Why are insurers concerned with fire risk?

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The increased scale and potential for rapid fire spread is of major concern. As we see from fires in “high rise” buildings across the world it is particularly problematical for fire authorities to fight these fires effectively. Insurers will have expected to lose c.35% of a compliant building in the event of a fire, but where defects are present this is now estimated at much closer to 100%. With the likelihood of an expensive claim now increased, the cost to insure will certainly rise and in many cases insurance companies will be reluctant to provide any cover.

There has been focus on many different types of cladding such as ACM (Aluminium Composite Material) and HPL (High Pressure Laminate) which have grabbed many of the headlines in the press. Just as crucial is the type and combustibility of the insulation that is being used and the compartmentation of areas behind the cladding. Large cavities behind the cladding and ineffective fire barriers can allow fire to spread quickly and increase the scale of loss.