Block Policy Buildings Insurance: The Right Most Guides Don’t Mention

August 22, 2026 4 Min Read

Block policy buildings insurance covers a whole building of flats under one shared policy. The freeholder, a management company, or a residents’ group arranges it, and everyone pays through the service charge. That much is well covered online. Here’s what’s missing, even from the newest guides: leaseholders now have a legal right to see exactly how much commission gets paid on that policy. One guide updated as recently as 18 August 2026, from a major insurance broker, still skips this entirely.

Quick Answer: Block Policy Buildings Insurance

A block policy is one buildings insurance policy for a whole block of flats, not separate policies per flat. Who arranges it? Usually the freeholder. Sometimes it’s a Residents’ Management Company (RMC) or a Right to Manage (RTM) group instead, depending on the building’s setup. Check the lease first — it should say who must insure the building and who pays. Here’s the key point: since 1 January 2024, new rules treat leaseholders as real customers of that policy. That gives you the right to see commission details, not just a bare bill.

Who Arranges Block Policy Buildings Insurance

In most leasehold blocks, the freeholder arranges the insurance. They recover the cost through everyone’s service charge. That’s the default, but it’s not the only setup. If the building has a Residents’ Management Company, the RMC usually takes on that job instead. If leaseholders have gone through Right to Manage, the RTM company takes over. And if leaseholders jointly own the freehold, they arrange it between themselves. The lease is the document that settles this. It should state who must insure the building, what needs covering, and who pays the premium. If you’re not sure, check the lease first. Don’t just guess based on who sends the bill.

The Right Most Guides Leave Out

Here’s what four well-ranked guides on this topic all skip — even one from a big broker, last updated 18 August 2026. Since 1 January 2024, new rules changed things. Leaseholders now count as customers of the policy, not just people who pay the bill. Insurers and brokers must put leaseholders’ interests first. They can’t pick a policy just because it pays them more commission. And they must tell leaseholders the real details, including what commission was paid, and to whom.

This matters because of what the regulator found when it looked. Real money was moving in ways leaseholders rarely saw. Broker commission on these policies rose 46% on average. Firms paid out more than £80 million in commission to other parties, usually the freeholder or the managing agent. If your service charge has a buildings insurance line that looks high, you now have a real reason to ask where that money goes.

What You Can Actually Ask For

You can ask your freeholder or managing agent for a full breakdown of the policy costs. That includes any commission paid, and who got it. This isn’t just good customer service on their part — it’s a direct result of the new rules. If they say no, that refusal itself is worth raising. The rules exist so leaseholders aren’t kept in the dark about where their money goes. Put your request in writing, keep a copy, and name the FCA’s leasehold insurance rules if you need to push back.

What a Block Policy Typically Covers

Standard cover includes the building’s structure, shared areas like hallways and stairwells, and liability cover if someone gets hurt on shared property. Many policies also add loss-of-rent cover, in case the building can’t be lived in after a covered event. Optional extras like legal expenses cover or terrorism cover are common too. The price depends on things like the building’s age, size, location, construction type, and security features. That’s a big part of why two similar-looking buildings can pay very different premiums.

FAQ: Block Policy Buildings Insurance

Who is responsible for arranging buildings insurance in a block of flats?
Usually the freeholder, though it can be a Residents’ Management Company or a Right to Manage company depending on the building. The lease should state who’s responsible.

Can a leaseholder challenge the cost of the block’s buildings insurance?
You can request a full breakdown of the policy, including commission, under the FCA’s leasehold insurance rules in force since 1 January 2024. This gives you a real basis to question costs that seem high.

Do leaseholders have a right to see what commission is paid on their block’s insurance policy?
Yes. Since 1 January 2024, FCA rules require insurers and brokers to disclose commission details to leaseholders, who are now legally treated as customers of the policy.

What does a block buildings insurance policy typically cover?
The building structure, communal areas, and liability cover as standard, often with optional extras like loss of rent, legal expenses, or terrorism cover.

What happens if the freeholder won’t share details of the insurance policy?
Put your request in writing and reference the FCA’s multi-occupancy leasehold insurance rules directly. The rules exist specifically to stop leaseholders being refused this information.