Aviva’s standard residential property owners’ insurance will now be available to new customers dealing with combustible cladding issues, provided they have a plan to complete the necessary remediation works within five years and that risk management guidance is followed.
The coverage is being offered to new customers from residents’ associations who are in charge of a single block or complex of flats and need insurance while cladding remediation works are undertaken. The offer is not open to local authority housing and housing associations, for which there are established insurance marketplaces.
Lifting the lid on the move, Aviva noted: “Some residents have seen large premium increases due to the presence of cladding. Aviva is offering cover up to £50 million sum insured per block of flats, for blocks of all heights, available at renewal only.
“New customers will need to have broadly identified the extent of works required and demonstrated that there is a plan in place to secure funding for cladding remediation.”
According to the insurer, its existing policyholders affected by combustible cladding have already benefitted from Aviva’s approach to stable pricing and cover.
For the duration of the remediation process, new customers will be provided stable pricing for the increased fire risk at a sustainable rate. Aviva highlighted that the increased pricing for the presence of combustible cladding will be removed once remediation works are completed.
The proposition is open to all brokers within the insurer’s broker network, and they are encouraged to agree a fee in order to write the business net of commission.
“We have worked hard to design an insurance solution that is fair, sustainable, and minimises the cost to leaseholders,” said interim managing director of commercial lines Nick Major. “Brokers and insurers need to work together to reduce those costs that they control.
“Aviva has taken the first step of opening our buildings insurance proposition to new customers at a fair price. I very much hope that the rest of the industry will join us in supporting residents of buildings with combustible cladding on their journey to making their building’s cladding safe.”