---
title: "Buildings Insurance for Blocks of Flats: What Leaseholders Are Entitled to See"
url: https://manage.management/blog/buildings-insurance-for-blocks-of-flats-what-leaseholders-are-entitled-to-see
description: "Your right to see the buildings insurance summary, policy and commission: the 1985 Act, FCA ICOBS 6A.7 rules, LAFRA permitted fees and renewal tips."
author: "Franklin Baeza"
published: 2026-10-30T06:30:00.000Z
updated: 2026-10-30T07:36:24Z
categories: ["Service Charges","Governance & Compliance"]
publisher: Manage.Management
language: en-GB
---

# Buildings Insurance for Blocks of Flats: What Leaseholders Are Entitled to See

Your right to see the buildings insurance summary, policy and commission: the 1985 Act, FCA ICOBS 6A.7 rules, LAFRA permitted fees and renewal tips.

Leaseholders in a block of flats are entitled to see what the buildings insurance covers, what it costs and who is being paid out of the premium. Under the Landlord and Tenant Act 1985 you can ask the landlord for a written summary of the insurance and to inspect the policy, and since 31 December 2023 the Financial Conduct Authority's rules require insurers and brokers to produce a summary of cover, pricing information and commission figures in cash terms for leaseholders. What is not yet in force is the planned ban on landlords and managing agents taking commission and replacing it with a "permitted insurance fee".

Buildings insurance is often the biggest single line in a service charge budget, and it is one of the least understood. This guide sets out what you can ask for today, who has to give it to you, what is still to come, and what resident directors should do at the next renewal.

> This article is general information about leasehold buildings in England, not legal or insurance advice. Check your lease, and take advice on any specific dispute.

## Key takeaways

- You can request a written summary of the buildings insurance from your landlord, who must provide it within 21 days (Schedule to the Landlord and Tenant Act 1985).
- You can then ask to inspect the policy and evidence of payment, with reasonable facilities free of charge.
- Since 31 December 2023, insurers and brokers must disclose the summary of cover, the premium breakdown and their commission in pounds, not percentages, for leaseholders (FCA rules, ICOBS 6A.7).
- The Leasehold and Freehold Reform Act 2024 will stop commission being passed on through service charges and replace it with a permitted insurance fee, but that part is not yet in force.
- Insurance costs must still be reasonably incurred, and you can challenge them at the First-tier Tribunal.

## Why does buildings insurance matter so much to leaseholders?

In most blocks, the lease makes the landlord, residents' management company (RMC) or Right to Manage (RTM) company responsible for insuring the whole building, and the leaseholders pay for it through the service charge. You do not choose the insurer, but you pay the premium, the tax and, historically, any commission shared with the landlord or managing agent.

After the Grenfell Tower fire, premiums for many multi-occupancy buildings rose sharply. The FCA's market work found [significant issues leading to poor outcomes for leaseholders](https://www.fca.org.uk/publications/policy-statements/ps23-14-multi-occupancy-building-insurance-feedback-cp23-8-final-rules), including high broker remuneration shared with freeholders and managing agents. That work led to the rules that apply today.

## What can you ask your landlord for under the 1985 Act?

The Schedule to the Landlord and Tenant Act 1985 gives every leaseholder who pays for insurance through the service charge two rights:

1. **A written summary of the insurance.** This should show the sum insured, the insurer's name and the risks covered. The landlord must provide it within 21 days of your written request.
2. **Inspection of the policy and evidence of payment.** After receiving the summary, you can ask to inspect the policy itself and proof that the premium was paid. The landlord must make reasonable facilities available, free of charge, within 21 days, or provide copies.

A recognised tenants' association can make the request on behalf of its members. Failing to comply without reasonable excuse is a summary offence. These rights sit alongside your right to request a summary of all service charge costs under section 21 of the same Act; our guide to [what a service charge is](https://manage.management/blog/what-is-a-service-charge-a-complete-guide-for-flat-owners) explains how they fit together.

## What do the FCA rules require from insurers and brokers?

Since 31 December 2023, the FCA has treated residential leaseholders as customers of the buildings insurance that covers their home. Under its [multi-occupancy building insurance rules](https://www.fca.org.uk/publications/policy-statements/ps23-14-multi-occupancy-building-insurance-feedback-cp23-8-final-rules), insurers and brokers must design products with leaseholders' interests in mind and ensure policies provide fair value.

The disclosure rules in ICOBS 6A.7 apply to policies taken out or renewed from 31 December 2023 and require firms to produce documents for leaseholders, including:

| Disclosure | Who produces it | What it tells you |
| --- | --- | --- |
| Summary of cover | Insurer | Main benefits, exclusions, duration and sum insured |
| Pricing information | Insurer | The premium, broken down to building or dwelling level where possible |
| Remuneration information | Broker or other intermediary | All commission and other remuneration, including amounts shared with the freeholder or managing agent, in cash terms |

The [FCA's final rules (PS23/14)](https://www.fca.org.uk/publication/policy/ps23-14.pdf) make clear the remuneration disclosure must cover all forms of remuneration, including contingent commission. The documents normally reach leaseholders through the freeholder or managing agent, who is the policyholder, but leaseholders can also ask the broker or insurer for them.

In practice, ask your managing agent first for "the ICOBS 6A.7 disclosure documents for the current policy year". If they do not arrive, ask the broker or insurer named on the schedule.

## What about buildings with fire safety issues?

For residential buildings over 11 metres or four storeys with identified fire safety issues, most major brokers signed the [Insurance Broker Pledge](https://www.gov.uk/government/publications/insurance-broker-pledge-for-leaseholders-in-buildings-over-11m-or-4-storeys-in-height-in-buildings-affected-by-fire-safety-issues/insurance-broker-pledge). Signatories commit to stop sharing commission with managing agents, landlords and freeholders on those buildings, cap their own retained commission at 15% of the premium, and disclose commission to leaseholders on request.

