The insurance clause within leases requires South Lakes Housing to insure and keep insured the building against usual risks with an insurance office of repute, and to have the interest of the tenant and their mortgagee noted on the policy.
Buildings insurance for homeowners
In most instances the lease agreements state that South Lakes Housing are required to insure the buildings that leaseholders and shared owners live in and you pay us for providing this cover.
Leaseholders are provided with the following documents on an annual basis.
The cost of buildings insurance increased nationwide in 2020. This increase was due to several factors including:
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An annual service charge letter
This sets out the cost and requirement to pay for buildings insurance.
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A document entitled ‘buildings insurance information - key information for leaseholders’
This contains a summary and details of the insurance policy, premium information, services provided by the broker and remuneration information, and any conflicts of interest.
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A document called ‘residential buildings insurance cover summary
This summarises the policy and the cover that is provided in respect of loss or damage caused to the building, reporting a claim, and details of the complaints procedure.
It is your responsibility to contact the Insurer if you wish to make a claim.
Leaseholders are advised to take out their own home contents insurance policies through a renowned insurance broker, as contents are not covered within the buildings insurance policy which South Lakes Housing arranges.
Why might the cost of my building insurance have gone up in my service charge statement?
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The impact of the coronavirus
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A reduction in insurer capacity, which means it’s been harder and more expensive to find insurance
The Regulator of Social Housing have acknowledged in their 2024 Sector Risk Profile report that “there is a limited range of insurers in the sector and some landlords have reported difficulties in obtaining multiple or even any quotes”.
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Increased risks associated with things like building safety, flooding and climate change risks.
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Rising inflation
This has impacted on increased rebuild valuations, which is used to calculate the value of the buildings and its reinstatement costs.
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Unsustainable loss ratios – property insurance premiums have been artificially low for many years.
As a result, insurers combined operating ratios often exceed 100%, meaning the cost of providing property cover has been higher for insurers than the premium received.
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Rising reinsurance costs.
