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Building insurance 2025/26 – information for shared ownership and leasehold customers.

24 January 2025 - Services
As a housing association, we’re responsible for calculating building insurance for the homes we manage.

If you’re a leaseholder or shared owner, we let you know your estimated building insurance cost for the year within your rent and service charge booklet. We send this to you each February.

Every April, we renew our buildings insurance policy and, after doing this, we’re able to confirm your actual building insurance costs for the year. We usually send this to you each Autumn within your service charge actuals letter.

There are some changes happening this year that we want to let you know about.

You’ll be sent a summary of your policy

This year, for the first time, leaseholders and shared owners will receive a summary of their building insurance policy.

This will explain the cost of insurance for your home.

We’ll send it to you on behalf of the insurance company by email or post and you can expect to receive it by the end of May 2025.

In the past, a summary of the building insurance policy was made available on our website. However, this didn’t include details of costs and was sent out to customers only if requested.

This change is in line with the new measures put in place by the Financial Conduct Authority which aims to make it easier for leaseholders and shared owners to understand their insurance and what they’re paying for.

Changes to how we charge building insurance premiums

A2Dominion arranges buildings insurance for the majority of our shared owners and leaseholders as a condition of your lease. This is paid for through your service charges each year.

In the past we shared building insurance costs equally between leaseholders and shared owners, with social housing tenants paying their contribution as part of their rent.

This approach, taken by many housing associations across the sector, helped to keep costs reasonable and provided better value for money.

We’re now arranging building insurance premiums in a different way. From this year, the insurance company will calculate the costs for your home. They will consider different factors.

These include:

·        the size of your home (. e.g. bedrooms and number of other rooms)

·        height of your building

·        where you live

·        level of flood risk

·        type and age of your building

·        insurance claims made against the entire policy for all buildings.

For some leaseholders and shared owners, estimates will decrease. And for others, who live in a building which is considered high risk or has a high rebuild value, (the cost to completely rebuild your home should something happen to it) costs may rise.

A2Dominion made the decision to apportion building insurance costs in this way following new measures introduced by the Financial Conduct Authority, which we’ve mentioned above. These stipulate insurers must provide costs and a summary of cover to all leaseholders and shared owners.

When will I know how much my buildings insurance is?

You’ll receive your booklet in February, which will set out estimate costs of your building insurance, as we don’t renew our policy until April. But, as mentioned above, we’ll send your actual building insurance costs in May on behalf of the insurer.

We won’t be able to confirm actual costs before May, so we ask that if you have any questions, please wait until you’ve received your policy summary before getting in touch with us.

Why do I need building insurance?

While you are responsible for arranging your own contents insurance, it’s our responsibility to arrange building insurance for your home. This makes sure that our investment in your home is secure and that we have enough insurance cover to repair, or even rebuild, your home should something happen to it.

What if I can’t afford the payment?

If you think you will struggle to make the payments once you’ve received your policy in May 2025, please get in touch with your Income Officer. They can provide advice on your situation and talk through the different options available.

You can get in touch in the following ways:

What is the Financial Conduct Agency?

The Financial Conduct Authority is an independent regulatory body that oversees the financial services industry in the UK. Visit the Financial Conduct Authority’s website for more information.

Why are building insurance costs reducing for some buildings?

In the past, before insurance costs rises, we shared building insurance costs equally between leaseholders and shared owners, with social housing tenants paying their contribution as part of their rent. This approach, taken by many housing associations across the sector, helped to keep costs reasonable and provided better value for money.

This year, A2Dominion made the decision to apportion building insurance costs in a different way, which we’ve outlined above. This follows new measures introduced by the Financial Conduct Authority.

Why have building insurance costs increased for some buildings?

Costs for building insurance have increased due to different factors. The number of insurers who provide cover for the social housing market has changed significantly, with fewer insurers willing to cover buildings. And those that are, have increased their rates. This has reduced competition and caused higher premiums.

Other factors include an increased demand for materials and labour and new building safety requirements which were introduced last year by the government.

Who provides building insurance for where I live?

Our main provider is Zurich Municipal, but there are a small number of buildings where the building insurance is arranged by a different company.

If this is the case, we’ve written to customers to let them know.

Does A2Dominion make a profit from service charges?

We want to reassure you that as a not-for-profit housing association, we do not make any profit from service charges and always seek best value for money on behalf of our customers.

Does A2Dominion pay or receive commission from an insurer or broker?

No. As a not-for-profit housing association, we don’t pay or receive commission from the insurance companies or brokers.

Will the amount I pay match the amount on the insurance summary?

There are 3 types of insurance, which is included in your premium, and paid for through your service charge.

These are:

  • Buildings Insurance

  • Public Liability Insurance

  • Terrorism Insurance (this is covered by Weald Insurance, and you’ll receive a policy summary about this separately)

You’ll receive separate summaries for Buildings Insurance and Terrorism Insurance, but Zurich Municipal who is our main insurer, is not required to provide one for Public Liability Insurance.

However, Public Liability Insurance is covered in your premium as a separate cost. So please be aware that when you receive your policy from Zurich Municipal it won’t include the cost of Public Liability Insurance. Therefore, the total amount you pay through your service charge will be slightly more than the buildings and terrorism costs when added together.

Please also note that the cost may change, as we don’t renew our insurance until April 2025, which is after you receive your estimate rent and service charge booklet.