Progress in sight on cutting building insurance costs for leaseholders

Jon speaking
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Progress in sight on cutting building insurance costs for leaseholders

Jon Cruddas MP has welcomed news that at last action is being taken on the scandalously high building insurance costs that have been forced on leaseholders and shared owners. Jon has mounted a campaign on behalf of leaseholders of apartments in Dagenham and Rainham to cut the premiums being charged by insurance companies and then recharged by the buildings owners to leaseholders in inflated service charges.

Jon commented “When this problem first came to my attention I made direct representations to the Housing Minister. I had the feeling, that for whatever reason, this issue was being kicked into the long grass.

That really wasn’t good enough. Lots of families in Dagenham and Rainham who are leaseholders or shared owners, already struggling with high mortgage repayments and the general cost of living, are being pushed close to the financial brink with massively increasing service charges partly driven by building insurance costs.

I pursued the issue with the Minister in December and received a more encouraging response. I have now seen the advice from the Department of Levelling Up, Housing and Communities to the insurance industry in which it is stated that insurers are expected to ensure that premiums are priced fairly and appropriate to the level of risk, this is in the context of some facing a 400% hike in premiums.”

Margaret Mullane said “I have been trying to provide advice and support for so many leaseholder families in Dagenham and Rainham due to what looks like blatant profiteering by some insurance companies.

Jon has done a great piece of work on highlighting this issue and getting the Government to act. We now have to make sure that this is followed through by insurers and should they fail to do so I would be asking the Financial Conduct Authority to intervene.”