Leaseholder insurance premium information 2026/27

Frequently asked questions about the leaseholder insurance premium for 2026/27.

Questions

Answers

Why has my insurance charge increased?

Costs associated with insurance claims have outstripped general inflation for several years. Our insurers have changed their risk profile to take account of these increases, resulting in this increase in your cost of insurance.

The insurer provided the following explanation for these increases:

  • Price inflation on material parts – increasing material costs means claims requiring these materials will be more expensive (this is further affected by increased waiting times for materials)
  • Availability of materials and parts – increased costs caused by delays and shortages of available materials, coupled with higher transportation costs due to increased fuel prices and the availability and costs of HGV drivers to deliver materials
  • Contractor availability – there are less contractors in general and those that are in the market are declining insurance work and favouring more lucrative private work, more often
  • Claim inflation – claim expenses are rising quicker than inflation due to the background international economic conditions
  • Delayed claim settlements – due to quickly increasing material costs, the longer time it takes to settle a claim, the more expensive it becomes

Why is my increase different from the 19% increase mentioned previously?

This average increase estimate related to the main body of leaseholders. You were part of a separate group of leaseholders who were risk rated differently, which previously resulted in a lower average cost of insurance. This is no longer the case, meaning your increase is different but the overall cost to you is lower than if the previous arrangement had continued. Your policy terms remain unchanged.

Can I have a copy of the insurance policy?

Yes, contact the Property Accounts team if you would like a copy. Email paccounts@wandsworth.gov.uk.

Please note that the policy is with the Council, with the interests of individual leaseholders and any mortgage providers noted.

Why do leaseholders pay for both insurance and maintenance and why can't I arrange my own insurance or opt out?

We are responsible, under the terms of your lease, for arranging the insurance of your building for its reinstatement value against normal perils (risks and events that could cause harm, loss or destruction). Individual leaseholders cannot opt out or arrange separate buildings insurance for their flat.

Property owners have a responsibility to undertake reasonable maintenance to avoid their insurance cover being invalidated. Such maintenance includes shared areas and the costs of maintaining these are rechargeable under the terms of your lease.

How is my insurance cost calculated?

Your total insurance cost is calculated by dividing the sums insured (the total cost of reinstating or replacing your property) by 1,000 and then multiplying this figure by the premium rate.

Sums insured / 1,000 * the premium rate

The sums insured is shown on your invoice.

These calculations are part of the Council’s accounts and subject to internal and external audit review.

How was the insurer chosen?

The insurance contract was awarded to Zurich Municipal through a competitive procurement process that considered cost, levels of cover, service quality and claims handling arrangements.

Why has the policy structure changed?

There is no change to your cover. In seeking best value, we review the balance of risk that is held internally and externally (via the insurer). Changes to risk acceptance levels can help reduce the cost of insurance to leaseholders, though it is important that appropriate levels of cover are maintained.

How does this year's cost compare to previous years?

The cost of insurance across the housing sector has increased significantly in recent years and the insurers have now reflected this in their costs resulting in significant increases.

Below is an example of the average increase in premiums across all leaseholders:

Year Average cost (£)
2025/26 172.60
2026/27 200.88

Can I see the claims history for my block?

We have a single policy for leaseholder insurance and so individual claims impact the claims history for all properties. It is possible to extract individual block claims history reports, subject to data protection requirements, and this is usually provided when properties are being sold.

However, as we have a single policy for leaseholder insurance, individual claims across the whole portfolio affect the entire claim history. This means that general insurance claims data across the whole property portfolio is usually more meaningful than data relating to individual blocks.

Work is underway to publish general insurance claims data, subject to data protection requirements.

Is a Section 20 consultation required?

Zurich Municipal was appointed as insurance provider from April 2023 to March 2028 following a successful procurement exercise. During the period of this contract your insurance terms have not changed.

Should the terms of your insurance change during the remainder of the current contract with Zurich Municipal, we will consult and communicate with you accordingly.   

What support is available if I am experiencing financial hardship?

There is a wide range of financial help and support available across the borough, provided by Wandsworth Council and voluntary sector partners.

Financial advice is available on our Cost of Living Hub or telephone 020 8871 6000.

If you are a pensioner on a low income, you may be entitled to pension credit. If you are in receipt of Income Support, Job Seekers Allowance or Universal Credit, you may be entitled to assistance from the Department for Work and Pensions with paying your service charges and any major works bills.

Contact the Pension Service for information about Pension Credit. Visit Contact the Pension Service - GOV.UK or call 0800 731 0469.

For information about benefits and financial support, visit Benefits - GOV.UK or call 0800 731 0469.

You can also contact the local office that assesses your benefit claim.

Who can I contact for further information?

If you have any questions about your insurance invoice or service charge bill, contact the Property Accounts team on paccounts@wandsworth.gov.uk, quoting your property address and account reference number.

Up to Leaseholder buildings insurance

Updated: 14/10/2026