These examinations are undertaken by a qualified professional to assess the safety of external walls on high rises and used to help people buy, sell and remortgage properties above 18 metres.
The government’s actuary department (GAD), which supported the Department of Levelling Up, Housing and Communities (DLUHC) to develop the scheme, has entered into commercial arrangements with an insurer who will give insurance policies to qualified professionals.
The insurer was not disclosed.
Jacqui Draper, actuary at the GAD and project lead for the scheme, said the initative was a “complex and significant piece of work” and estimated claim costs could be £100m.
She added that there was no theoretical cap on the total size of claims that could be made, and the department had advised the DLUHC on the level of premiums needed to recoup expected claims and operating costs.
The DLUHC has been contacted for further detail around premiums.
The GAD said the scheme would enable the sale of flats in thousands of high-rise buildings.
The department explained that following the Grenfell fire in 2017, mortgage lenders had become “reluctant” to lend to those buying flats in high-rise buildings.
The Royal Institute of Chartered Surveyors (RICS) then introduced the EWS1 assessment form in 2019 to help provide assurance to the industry.
The assessment clarifies whether remediation work is needed on a high-rise building, however many qualified professionals found that they could not secure professional indemnity insurance to cover such assessments.
The DLUHC then proposed it would launch a government-backed professional indemnity insurance scheme for EWS1 assessments.