If your building has cladding or other fire safety defects, check whether your broker is a signatory and ask for confirmation that the pledge has been applied.

## What is changing next?

The Leasehold and Freehold Reform Act 2024 contains powers to stop "excluded insurance costs", meaning commissions and other payments for arranging insurance, from being recovered through variable service charges. Instead, landlords and managing agents would be limited to a [fair and transparent permitted insurance fee](https://www.gov.uk/government/consultations/consultation-on-introducing-permitted-insurance-fees-for-landlords-freeholders-and-property-managing-agents), charged separately from the premium and set by secondary legislation. The Act will also require landlords to give leaseholders more detailed insurance information proactively.

The government consulted on the permitted fee and published its response on 11 July 2025. The regulations that switch the ban on, and define the fee, still need to be made, so the ban is not yet in force. Until then, the position is: disclosure yes, prohibition not yet.

These changes sit within a wider reform programme, including the [permission fee caps and managing agent licensing announced in September 2026](https://manage.management/blog/leasehold-fee-caps-and-agent-licensing-what-the-governments-announcement-means-for-your-building) and the draft Commonhold and Leasehold Reform Bill.

## Can you challenge an insurance premium?

Yes. Insurance is part of the service charge, so it must be reasonably incurred under section 19 of the Landlord and Tenant Act 1985. The landlord does not have to find the cheapest policy, but the premium must be within the range a reasonable landlord would pay, and the process for choosing it should be sound.

To build a case:

- request the 1985 Act summary and the FCA disclosures;
- compare the premium with similar buildings, and get an alternative quote on the same basis, including the same sum insured and cover;
- look at the commission figures and what services, if any, were provided for them;
- check whether the sum insured matches a recent reinstatement cost assessment.

If the matter cannot be resolved, you can apply to the First-tier Tribunal (Property Chamber) under section 27A. Our guide to [using the First-tier Tribunal](https://manage.management/blog/first-tier-tribunal-for-leaseholders-when-and-how-to-use-it) explains the process, and [challenging an unreasonable service charge](https://manage.management/blog/service-charge-disputes-how-to-challenge-an-unreasonable-bill) covers the evidence to gather.

## What should resident directors do at renewal?

If your RMC or RTM company arranges the insurance, you are the customer the broker deals with, and leaseholders will look to you for answers. A simple renewal routine keeps the building on the right side of the rules:

1. **Start early.** Contact the broker two to three months before renewal and confirm the sum insured is based on a current reinstatement cost assessment.
2. **Ask for the market.** Ask which insurers were approached and why the recommended policy was chosen.
3. **Get the disclosures.** Ask for the summary of cover, pricing information and remuneration disclosure in writing at renewal, not after.
4. **Decide on commission.** Decide as a board whether any commission should be paid to the company or agent at all and, if it is, what work it pays for. The RICS Service Charge Residential Management Code expects commissions and other remuneration to be disclosed; see [what the RICS Code means for your block](https://manage.management/blog/rics-service-charge-code-what-the-new-standards-mean-for-your-block).
5. **Publish it.** Share the disclosures, the schedule and a short note of the board's decision with every leaseholder.
6. **Record claims.** Keep a log of claims and excesses so leaseholders can see how the claims history affects the premium.

Manage.Management lets directors store the policy schedule, FCA disclosures and renewal notes in the building's shared document library, so every leaseholder can see them without asking. The insurance renewal date sits on the compliance calendar alongside the fire risk assessment and other key dates.

## Frequently asked questions

### How long does my landlord have to send me the insurance summary?

21 days from your written request, under the Schedule to the Landlord and Tenant Act 1985. You can then ask to inspect the policy and evidence of payment, which must also be made available within 21 days.

### Can I get the insurance information directly from the broker?

Yes. The FCA's rules treat residential leaseholders as people the disclosures are produced for, so if the documents have not reached you through the freeholder or managing agent, ask the broker or insurer named on the policy schedule.

### Are managing agents still allowed to take insurance commission?

For now, yes, provided it is disclosed and justified as fair value. The Leasehold and Freehold Reform Act 2024 will replace commission recovered through service charges with a permitted insurance fee, but the regulations to bring that into force have not yet been made.

### Does my landlord have to choose the cheapest insurance?

No. The premium must be reasonably incurred, which means within the range a reasonable landlord would pay for suitable cover after a proper process. A much cheaper like-for-like quote is useful evidence if you challenge it.

### Can I arrange my own buildings insurance for my flat?

Usually not. Most leases of flats require the landlord or management company to insure the whole building, so leaseholders contribute through the service charge. You should still insure your own contents.

### What if my building has cladding problems?

Check whether the broker has signed the Insurance Broker Pledge, which removes commission sharing with landlords and agents and caps broker commission at 15% for affected buildings over 11 metres or four storeys.

## Make insurance visible

Buildings insurance only feels opaque when nobody shares the paperwork. The law already entitles leaseholders to see the cover, the cost and the commission. Ask for the disclosures, put them where every leaseholder can read them, and make the renewal a decision the whole building understands.

Last reviewed: 30 October 2026 by Franklin Baeza, Manage.Management. This article is general information for England and Wales, not legal advice. Check the current position with a qualified adviser before acting.

---

Source: [Buildings Insurance for Blocks of Flats: What Leaseholders Are Entitled to See](https://manage.management/blog/buildings-insurance-for-blocks-of-flats-what-leaseholders-are-entitled-to-see) on the Manage.Management blog.