2023/2024 saw the fastest start to the UK storm season, with 7 storms named by the Met Office from September (Storm Agnes) to December (Storm Gerrit) and the arrival of Storm Kathleen in April 2024 saw the Met Office name an 11th storm of the season for only the second time.
Alongside these storms, Scotland also experienced above average rainfall through the winter period. These weather conditions have resulted in damage to buildings, disruptive water ingress occurring and has consequently increased demand for, and the difficulty of, effecting exterior, high-level repairs and maintenance.
It is therefore unsurprising that the Association of British Insurers (ABI) report 2023 as their highest claims payout year, with £2.55 billon paid for home insurance claims, a 10% increase on 2022 levels.
This includes £153 million from burst pipes and other damage caused by cold weather in early 2023, with costs from reinstatement of water damage generally increasing by 20%, a trend which is recognisable from increased repair and maintenance costs generally.
The ABI also report the value of other claims increasing and many of our customers will have experienced increases in premiums for motor insurance, contents insurance, health insurance and other cover.
In recent years, economic uncertainty, the impact of persistently high rates of Escape of Water claims, continuing concern around flood risks and building construction has seen the market of insurers offering insurance for residential, multi-occupancy buildings reduce. Challenging times continue in this regard, as evidenced around the property factoring market in Scotland, where premium rate increases, increased policy excesses and restrictions to cover are ongoing.
Despite this, HPMS have been delighted that the vast majority of our customers have not seen their insurance premium rate increase since 2015.
For 2024-2025, despite these significant pressures, we are delighted that AON have successfully negotiated renewal of the vast majority of block policies with a premium rate decrease of 5%.
With a 5% reduction also achieved last year, this gives our customers confidence that HPMS continue to prioritise their needs and can secure an excellent outcome for our customers through these very difficult and challenging times.
If you are looking to find out more about Common Buildings Insurance in general you can visit the Under One Roof Website, where you will find independent information and advice on this and many other important subjects affecting flat-owners in Scotland.
You can check on the status of your insurance by contacting your Property Factoring Team, and find more information via your My H&P Web Portal and App. Your login details can be found on your common charges invoices or on the last letter we sent you in the post or by e-mail.
Don’t have a Common Insurance Policy?
One of the advantages of having HPMS place buildings insurance cover on your behalf is the option of arranging a Common Policy, which covers all flats or apartments in your building.
By insuring via a Common Policy you can be assured that all flats are covered, subject to a suitable Sum Insured, instead of checking each year that individual homeowners have taken suitable cover for their flat and the common parts of your building, and that these policies remain in force at all times.
Furthermore, if you insure your building separately not only will you will likely require to pay multiple excesses for any claim, which may exceed any premium savings, if any homeowner is uninsured it can become extremely difficult to progress essential repairs.
If you are unsure how your insurance is currently arranged, if you have been experiencing any problems or if you would just like some more information on how we can help you arrange your insurance please contact your local Property Factoring Team who will be pleased to assist you.
