13 February 2025
The Leasehold Advisory Service (LEASE) is committed to addressing the challenges leaseholders face, and our inaugural Buildings Insurance Survey was an important first step in gathering critical insights into the rising costs of buildings insurance for multi-occupancy properties.
While the survey has provided some valuable findings, we acknowledge there were areas where we are not able to draw robust conclusions. This reflects both the complexity of the issue and the fact that this was our first survey of its kind. We remain committed to improving the process for future iterations and ensuring our work continues to serve leaseholders effectively.
It’s important to note that this survey only reflects the views of the people who responded. It does not represent the experiences of all residents affected by building insurance costs or all those going through remediation. The results help us understand key issues, but they cannot be applied to every leaseholder’s situation.
Key Findings from the Survey
Insurance Costs Have Risen Sharply
Data from the survey suggests that insurance costs have increased since 2017, with many of the respondents reporting premium hikes of over 40%, and in some cases, exceeding 100%.
Please contact LEASE before including these findings in presentations/further articles or mentioning them more widely to keep us informed of our article’s reach. We recommend that you present the findings with the appropriate caveats alongside – we can assist you on incorporating these into documents.
Low-Rise Buildings Show Trends
Contrary to our expectations, the findings suggest that rising premiums are concentrated among low-rise buildings (2 to 5 floors), although the small sample size for high-rise buildings limits our ability to make meaningful comparisons.
Limited Access to Information
A recurring theme from respondents was the lack of access to essential insurance details. Most participants were residents not directly responsible for arranging their building’s insurance, making it challenging for them to provide detailed answers about premiums and coverage. Given leaseholders’ limited involvement, we will take forward this learning in future surveys to improve data collection.
The survey question explicitly asked: “Are you responsible for arranging insurance for multiple buildings? Usually, this only applies if you are a professional managing agent. If you are a leaseholder, then please select No below.” This reinforces that the majority of respondents were not in a position to provide detailed policy information.
Reflections and Areas for Improvement
We had hoped the survey would provide deeper insights into the impact of the Fire Safety Reinsurance Facility on insurance premiums and coverage. However, the modest number of respondents able to provide comprehensive data means some areas remain unclear.
Looking Ahead
This survey represents an important milestone for LEASE and our efforts to better understand and advocate for leaseholders. While there is much more to learn, the findings underscore the importance of ensuring that leaseholders have better access to insurance information and that the rising costs of buildings insurance are addressed at a policy level.
We thank all respondents and stakeholders who contributed to this survey and look forward to building on this foundation to drive meaningful change.
