Buildings insurance in your service charge: commissions and challenges

England and Wales · Law checked 24 October 2026 · Not legal advice

Insurance is often the biggest single line in a service charge. Landlords or agents sometimes receive commission from the broker or insurer.

What you can do now

• Use section 22 to see the policy schedule and invoices, and ask in writing whether commission was paid and to whom.
• Get a comparison quote for the same cover. A premium can still be "reasonably incurred" if the landlord tested the market, so focus on process and cover.
• Check the leaseholders' right to ask for a summary of insurance cover (Schedule to the 1985 Act, paragraph 2).

What's coming

The government has consulted on a "permitted insurance payment" regime under the 2024 Act. As of October 2026 it isn't in force.