Insurance for Right to Manage and Residents’ Management Companies

If you’re a Leaseholder, Right to Manage or Residents’ Management Company our property insurance experts will ensure your cover is tailored to meet the specific risks faced.
insurance for rights to manage

Why use Glowsure for your Right to Manage Insurance?

Glowsure is based on the simple foundation of ‘making insurance easy’. We don’t have call centres or phone queues and we won’t fob you off to the insurer if you have a claim.

If the worst happens, we will deal with the claim and fight for every penny you're entitled to... and mean that, our team of insurance superheroes won't give up until it's sorted!

We’ll explain things in plain English and we’ll even come to see you if you like. Because Glowsure is an independent insurance broker, we can search the market for you for the best cover at the best price available to us.

We can arrange cover for a house converted into just two flats or a large purpose-built block with many individual flats. We aim to make every interaction with us an easy and positive one.

What Insurance Do I Need?

You will need specialist insurance because standard buildings insurance policies won’t provide adequate cover. When damage or loss occurs to a block of flats it can impact on many households. By ensuring the appropriate cover is in place, innocent flat owners can be spared potentially significant financial hardship in addition to the disruption caused by the damage.

We recommend specialist policies intended to ensure the complex needs of all interested parties (Leaseholders, freeholders, residents’ associations, management companies and right to manage companies) are met. A block policy will cover the whole building for all major risks such as fire, storm, flood and leaks (burst pipes) trace & access together with the following common extensions.

  • Loss of rent / alternative accommodation
  • Property owners liability of £5,000,000 or £10,000,000
  • Communal contents up to £25,000
  • Employers Liability of £10,000,000

The unique specially enhanced wordings we recommend also extend to include:

    • Automatic extension for repairs / contract works up to £50,000
    • A non-invalidation clause to prevent the policy being invalidated by events unknown by or outside the control of the policyholder
    • Automatic extension to the Public Liability section to protect management companies, residents’ associations, right to manage companies and lessees
    • Automatic extension to extend loss of rent cover to private lessees who rent their flats
    • Removal of onerous Unoccupancy clauses replaced by a simple £500 excess
    • Automatic inclusion of interested parties
    • Automatic transfer of interest extension to cover sale of flats
    • No Average Clause wording thereby preventing any further financial loss in the event of under-insurance with selected insurers
    • Automatic compliance with the mortgage lenders handbook

What else do I need?

In order to offer full protection against the risks faced we would also recommend the following additional covers/policies are considered where appropriate:

  • Management liability for residential management companies:To protect your personal assets if you are a director of a management company.
  • Rebuild Cost Assessment: To obtain a correct rebuild valuation to prevent under or over insurance.
  • Terrorism: To provide cover for damage caused by terrorist activity.
  • Engineering Inspection/Insurance: To provide Statutory Inspections of lifts and other plant by a Qualified Engineer and insurance cover for Breakdown, Sudden & Unforeseen Damage, Explosion and Collapse.

Right to Manage Insurance Claim Examples

Extremely strong winds lifted the roof off a block of flats causing substantial damage to the structure and the flats. Water seeped through the top floor flats down to the ground floor flats, with all flats in the block being affected. The insurers covered the cost of; temporary repairs to the roof to make it watertight and prevent further damage, professional fees, the reinstatement costs to the roof, the cost of repairs to each individual flat, and the alternative accommodation costs for each leaseholder that needed to move out due to not having the use of their kitchen and/or bathroom, or their general health and safety was at risk. The claim was settled for circa £120,000.

Useful Information & FAQ’s

The Landlord and Tenant Act allows a Leaseholder to request a summary of the insurance cover and a further right to inspect and copy any relevant policy or associated documents. Information or access must be provided by the Landlord within 21 days of the serving of the relevant notice on them. A landlord is not obliged to try to get the lowest insurance premiums and is entitled to claim from the tenant sums properly paid for insuring the demised premises.

Last year the insurance market in the UK entered a phase where insurers began withdrawing capacity, competition reduced, and underwriters became increasingly selective about which risks they would insure and at what terms. This is known as a hard market and as a result premium rates have increased.

Saving money on buildings insurance is something every flat and block of flats owner wants to do although cheaper is not always better. Through proper risk management savings are possible and a previously poor claims history can be improved. Each block is unique and we will work you to understand your risk and present your story to insurers to obtain the best cover for your needs at the best price available to us.

In a hard market any increased exposures, such as highly combustible cladding become ever harder to place. Insurers will want to see that you can demonstrate a highly proactive approach to risk management and remediation. They will require that all relevant tests for properties where these types of external wall systems are present have been undertaken and may request additional terms or requirements over and above that noted within FRA and EWS1 reports. Underwriters will take into account the type of cladding and percentage of combustible or highly combustible materials used.

The building should be insured for reinstatement purposes which is the cost of rebuilding as new, including demolition, clearance and professional fees. It is not the market value. There are so many factors that can affect the cost of rebuilding this is a matter that should be left to the experts. A Rebuild Cost Assessment by a RICS qualified professional is the best way to make sure you are adequately insured. We can help with this.

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Talk to our insurance superheroes today and find out how we can help save you time and money. We make finding the right insurance policy easy!

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5/5

Customer Reviews

Glowsure sourced an excellent quote quickly for buildings insurance and happily followed up on the various queries from myself and the other owners. They dealt with those queries promptly and explained things very clearly and provided better cover at a better price and generally made the process much less stressful and difficult than is often the case. Very patient, polite, friendly and extremely helpful and provided an excellent service. I have every intention of looking to Glowsure to sort out all my insurance requirements from now on and I am delighted Was was able to help.

Margaret Dowdles - Property Owner

Glowsure were fantastic and efficient at arranging buildings insurance for my block of flats. I would highly recommend them. An excellent and competitive service. Thank you!

Siobhan Orchard-Webb (Flat owner for arranging the block policy)
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