Frequently asked questions
We have reassessed the reinstatement values of all our residential buildings for the purpose of insurance. This means that the sum insured, which is what the premium is based on, may have changed significantly from previous years.
The reinstatement value of your property is shown on your invoice and your insurance certificate as "sum insured".
Our insurance broker recommended we carry out a reassessment of all its reinstatement values for the April 2025 renewal, in line with guidance from the Royal Institute of Chartered Surveyors.
Reinstatement values were last reviewed in 2021 through a desktop exercise carried out by Marsh surveyors using the property information available at that time.
In previous years we increased reinstatement values by inflation each year, so the reinstatement values were falling out of line with the actual values.
The reinstatement value is the cost of rebuilding the entire insured building following a major event such as a fire. It includes the cost of demolition, site clearance, rebuilding the property to the same type and standard as the original, and professional fees.
Reinstatement value is not the same as market value. It may be higher or lower than the market value depending on the property type and the relative strength of property values in the area.
The surveyor who carried out the review has assessed the cost of reinstating the building as a whole. We have divided the overall cost between the dwellings in the building using the dwelling’s rateable value. This is the same method we use to apportion the costs of major works and means that larger properties have higher premiums than smaller properties.
Under the terms of the lease, we as landlord have to insure the building and pass the costs of insurance to leaseholders. Leaseholders cannot arrange their own buildings insurance.
However, the buildings insurance we arrange does not include contents, and we encourage leaseholders to take out their own insurance to protect their contents. Leaseholders should take care that any policy they take out does not duplicate cover they already have through the buildings insurance.
In recent years most insurance providers have stopped providing buildings insurance for local authority leaseholders, and the few providers that offer this cover are charging higher rates than when the market was more competitive.
In 2023 we tendered for buildings insurance and offered the contract to Protector, the only company that submitted a bid. In 2024 we entered into a long-term agreement with Protector for three years with an option to extend to five years. Protector is giving us a 10% reduction in premiums for entering a three-year contract.
Protector has not increased its rates from last year, so any change in the premium from last year is due to the change in the sum insured (the reinstatement value).
We have arranged for you to be able to pay by instalments, rather than in one payment as specified in your lease. All leaseholders with an existing direct debit will have the charge collected in nine monthly instalments from July 2025 to March 2026 though they can call and arrange to pay more quickly if they wish.
Leaseholders currently without a Direct Debit (DD) can pay as many instalments as they need up to March 2026 to pay the charge. Please contact our Leasehold Income team:
- by email: leaseholdincome@hounslow.gov.uk
- by phone: 020 3949 7732
