In short
In most blocks the lease requires the landlord, RMC or RTM company to insure the whole building and recover the premium through the service charge. We obtain quotes through more than one broker, check the sum insured against a proper reinstatement valuation, disclose all remuneration in writing, and notify and coordinate claims.
Who insures the building
The lease decides. Usually the landlord (or the RMC or RTM company) insures the structure and common parts of the whole building, and each leaseholder insures their own contents and improvements. Leaseholders have the right to ask for a summary of the cover and to inspect the policy.
How we handle renewal
- Review the claims history and riskTwo to three months before renewal we review claims, changes to the building and any issues raised by insurers or surveyors.
- Go to the market through several brokersWe work with more than one independent broker so the building is not tied to a single intermediary's panel.
- Compare like for likePremium, excess (especially the escape of water excess), sum insured, exclusions and the claims service, set out in a short comparison for the directors.
- Directors decide and leaseholders are toldThe chosen policy, the premium and any remuneration are recorded and the schedule is filed in the building's folder.
Reinstatement cost valuation
The sum insured should reflect the cost of rebuilding the building, not its market value. If it is too low, a claim can be reduced; if it is too high, everyone pays too much. We recommend a reinstatement cost assessment by a qualified surveyor periodically, commonly every three years, with index-linking in between.
Commissions and transparency
Insurance commissions paid to brokers, freeholders and agents have been heavily criticised. Since 31 December 2023, Financial Conduct Authority rules (PS23/14) have required insurers and brokers to treat leaseholders as customers, to provide fair value and to disclose policy, pricing and remuneration information, which must be made available to leaseholders. The Leasehold and Freehold Reform Act 2024 goes further and will replace commissions with defined "permitted insurance payments" once regulations are made; in July 2026 the government confirmed these measures will follow with at least 12 months' notice.
Our position is simple: any payment EKIN receives in connection with a building's insurance is disclosed in writing to the directors and leaseholders.
Claims
When something goes wrong, we make the first notification to the insurer, arrange emergency make-safe work where needed, keep the affected residents informed and record the claim in the building's claims log. Routine coordination of straightforward claims is part of our management service. Larger or complex claims, which need sustained work with loss adjusters, contractors and residents, are managed as an additional service agreed with the board in advance.
Other cover to consider
- Directors' and officers' insurance for the volunteer directors of an RMC or RTM company.
- Property owners' liability for injuries in the common parts, usually included in the buildings policy.
- Engineering inspection for lifts and other plant.
- Terrorism cover, which some lenders require.
Frequently asked questions
Can a leaseholder arrange their own buildings insurance instead?
Not usually. If the lease requires the landlord or management company to insure the whole building, individual leaseholders cannot opt out, although they can challenge an unreasonable premium.
Why has our premium gone up so much?
Common reasons are claims history (especially escape of water), an increased reinstatement value, changes in the insurance market and, for some buildings, fire safety or cladding concerns. We explain the reasons at every renewal.
What is the escape of water excess?
The amount the building pays towards each water leak claim before the insurer pays. Repeated leak claims often lead insurers to raise it. We track leaks and their causes to keep this under control.
Last reviewed 2026-09-23 against the sources listed. This page is general information about England and is not legal advice; the lease for your building always comes first.
Sources: FCA PS23/14 Multi-occupancy building insurance; FCA Handbook ICOBS 6A.7; Lease advice: leasehold reforms to charges.