E&J Estates now has the results of your landlord’s insurance renewal exercise.
You will shortly receive your invoice and insurance certificate for the insurance year commencing on 26th March.
Several months ago, we explained on this website the background to the very difficult market conditions which led to significant premium rises for many homeowners last renewal.
As has been widely commented in the media, this situation is common across the UK, and not unique to your landlord’s insurance programme.
We also set out our strategy this year to try to improve the position.
You can find this information in FAQ’s/Insurance/What is happening with the 2022 insurance renewal?
Your landlord instructed two of the world’s largest insurance brokers to conduct a tender exercise across the whole insurance market, involving nearly 20 insurers. Insurers analysed our portfolio as a whole and were also invited to consider covering individual buildings in isolation.
It is clear from this exercise that insurers continue to be highly reluctant to quote for new business in the residential sector. This is most pronounced with buildings which have one or more of the following features, where pricing and availability of cover is most challenging:
• Cladding and related fire safety problems.
• High buildings sums insured – a high sum insured presents a greater risk.
• Poor claims experience.
• A high flood risk profile.
• Non-standard construction features, eg converted mills/heritage buildings.
We have succeeded in achieving premium savings for many homeowners, since another insurer, Ecclesiastical, has offered more attractive terms for some buildings.
Ecclesiastical was not able to underwrite all of our buildings, and many will continue to be insured by Zurich, our long term insurer. Zurich has generally maintained premium rates at last year’s levels, with some variation on a small number of properties.
No quotations were received from any other insurer.
Each year, insurers adjust building values to allow for changes in construction sector costs. As has again been widely reported, these are rising sharply, and this year the indexation increase is 8%, with a direct impact on premium levels.
We are pleased to have secured savings where possible. However, the news that premiums for many homeowners remain well above historic norms is clearly unwelcome and we are disappointed that a better overall solution has not been achievable.
We and our brokers believe however that every possible avenue to reduce premiums was explored.
There is cause for cautious optimism for future renewals. It is likely that for most buildings, pricing has peaked. By next renewal, remediation of cladding and fire safety defects will either be complete or well underway on higher risk blocks across the country. This should improve insurers’ overall views of the residential block sector and produce some easing of premiums.
Government is also taking a greater interest in the need for insurance to be available at a reasonably affordable cost and is engaging with the insurance industry on the issue.
We will again conduct a full market exercise next renewal.