Right to Manage (RTM) Residents Associations (RA) & Residents Management Companies (RMC)
At Adler Fairways, we specialise in creating tailored insurance policies to meet the needs of Right to Manage (RTM) Companies, Residents Associations (RA), or Residents Management Companies (RMC).
Taking care of a block of flats or apartments is a lot of work and, depending on the ownership structure and preferences of those involved, can be organised through a Right to Manage arrangement, a Residents Association, or a Residents Management Company
Whilst there are some legal differences in the way they are structured, in general these bodies play an active part in making sure the building, its facilities and general upkeep are all properly maintained for the benefit of the tenants. They are also usually responsible for arranging insurance for the property and individual flats, which can result in cost savings for everyone involved. In practice, a single policy is also simpler to administer.
Rules on multi-occupancy buildings insurance
Effective from 31 December 2023, the Financial Conduct Authority (FCA) confirmed new measures to support leaseholders in the multi-occupancy buildings insurance market. Find out how this impacts you.
Whichever way your block of flats or apartments is run, Adler Fairways offers a variety of insurance products to suit your precise requirements. We have extensive experience and access to a number of bespoke insurance schemes specifically designed for Right to Manage arrangement, Residents Associations and Residents Management Companies.
RTM, RA & RMC insurance policy features*
The features would depend on the property and the body running it, but might typically include:
- Buildings
- Contents of communal areas
- Loss of rent or alternative accommodation cover
- Property owners’ liability insurance
- Employers’ liability insurance (covering caretakers, for example)
- Subsidence, landslip and heave cover
- Engineering cover for communal lifts and boilers
- Legal expenses and terrorism insurance, as optional extras.
Typical exclusions include:
- Damage by wet or dry rot
- Possible restrictions when your property is unoccupied
- Damage due to a fault or limit of design, manufacture or installation. In particular there is no cover for damage to underground services that do not work because they are worn out
- The cost of replacing any undamaged items, which form part of a set, suite or item of a uniform nature
- Loss or damage to your buildings from any cause not listed in the policy booklet (wider cover is available with the accidental damage option).
FAQs
What is the difference between insurance policies for an RTM, RA, and RMC?
While all three are responsible for managing a block of flats or apartments, an RMC is a company, typically limited by shares but can be limited by guarantee, where leaseholders are shareholders. An RTM must be limited by guarantee and is formed by leaseholders who have exercised their statutory right to take over the management of their building. An RA is a non-statutory body that still represents the residents’ interests, but it doesn’t have the same legal powers of an RMC or RTM.
The insurance needs are often similar, but as a broker we’re able to offer bespoke policies designed to accommodate the specific legal requirements of each.
Do RTMs, RAs, and RMCs need employers liability insurance?
If your RTM, RA, or RMC has any employees (such as a caretaker, cleaner etc), even on a part-time basis, you’re legally required to have employers liability insurance. This is to protect you against potential claims from employees who become injured or ill because of their work.
How much do insurance policies cost for RTM, RA, and RMC insurance?
There are quite a few factors that can influence the cost of an RTM, RA, or RMC insurance policy, including the type of body running the property, where the building is based, its value, the type of materials used during construction, size, the level of cover, and your previous claims history. As a broker, we‘ll act in your best interests to tailor a bespoke package at a competitive price that meets your exact needs.
Please speak to a member of our team for a no-obligation quote.
*This information is a general guide only. Adler Fairways will assess your requirements and recommend a bespoke range of insurance solutions to meet your needs. As part of the quotation process, we will provide full details of the specific coverage, benefits, limits, premiums, exclusions, excesses payable, and any other policy conditions that would apply to the insurance we recommend for you. We currently only offer cover to businesses registered in England, Scotland, Wales, Northern Ireland, the Channel Islands and the Isle of Man.
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