Buildings Insurance, in particular

Buildings Insurance will tend to be the most expensive of the policies. The cost is materially impacted by issues such as claims experience, construction and, in particular, if there is combustible cladding.

1. Rating: To establish a price, insurers will tend to use a rate, applied to the building sum insured, which should represent the estimated rebuild cost.


2. Size of risk: A freeholder, when placing building insurance policies, may have a portfolio with a total rebuild cost in excess of £1 billion. The RTM may be dealing with a property that has a rebuild cost of £20 million. The insurer will, typically, quote a lower rate for the larger portfolio.