to collectively take over certain management responsibilities from their freeholder — without having to prove bad management or pay compensation.

Once an RTM company is formed and takes over, leaseholders can choose their own contractors, organise maintenance, and crucially — arrange their own buildings insurance.

Why This Matters for Insurance

When a freeholder or external management company arranges insurance, leaseholders:

• Have no control over the choice of insurer
• May pay higher premiums due to lack of market comparison and ‘commission kickbacks’ paid to the freeholder or external management company.
• Might be tied into restrictive policy terms

With RTM, you can:

• Obtain multiple competitive quotes from a wide range of insurers
• Tailor cover to your property’s specific needs
• Ensure transparency over fees and commission
• Potentially save significant costs for all residents

How WTJ Insurance Brokers Ltd Can Help

We specialise in arranging insurance for RTM companies and leaseholder groups.
Our service includes:

• Access to A-rated leading UK insurers with strong claims support
• Independent, unbiased market comparison
• Policies tailored for blocks of flats, including property owner’s liability, communal area cover, alternative accommodation, loss of rental income, legal expenses and terrorism cover.
• Advice on risk management to help keep premiums low

We take the time to understand your property and your priorities, then negotiate on your behalf to secure the best possible terms that are fit for purpose.

Taking the Next Step

If your block has recently achieved RTM status — or you’re in the process — now is the perfect time to review your insurance. Even if you’re happy with your current policy, a quick comparison can confirm whether you’re getting value for money and crucially, if it’s actually providing you with the cover you need.

Article by David Woollin, WTJ.

If you would like to discuss your buildings insurance or would like a quote please contact us on 01924 871111 or email insurance@wtj.co.uk or alternatively leave your details below and one of our staff will make contact with you.