News

We let leaseholders and shared owners know about their estimated building insurance cost for the year within their rent and service charge booklet. We send this to them each February.

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

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

Leaseholders and shared owners will be sent a summary of their 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 their home.

We’ll send it to them on behalf of the insurance company by email or post and they 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 their lease. This is paid for through their 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 leaseholder and shared ownership home.

The insurers will consider different factors, which include:

• the size of the property (. e.g. bedrooms and number of other rooms)
• height of the building
• where they live
• level of flood risk
• type and age of the 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 the property 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 explained above. These stipulate insurers must provide costs and a summary of cover to all leaseholders and shared owners.

When will leaseholders and shared owners know how much their buildings insurance is?

They’ll receive their booklet in February, which will set out estimate building insurance costs as we don’t renew our policy until April. But we’ll send 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 customers have any questions, that they wait until they’ve received their policy summary before getting in touch with us.

Why is building insurance needed?

While customers are responsible for arranging their own contents insurance, it’s our responsibility to arrange building insurance for the homes we manage.

This makes sure that our investment in our homes is secure and we have enough insurance cover to repair, or even rebuild, them should something happen.

What if customers can’t afford the payment?

If customers think they will struggle to make the payments once they’ve received their policy in May 2025, please encourage them to get in touch with their Income Officer, who will talk through the options available.

They can contact us in the following ways:

• email: payments@a2dominion.co.uk
• fill out our online form
• use our Live Chat service available on our website
• call us on 0800 432 0077.

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 A2Dominion?

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 leaseholders and shared owners pay match the amount on the insurance summary?

There are 3 types of insurance, which is included in the premiums for leaseholders and shared owners and paid for through their 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)

Leaseholders and shared owners will 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 premiums as a separate cost. So, we’re letting leaseholders and shared owners know that when they receive their policy from Zurich Municipal it won’t include the cost of Public Liability Insurance. Therefore, the total amount paid through 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 leaseholders and shared owners receive their estimate rent and service charge booklet.