Building 3

Fire Safety Reinsurance Facility Set Up to Increase Insurance Support

Buildings with combustible cladding and other fire safety issues seeking insurance may now qualify for a new scheme from 1st April made possible with new reinsurance support.

Running for between three and five years, the Fire Safety Reinsurance Facility has been set up by (re)insurance broker McGill and Partners with support from the Association of Insurance Brokers (ABI) and the British Insurance Brokers’ Association. The facility aims to increase support for existing insurance firms and encourage other in the market to provide cover.

The move comes following the Grenfell tragedy, and the limit of risk and cover insurers are able to provide to buildings similar to Grenfell – prior to this facility brokers, freeholders, and managing agents may have had to source “layered” insurance, spreading the cost of insurance between multiple insurers to ensure their building is covered.

Insurers Allianz, Aviva, AXA, RSA, and Zurich will be the first to look to enter buildings currently awaiting remediation work when their insurance come up for renewal, but leaseholders can begin contacting those who arrange their current cover to see if they can be added into the facility.

Further Reading

Facebook
Twitter
LinkedIn
Email
Print

Comments are closed.