Understanding the Right to Manage (RTM) for Block of Flats

Managing a block of flats involves various responsibilities, from maintenance to insurance coverage. The Right to Manage (RTM) provides leaseholders with a legal mechanism to take control of the management of their property, including maintenance, repairs, and crucially, insurance.

What is RTM?

RTM allows leaseholders to form a company to take over the management functions from the landlord or managing agent. This empowers leaseholders to collectively make decisions about the management of their property, including the selection of insurance policies.

How Does RTM Relate to Insurance?

  1. Choice of Insurance: With RTM, leaseholders gain the authority to select the insurance policy that best suits the block of flats. This includes deciding on the scope of coverage, excess amounts, and the insurance provider.
  2. Tailored Coverage: Leaseholders can opt for tailored insurance solutions that fit the specific needs of the property, ensuring comprehensive coverage against perils such as structural damage, liabilities, and loss of rent.
  3. Control over Costs: RTM allows leaseholders to manage insurance costs effectively. By collectively choosing the policy, they can negotiate premiums, ensuring cost-efficiency without compromising on coverage.
  4. Transparent Decision-Making: RTM enables transparency in decision-making. Leaseholders have a say in the type of coverage selected, understanding the insurance policies in place and ensuring they meet the property’s requirements.

Importance of Proper Block of Flats Insurance in RTM

When exercising the Right to Manage, securing adequate insurance is paramount:

  • Risk Mitigation: Comprehensive insurance coverage mitigates the risk of financial loss due to unforeseen events like fire, floods, or accidents on the property.
  • Liability Protection: Proper insurance shields leaseholders against potential liabilities arising from accidents or damage within the property’s premises.
  • Financial Stability: In the event of a claim, a well-structured insurance policy ensures financial stability for repairs, maintenance, or any legal proceedings.

The RTM Process and Insurance Selection

  1. Formation of RTM Company: Leaseholders must follow legal procedures to form an RTM company.
  2. Notice of Claim: Serve the notice of claim to exercise the right to manage.
  3. Taking Over Management: Once the RTM is acquired, leaseholders can take control of insurance decisions, ensuring adequate and appropriate coverage.
  4. Insurance Review: Assess the existing insurance policies and select or renew coverage that aligns with the property’s needs.


The Right to Manage offers leaseholders the opportunity to govern their block of flats, including crucial decisions regarding insurance. With proper understanding and careful consideration, leaseholders can select insurance coverage that best safeguards their property and its inhabitants. Making informed choices about insurance under RTM is pivotal to securing the property’s future and ensuring peace of mind for all stakeholders involved.

If you’re considering exercising your Right to Manage, ensure to explore insurance options thoroughly to protect your property investment effectively.

The find out more on Block of Flats Insurance call us on 01934 643400