Buildings Insurance Renewal Impossibly High – From £350k to £500k

Buildings Insurance Renewal Impossibly High – From £350k to £500k

15:26 PM, 1st August 2022, About 2 weeks ago 6

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I am a director of a Right to Manage (RTM) for a development with 93 units. Our buildings insurance renewal is due on Monday and, true to form, the renewal premium has only just come in.

It has gone from £350,000 to £500,000, with the broker claiming that the uplift is due to the re-build cost increase and that no one else will quote, due to remediation (which has been approved by Building Safety Fund) but not yet scheduled.

Insurance is sourced through the Lloyds Panel and has several insurers taking a portion of the risk. We have installed new fire alarms and now have positive fire safety reports, but that seems to make no difference.

The broker will make over £39,000 in commission!

What we need is an insurer to re-assess the risk, instead of simply renewing the existing layered policies. However, it seems that the insurance market is reluctant to do this and therefore, there is no alternative quote.

This leaves us with the prospect of having NO buildings insurance, as the premiums are just unaffordable.

Any ideas????

Richard



Comments

Laura Delow

17:16 PM, 1st August 2022, About 2 weeks ago

I experienced a similar problem with a block we RTM albeit not the size of yours. I eventually took it away from the big boy brokers who are less hungry to work hard finding a suitable solution & succeeded through a much smaller Broker who for the last 3years has saved us a fortune & who found an insurer who improved on the T&C's.
Joseph Silberstein,
Protect & Save Insurance,
1 St Andrews Mews,
London, N16 5HR
Contact Number: 0207 101 3539
Mobile Number: 0782 791 7029
E-mail: info@protect-save.co.uk

Helen

17:20 PM, 1st August 2022, About 2 weeks ago

I have found that all insurers are trying to increase the premiums by scaring us into thinking our blocks are not adequately covered. Then they offer a survey for around £500 to check it.
I have upped my property values without forking out for the surveys and shopped around for premiums.
I have found consistently that Deacon and Lansdown have offered very competitive quotes on Landlord Insurance.

Mike

17:36 PM, 1st August 2022, About 2 weeks ago

Insurance companies are a rip off, scandalous, just don't insure for one whole year, no one is going to die.

I do not insure any of my properties, as I can underwrite them myself.

Gennie Nash

17:58 PM, 1st August 2022, About 2 weeks ago

I think that’s a normal increase at the moment. Ours went up 33.3% this year (buildings Insurance) so assume it’s across the board. Outrageous.

Colin Dartnell

20:03 PM, 1st August 2022, About 2 weeks ago

That is over £5300 per unit, are they large and expensive? My increase is about 10%, average is £280 per unit per annum including loss of rent, not all in one block some houses and some flats including 2 small blocks. I have other properties under different insurers but all are similar premiums.
It sounds like large blocks are a different ball game.

Dylan Morris

9:49 AM, 2nd August 2022, About 2 weeks ago

I have two rental apartments on a development of 95 units (all small two bed units nothing large) comprising of 7 blocks. Annual insurance premium for the whole site increased last year from £25k to £29k. That’s around £300 per flat. I’m struggling to understand why your premium is half a million pounds ?

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