Leaseholder insurance premium information 2025/26

The building insurance premium for leaseholders increased by 19% in 2025/26.

This page explains why, and provides more information about the increase.

Why the premium has increased by 19%

Our insurer has advised us that the 19% increase in building insurance premiums reflects a combination of factors, including:

  • Rising costs of materials and labour
  • Increased frequency and value of claims
  • Market-wide inflation in insurance premiums
  • Delays in claim settlements impacting overall risk assessments

What the building insurance covers

The building insurance covers:

  • Structural damage to the building - walls, roof, foundations
  • Communal areas
  • Fixtures and fittings originally provided

It does not cover contents inside individual flats nor for loss of rent if the property is sub let. You can read a full policy schedule

How the increase affects your service charge

The building insurance premium is included in your annual service charge. The 19% increase will be reflected in your next service charge bill.

Our Property Accounts team will provide a breakdown of the updated charges once finalised. Contact Property Accounts directly if you have any further questions on service charges.

Which leaseholders this applies to

The increase applies to all leaseholders within the borough.

It is not specific to individual properties, however different properties may see different rises and this is due to the risk rate applied by our insurer to the property.

The insurance provider and policy

Full details of the insurance provider and policy are are available at leaseholder insurance policy details.

Our consideration of alternative quotes

We regularly review the market via a formal tender process and seek competitive quotes to ensure value for money. 

The current provider was selected based on a combination of cost, coverage, and service reliability. Not all insurers are willing to offer cover for such a large portfolio and only specialist providers do so.

Why leaseholders can't choose their own provider

As the freeholder, we arrange the building insurance for the entire portfolio of properties across the borough.

Individual leaseholders cannot opt out or arrange separate cover.

How you will be billed for the increase

The increase will be included in your annual service charge invoice. If you pay monthly, the adjustment will be spread across your payments.

Property Accounts will confirm the exact amount and billing schedule in due course.

Claims history for your building

We can provide a summary of claims made under the building insurance policy for your block over recent years. Contact us with your address and we will respond with the relevant information.

Why leaseholders pay for issues caused by delayed maintenance or council actions

We understand your concerns. Insurance premiums are influenced by overall claims history and risk assessments.

We are reviewing internal processes to ensure timely maintenance and to reduce future claims. However, the maintenance of the properties is not the responsibility of the Insurance Service, it is the responsibility of the Housing Service along with other key stakeholders.

If you would like to discuss any maintenance aspects, contact your estate manager directly. Items such as maintenance are not related to buildings insurance, but may be related to public liability insurance instead and are not part of this increase.