High Buildings Insurance Excess Warning Signs

Who this is for

Buyers and advisers checking whether insurance terms could create cost risk beyond the annual premium.

Why it matters

Insurance is not just the premium. Excesses, exclusions, claims history and renewal conditions can all change practical risk. A high water-damage or subsidence excess may matter as much as the total charge.

What to check first

• Check the current policy schedule, not just an LPE1 summary.
• Record excesses by claim type, especially escape of water, subsidence, fire and storm.
• Look for exclusions, endorsements and special conditions.
• Compare premium and excess changes against previous years if available.
• Ask how claims are allocated between the block and individual leaseholders.

Red flags in the pack

• Only a premium total supplied with no schedule.
• Very high excess for common claim types.
• Recent major claims with no renewal explanation.
• Fire/building-safety wording affecting policy terms.
• Insurance cost jump not explained in accounts or budget.

Evidence to gather

• Current buildings insurance schedule.
• Insurance invoice or premium allocation statement.
• Claims history or renewal explanation.
• LPE1 insurance replies and policy summary.

Questions to send

• Please provide the full current insurance schedule and excess table.
• Were there material claims in the last three years?
• What caused any recent premium or excess increase?
• How would a high excess be recovered from leaseholders after a claim?

How LeaseLens uses this

LeaseLens pulls insurance schedules into the risk review and flags premium jumps, high excess language and missing schedule pages.

Official context

• LEASE: buildings insurance
• LEASE: service charges

Caution

This is an informational screening guide only. It is not legal advice, does not interpret your lease for you, and does not replace advice from a qualified conveyancer or solicitor.