RTM Buildings Insurance
On the basis that you have set up, with your fellow leaseholders, a limited company, we’re please to offer you a quotation by clicking on the appropriate quote form link below.
RTM Buildings Insurance
Right to Manage (RTM) insurance is a specialist commercial property policy designed for leaseholders who have legally taken over the management of their building. Once an RTM company is formed, the legal responsibility to insure the structure, communal areas, and liabilities shifts from the freeholder to the RTM directors.
Why RTM Insurance is Different
- Legal Duty: The RTM company must insure the building strictly to the terms layout in the original lease.
- Shared Liability: Directors face personal liability for management decisions, requiring specialized protection.
- Complex Ownership: Policies must cover the joint interests of the RTM, individual leaseholders, and the freeholder.
Core Insurance Coverages Required
1. RTM Buildings Insurance
- Covers the cost of repairing or rebuilding the entire structure.
- Protects against fire, flood, storm, vandalism, and burst pipes.
- Includes blocks of flats, outbuildings, garages, and boundary walls.
- Provides alternative accommodation for residents if flats become uninhabitable.
2. Property Owners’ Liability
- Covers compensation claims for third-party injuries on the property.
- Protects against slips, trips, and falls in communal areas.
- Covers damage caused to third-party property by the building structure.
4. Communal areas
- Insures shared fitted carpets.
Essential Considerations for RTM Directors
Accurate Rebuilding Valuations
RTM companies must arrange a professional Building Reinstatement Cost Assessment (RCA) every 3 to 5 years. Insuring for the market value rather than the actual rebuild cost can lead to severe underinsurance and unpaid claims.
Freeholder Interests
The freeholder still owns the land. The RTM buildings insurance policy must legally note the freeholder’s interest to ensure compliance with the building’s lease agreements.
Managing Unoccupied Flats
If a flat sits empty for a specified period of consecutive days detailed in the policy wording, the RTM must notify the broker. Unoccupied properties face strict policy conditions and reduced coverage for risks like water damage.