Insurance premiums for buildings with fire safety defects have increased by 300-1,200%. Here's how proper fire safety investment can slash your premiums and protect your asset value.. The Insurance Crisis in Numbers The UK property insurance market has undergone a seismic shift since 2017: Average premium increase for buildings with cladding concerns : 340% Average premium increase for buildings with compartmentation defects : 280% Average premium increase for buildings without EWS1 certification : 420% Buildings unable to obtain insurance at any price : 800+ nationwide Average excess increase : From £2,500 to £50,000 £250,000 "We've seen buildings where the annual insurance premium has gone from £35,000 to £420,000 in three years. Some buildings are paying more in insurance than the total service charge was five years ago." — Insurance Broker, London Market Why Insurers Are Running Scared The Grenfell Effect The total cost of Grenfell related claims is estimated at £1.2 billion, making it the most expensive single building fire loss in UK history. This has fundamentally changed how insurers assess residential building risk. The Cascade of Claims Post Grenfell, insurers faced claims from: Building owners — remediation costs, waking watch, temporary accommodation Leaseholders — loss of value, inability to sell, mortgage difficulties Professional indemnity — claims against assessors, designers, contractors Product liability — claims against cladding and insulation manufacturers The Data Gap Many buildings cannot demonstrate the fire performance of their external walls, compartmentation, or fire doors. Without data, insurers assume the worst. How Fire Safety Investment Reduces Premiums EWS1 Certification Buildings with a clean EWS1 form (A1 rating) typically see: Premium reductions of 40 60% compared to uncertified buildings Standard excess levels restored Full market access (multiple insurer quotes) Sprinkler Installation Installing a sprinkler system in a residential building typically results in: 20 30% premium reduction for new installations Additional 10 15% if system is third party maintained Reduced excess to standard levels Business interruption coverage more readily available Compartmentation Survey and Remediation Demonstrating compartmentation integrity through survey and remediation: 15 25% premium reduction after survey and remediation completion Certification accepted by all major insurers Reduced risk of claim rejection for future fire incidents Fire Door Replacement Programme Replacing all fire doors with third party certified products: 10 15% premium reduction Documented compliance with Fire Safety Act 2021 Reduced maintenance costs with modern self closing mechanisms The ROI of Fire Safety Case Study: 22 Storey Residential Tower, East London Insurance premium before remediation : £380,000/year Remediation investment : £1.8 million (cladding + compartmentation + fire doors) Insurance premium after remediation : £95,000/year Annual saving : £285,000 Payback period : 6.3 years Property value increase : Estimated £3.2 million across all flats Case Study: 8 Storey Mixed Use Building, Manchester Insurance premium before remediation : £145,000/year Remediation investment : £620,000 (compartmentation + sprinklers) Insurance premium after remediation : £52,000/year Annual saving : £93,000 Payback period : 6.7 years Additional benefit : Business interruption coverage restored What Insurers Want to See 1. Current fire risk assessment by a competent third party assessor 2. EWS1 form (for buildings with any cladding concerns) 3. Compartmentation survey (Type 2 minimum for buildings over 18m) 4. Fire door inspection records (quarterly for common areas, annual for flat doors) 5. Active fire protection maintenance records (alarm, sprinklers, AOVs, dry risers) 6. Golden Thread — digital building information system 7. Safety Case Report — for higher risk buildings Magnus Opifex Insurance Support Services Insurance focused fire risk assessments — reports formatted for insurer submission EWS1 assessments — by RICS registered assessors Compartmentation surveys — with insurer accepted certification Remediation project management — delivering measurable risk reduction Broker liaison — direct technical dialogue with your insurance broker and underwriter Don't let fire safety failures bankrupt your building's finances. Contact us for an insurance focused fire safety review.