At Lansdown Insurance Brokers, we’re committed to keeping you up to date with important industry changes. The government’s recent proposal to introduce a fair and transparent insurance fee structure for leaseholders is a significant development. This initiative aims to cap excessive charges by freeholders and managing agents, providing better financial protection for residents of multi-occupancy buildings.
Under the proposed changes, these fees would need to be clearly outlined and reasonable, ensuring that leaseholders are not overcharged for insurance arrangements that are often part of their service charges.
The consultation suggests that insurance fees should only be charged when they directly relate to the management of the building, with any associated costs justified and transparent to all parties. For instance, property managers could charge reasonable fees related to the administration of insurance, but they could not charge for services unrelated to the management of the policy.
This initiative is part of a broader effort by the government to ensure fair treatment of tenants and leaseholders while addressing concerns about the rising cost of living and excessive fees that some property owners may impose.
Our blog, Multi-Occupancy Residential Buildings Insurance: Better Protection for Leaseholders, delves into a similar set of changes made by the Financial Conduct Authority (FCA) in January 2024 to address concerns with the multi-occupancy buildings insurance market.
About Lansdown
Lansdown Insurance Brokers are specialists in Block of Flats Insurance, Landlord Insurance and Business Insurance.
We are able to provide flexible policies to suit individual client needs and provide advice on what cover is needed. For more information call the team on 01242 524498.