Leaseholders in high-rise buildings with unsafe cladding systems face enormous hikes in buildings insurance.


Call to Action: Email DLUHC at correspondence@levellingup.gov.uk with evidence of exorbitant buildings insurance  (e.g. certificates showing increases year on year). Please copy our team at endourcladdingscandal@gmail.com so that we can follow up where necessary.

The cladding scandal has given rise to a buildings insurance scandal that is costing leaseholders thousands of pounds in additional service charges on top of what they are already paying for interim measures such as waking watches.

After the Financial Conduct Authority (FCA) forced their hand, the insurance industry is finally planning a risk pooling scheme. But it won’t help all affected leaseholders and the Association of British Insurers (ABI) can’t confirm that it will even go ahead.

Latest Updates

ABI – Building safety: work progresses on risk-sharing scheme to reduce costs for leaseholders (12 June 2023)

FCA sets out multi-occupancy leaseholder insurance reforms (21 April 2023)

FCA report on insurance for multi-occupancy buildings (21 September 2002)

ABI – Next steps in the industry’s work to support leaseholders affected by the building safety crisis (1 December 2022)

The ABI continues to refute suggestions that insurers may be profiteering due to the cladding scandal. However, leaseholders argue there is no justification for such punishing increases in insurance premiums given that interim measures are already in place to mitigate the fire risk in their buildings.

Background

In January 2021, Consumer magazine Which? reported that leaseholders were paying over £3,000 a year each for insurance, with some facing increases of over 1,000% (27/01/21).

The Guardian had previously reported that the National Fire Chiefs Council (NFCC) had met the Association of British Insurers (ABI) to express their concerns over these increases (06/10/20).