Firetrap flats probe as insurance soars

THE City watchdog has launched an investigation into soaring insurance for leaseholders in flats wrapped in flammable cladding following a Daily Mail campaign.

Premiums have increased by up to 2,000 per cent, while some residents have lost their cover.

Housing Secretary Michael Gove yesterday told the Financial Conduct Authority he was ‘extremely concerned’ about ‘crippling costs’ faced by hundreds of thousands of families. In a letter to the watchdog, he said: ‘It is clear to me that the insurance market is failing some leaseholders.’

He added: ‘The market lacks transparency and there is not currently useful data to explain the rationale behind the increasing premiums charged by insurers and the conditions associated with the cover.’ The letter called on the FCA to investigate and report within six months.

In response, the FCA said it would be asking the industry what it could do to help leaseholders.

Premiums have increased by an average 350 per cent for those living in firetrap flats, according to the End Our Cladding Scandal group. The Mail has campaigned for justice for cladding victims.