Residents of Matilda House in St Katharine’s Way have been told by Tower Hamlets Council that their buildings insurance premiums will almost double and are more than a little angry.
One member of the Leaseholders Association sent LW a copy of their complaint to Tower Hamlets Council asking the Council to explain the reason why their insurance costs have doubled from £145.44 to £302.16 for a one-bedroom flat.
Insurance costs for a three bed flat have risen from £200.85 in 2017/18 with Ocaso to £372.54 in 2018/19 with Zurich.
To make matters worse the Matilda House resident obtained a quote of £110 from Direct Line.
Letter to Tower Hamlets Council
“To whom it may concern,
I am writing to express my astonishment and shock at the proposed increase to the buildings insurance premium from £145.44 to £302.16, as indicated in the letter dated 23 February (which by the way was received by many of the leaseholders here at Matilda House after 27 February).
Although there is a restriction regarding leaseholders proposing possible tenders from other providers, I asked Direct Line for a quote; their quote was £110.46 (including Insurance Premium Tax at the appropriate rate).
This premium reflects an existing customer discount of 20% from £149.32, which undiscounted sum appears to correspond with many of the alternative quotes other leaseholders have acquired from the insurance industry and have provided to you.
You advise that you asked 2 companies to tender. I would like your responses to the following:
- The previous provider, Ocaso, originally provided a 2 year contract with an option for a 3rd year, which was adopted (quite late) in the first half of 2017, after it seems the policy incepted for 2017/18 (we received notice of this in June 2017). When did LBTH first consider alternative providers/put together its tender process?
- When was the tender process commenced? Was this as late as September 2017 when the general notice of long term agreement was provided? And why were only 2 providers asked to tender?
- What is the term of the ‘long term agreement’? Will the premium increase for each year of the term?
- Have Ocaso, Sun Alliance or Lark and previous providers been considered/approached in the tender process?
It appears that consideration of building insurance provision started quite late.
These are my immediate thoughts as an individual. In my capacity as a member of the Leaseholders Association, the Management Council will be considering how best to respond to this affront from LBTH.
I look forward to hearing from you.”
If this was not enough of a problem Matilda House residents have been trying to access £300,000 of their money since 2011.
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