Exclusive

Cladding Scandal Latest: The 'Firetrap' Homes That Can't Get Fire Insurance

14 September 2020, 08:31 | Updated: 9 October 2020, 15:27

The Albion Works site in Manchester
The Albion Works site in Manchester. Picture: Artisan H2
Rachael Venables

By Rachael Venables

Over the past few weeks on LBC we've been exposing the latest development in the cladding scandal, which has left up to 3 million of you living in 'worthless' flats.

Many are people who can't sell their homes without what's known as EWS1 "External Wall" form, the rest are people whose buildings have failed that form due to dangerous cladding, and now find themselves living in expensive fire-traps.

The latest shocking development, however, is that some of these buildings are so unsafe, they cannot get fire insurance.

Leanne bought her first home, a flat in Albion Works in Manchester three years ago.

Cladding Tower Block Resident Left "Sick With Fear"

Unfortunately for her, and her roughly 100 neighbours, the block has a slew of fire safety problems: ''The wooden rendering on the ends of the building need completely stripping back.

''We have 6 inches of polystyrene insulation around the entire building that is uncompliant, which will mean having all the render taking off the building to take that out.

''We're also aware that our balconies are uncompliant in terms of the wooden structure that's around them, so all of the balconies need completely removing.''

They've already had to pay thousands of pounds per flat for fire wardens and a new alarm system while they wait for all these problems to be fixed.

LBC reporter inundated with people in "unsellable" flats over cladding

But, Leanne says, in an email on the 4th September the residents were told that their building is so dangerous, they cannot get fire insurance.

''Previously to that for a couple of weeks it was completely uninsured for anything.

''So me and my neighbours are absolutely terrified for what this means for us.

''But we're very much aware that if anything were to happen to our building, we would still be expected to pay mortgages, so to go on as if life was normal, but with no property.''

Martin Boyd is Chair of the charity, Leasehold Knowledge Partnership.

He knows of “eight or nine” other buildings in a similar position: ''If the insurers have got that nervous about the building, then there has to be the question, should people be living in it?''

He says that without full insurance, these leaseholder's mortgage agreements will be ‘voided,’ but doesn’t think it's in the banks' interests to foreclose - as flats with cladding are technically all now worth £0.

But, he stresses, if there is a fire, Leanne and her neighbours would have no financial support afterwards.

Now, insurance for buildings with cladding is a real issue at the moment for leaseholders.

Once fire-safety problems are found, many report their premiums rocketing by 3, 4 even ten times what they had before.

As insurers are, understandably, very nervous after Grenfell about backing buildings with such faults.

But this idea of someone’s home being so dangerous, that they cannot get any fire insurance at all, should rightly scare many of us.

Particularly, as we are seeing more and more buildings fail the EWS1 form, and more and more fire safety issues are being found in our country’s high rise housing stock.

Nick Ferrari confronts the Housing Secretary over unsellable homes due to cladding

The building's owners, Artisan H2 told LBCthey employ the services of a professional broker and through the broker became aware that cover for two of the blocks at Albion Works was being removed by the original insurer, NIG.

They said: "This notification was provided very close to the renewal date. We are informed that the insurance market has hardened significantly in recent times and getting cover of any description has been extremely difficult. We worked hard, alongside our Managing Agent, to obtain cover and after numerous discussions, we were able to obtain cover, but without fire cover.

"We are committed to ensuring that the buildings are fully insured and we continue in daily discussions with a number of brokers in order to obtain full cover as quickly as possible.

"We appreciate the concern that this situation is causing, indeed as leaseholders of properties within the blocks we share the concern of our follow leaseholders. We are working day and night to obtain the best possible cover. We will keep all parties updated as soon as there is any movement on the insurance position."

More Nick Ferrari

See more More Nick Ferrari

Nick Ferrari takes to the streets of the US to ask Americans: 'Can you identify these British politicians?'

Nick Ferrari takes to the streets of the US to ask Americans: 'Can you identify these British politicians?'

Why did Trump win and why did Harris lose? Nick Ferrari asks American voters

Why did Trump win and Harris lose? Nick Ferrari asks American voters in the wake of US election results

Nick Ferrari attends his first Trump rally in Pennsylvania as he meets the crowd in 'the poorest city in the United States'

Nick Ferrari attends his first Trump rally in Pennsylvania as he meets the crowd in 'the poorest city in the US'

Home Secretary Yvette Cooper has said she strongly disagrees with a tweet that a backbench MP appeared to have reposted saying Kemi Badenoch represents "white supremacy in blackface".

Cooper condemns 'appalling' tweet shared by Dawn Butler labelling Kemi Badenoch 'white supremacy in blackface'

Exclusive
Cumberland County: Where the US election could be won or lost

Nick Ferrari travels to America for the US Election: Watch the best bits here

Exclusive
The Chancellor was speaking to LBC's Nick Ferrari at Breakfast

Chancellor ‘doesn’t know’ salary of new chairman tasked with ensuring government ‘value for money'

Transparency over Southport stabbings key to avoiding 'deep public mistrust in the criminal justice system', says Jenrick

Transparency over Southport stabbings key to avoiding 'deep public mistrust' in criminal justice system, says Jenrick

Exclusive
The government has introduced its football governance bill.

'We're on the same side': Minister denies feud with Premier League over Football Governance Bill

Exclusive
Protest sign reading Danger water pollution, this water is polluted with raw sewage. The responsible party is Thames Water. River Wey, Guildford, UK

Government warns demand for water could outstrip supply as they launch review into 'broken' sector

Nick Ferrari.

'He'll look over his shoulder for the rest of his life': Concern for Martyn Blake's privacy long overdue

Exclusive
'No one gutsy enough to address this': Mylene Klass calls on government to introduce paid miscarriage leave.

Government not 'gutsy' enough to implement paid miscarriage leave claims Myleene Klass

Exclusive
David Cameron speaks to LBC

David Cameron calls for UK to sanction two Israeli ministers as change on arms embargo 'didn't satisfy anybody'

'I wouldn't do it again': Jenrick suggests regret for painting over murals at children’s asylum centre.

'I wouldn't do it again': Robert Jenrick says he regrets ordering workers to paint over murals at children’s asylum centre

Exclusive
Where did all the fish go? Feargal Sharkey uncovers dangerous blue-green algae plaguing River Wye

Where did all the fish go? Feargal Sharkey uncovers dangerous blue-green algae plaguing River Wye

UK troops in Cyprus 'ready to act' says defence secretary noting forces already play 'important' role in preventing escalation

UK troops in Cyprus 'ready to act' with forces playing an 'important' role in preventing escalation

Exclusive
LBC has uncovered levels of E Coli in Britain’s rivers over fifty times higher than levels recommended by the Environment Agency, in the latest edition of Feargal on Friday.

Feargal Sharkey exposes dangerous levels of E. coli in British rivers