Industry imposed increase of at least 25% for buildings insurance premium?

OpolE

"Please note a significant increase in buildings insurance premium which is an industry imposed increase of at least 25% resulting from the huge volume of claims for escape of water and as a result of the Grenfell fire.

Does anyone feel as if we are paying extra for corruption. The Grenfell fire. Are they being serious! I live in a 2 level block with just brick on the outside. !!!!!!

JamieJ89

I work in Insurance, specifically dealing with Residential property owners insurance and the cost of this class of business has gone up massively over the past 12 months. Theres a number of reasons as to why, and Grenfell specifically is one of these - Grenfell has an impact on insurers' accepting the risk - every insurer is VERY weary over buildings with cladding (and rightly so) meaning the pool of insurers willing to insure the building reduces = prices as a result go up.

OpolE

JamieJ89 said:

I work in Insurance, specifically dealing with Residential property owners insurance and the cost of this class of business has gone up massively over the past 12 months. Theres a number of reasons as to why, and Grenfell specifically is one of these - Grenfell has an impact on insurers' accepting the risk - every insurer is VERY weary over buildings with cladding (and rightly so) meaning the pool of insurers willing to insure the building reduces = prices as a result go up.

Hi Jamie. I see. Do you know what the "claims for escape of water" is or would that be something actually local to my blocks?

eddddy

OpolE said:

Hi Jamie. I see. Do you know what the "claims for escape of water" is or would that be something actually local to my blocks?

"Claims for escape of water" means when there is a water leak in a flat that causes damage. Often with a blocks of flats, the water will seep through and damage flats below as well. So all the affected flat owners make an insurance claim to repair the damage.


There may have been claims in your block specifically which would push up your premium, or the insurers might be saying there is an increase in those types of claims generally. 

OpolE

Ah !!!!!!. So If someone's a derp. We all have to pay derp money. Got it!

980233

OpolE said:

Ah !!!!!!. So If someone's a derp. We all have to pay derp money. Got it!

That's one of the perils of living in a flat unfortunately.

JamieJ89

Yep as above, residential blocks always have escape of water claims and being on a block policy sadly all residents are affected.

canaldumidi

Are you the freeholder or leaseholder? Are responsible for obtaining the insurance (eg freeholder) in which case if your current insurer is saying this, shop around!

Or are you a leaseholder being asked to contribute to the freeholder, with this being the explanation passed on?

OpolE

canaldumidi said:

Are you the freeholder or leaseholder? Are responsible for obtaining the insurance (eg freeholder) in which case if your current insurer is saying this, shop around!

Or are you a leaseholder being asked to contribute to the freeholder, with this being the explanation passed on?

Share of freehold. 4.16% 

NameUnavailable

Has whoever organises the insurance used a broker? They should have obtained a few quotes for comparison. If there isn't a broker then I would be asking for the 'management co' to obtain more quotes.

Insurers don't act in line with each other, that would be a cartel, although it's quite possible that premiums have increased generally given the increased risk perception of some blocks of flats (although in reality the number of fires and fire claims from flats is tiny compared to houses).