Housing: Insulation
The question
To ask the Secretary of State for Housing, Communities and Local Government, what steps her Department is taking to prevent leaseholders from absorbing the cost of increases in insurance premiums for buildings undergoing remediation works for flammable cladding.
Answered by Alex Norris
Leaseholders are usually responsible for paying for buildings insurance, according to the terms of their lease. Buildings insurance premiums for all buildings have risen considerably since the Grenfell tragedy; some leaseholders in buildings with fire safety defects are facing extremely high premiums. A Financial Conduct Authority report stated that premiums have risen by 94% for buildings without flammable cladding between 2016 and 2021, and by 187% for buildings with identified flammable cladding.
My officials are working with the insurance industry, as announced in the Remediation Acceleration Plan, to consider whether, for the duration of remediation programmes, government might support industry to reduce fire related liabilities, in order to reduce the high insurance bills some leaseholders are facing.
In addition to this, my Department has consulted on how to best ensure that landlords, freeholders and property managing agents do not receive excessive and opaque buildings insurance commissions at leaseholders’ expense as part of implementing the Leasehold and Freehold Reform Act. We will publish our response to this consultation in due course.
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