As part of its building safety efforts, the government will be working towards a state-backed indemnity scheme for qualified professionals who are unable to obtain professional indemnity insurance for the completion of EWS1 (external wall fire review) forms – a move welcomed by the British Insurance Brokers’ Association (BIBA).
The goal, according to the government, is to reduce the need for EWS1 forms, thus preventing leaseholders from facing delays and allowing homes to be sold, bought, or re-mortgaged again. Details on the indemnity scheme, which will be designed in collaboration with industry, will be announced in the coming weeks.
Commenting on the initiative, BIBA said it “has been working closely with MHCLG (Ministry of Housing Communities and Local Government) on the challenges of insurance for cladded buildings and liability attaching to the EWS1 form is a key part of this.”
The trade body – whose 2021 Manifesto pointed to the need to create a professional indemnity solution – went on to state: “[The] ministerial announcement is a very positive development and we will continue to work with MHCLG to help deliver a targeted, state-backed indemnity scheme to address the continuing insurance challenges in this area.”
The indemnity scheme is part of the five-point plan unveiled by Housing Secretary Robert Jenrick MP, who confirmed to the House of Commons that the government will fully fund the cost of replacing unsafe cladding for all leaseholders in residential buildings 18 metres and over in England.
Lower-rise buildings will gain protection from cladding removal costs as well, with a new scheme offered to properties between 11 and 18 metres.
The announced measures, which also include a proposed developer levy, are all part of efforts to address the building industry failings that came to light following the Grenfell Tower tragedy in 2017.
