Relief from exorbitant insurance costs needed urgently

For years leaseholders have been facing issues with the opaque residential building insurance regime – whether the cartel-like behaviour of the insurers, clear conflicts of interest and secretive commission arrangements between freeholders, brokers, managing agents and insurers or the simple fact that we have no ability to influence the selection of the insurer and no redress once exorbitant premiums are forced onto us.

Analysis of 143 buildings in 2021 evidenced insurance premiums increasing by an average 350% on an annualised basis and, in the last two years, we have provided over a hundred examples of extortionate building insurance premiums to the Government. Following a meeting with the ABI and BIBA and the Government in March 2021, we reported this market failure to the CMA and FCA in May 2021:

Read our report here

Unfortunately, despite insurmountable evidence of sharp insurance practices, no progress whatsoever has been made to help innocent leaseholders with this aspect of the building safety crisis – Mr Gove’s recognition of the market not working effectively, and his letter to the FCA, is a start but we are deeply concerned that the timescale for a solution and actual help with exorbitant insurance costs is still some way down the road given the request for initial feedback within three months and a final report within six.

We are spending thousands of pounds just to stand still – our life savings have been decimated by this crisis and building reserves have been drained – as we wrote in our letter to the Prime Minister in March 2021, we desperately need urgent relief from these costs now rather than at some undetermined point in the future.

The End Our Cladding Scandal campaign calls on the Government to lead an urgent, national effort to fix the building safety crisis.

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