LRPM warns unchecked insurance valuations could be costing leaseholders thousands

The warning comes after LRPM helped residents at a historic Grade II* listed estate cut their annual insurance bill by £16,000.

LRPM commissioned a comprehensive rebuild cost assessment, which revealed that the 19th-century property had been insured for several years at approximately £37,000 — nearly twice the expert assessment determined was the correct rebuild cost.

The incorrect historic valuation had also meant residents had been budgeting against inflated long-term costs, with the potential excess over several years exceeding £100,000. With accurate figures now in place, those funds can be redirected to assist in the management and upkeep of the building.

Letitia Randell, founder of LRPM, said:

“Buildings insurance is one of the biggest shared costs residents in blocks face, so it is important that the figures it is based on are accurate.

“For heritage buildings in particular, valuations need to be handled carefully. They must reflect the real cost of reinstating the building, but they also need to be regularly reviewed so residents are not left paying premiums based on outdated or inaccurate assumptions.

“This is a useful reminder for leaseholders and residents’ groups to ask when their building was last properly assessed, who carried out the valuation, and whether the insurance figure still reflects the property as it stands today.”