Leasehold Properties: Building Insurance
Debate between Baroness Fox of Buckley and Lord Evans of Rainow
Lord Evans of Rainow (Con)
The noble Baroness is right: premiums have increased, on average, threefold for buildings with identified fire safety issues. The FCA, which regulates brokers and insurers, reported in September 2022 that the insurance premiums increased by 187%—that is completely unacceptable. The Government will ban commissions and press insurance brokers to reduce and clarify charges as a matter of priority ahead of reforms coming into force. However, the Government cannot pre-empt the King’s Speech at this moment; later, I will report back to noble Lords.
Baroness Fox of Buckley (Non-Afl)
My Lords, leaseholders are already reporting that these scandalous commissions are being rebadged as fees. Are we absolutely sure that transparency is enough? Finding out how much you are being ripped off by is not necessarily any consolation. Does the Minister recognise that this is baked into leasehold as a system? The Government themselves know that it is scandalous and want to abolish it—why do they not do so?
Lord Evans of Rainow (Con)
I hope that the noble Baroness heard from my previous answers that that is exactly what the Government intend to do.