Cole-Hamilton urges UK and Scottish Housing ministers to work with insurance companies to ensure RAAC cover

Scottish Liberal Democrat leader Alex Cole-Hamilton has today urged the Scottish and UK housing ministers to work with the insurance industry and affected householders to ensure that no one loses out as a result of discovering that their home contains the dangerous building material RAAC.

His call come as Scottish housing minister Paul McLennan conceded in response to a parliamentary question from Mr Cole-Hamilton that some members of the Association of British Insurers may void insurance policies as a result of RAAC being identified and that homeowners may face higher premiums as a result of their properties being “less commercially attractive”.

Earlier this year it emerged that residents in Aberdeen who contacted their insurers after being made aware of the presence of RAAC were informed that their policies were being withdrawn. It has now been confirmed that these properties will be demolished

RAAC has also been found in council houses in Angus, Clackmannanshire, Dundee, North Lanarkshire, Stirling, South Lanarkshire, Edinburgh and West Lothian.

Mr Cole-Hamilton said:

“We know that RAAC is present in houses across the country. These were properties bought in good faith.

“In Aberdeen, hundreds of people have had their lives turned upside down. No one should have to worry about whether the roof above their head could pose a danger to them or their family. Now on top of that they have to worry about their premiums spiking or even their insurance cover being withdrawn.

“I am glad that the Scottish Government has met with the Association of British Insurers but all they seem to have extracted is warm words.

“I am urging the Scottish and UK housing ministers to work with the insurance industry and affected householders to ensure that no one loses out as a result of discovering that their home contains this dangerous building material.

“We need a national register of buildings with RAAC in place and for the Scottish Government to work with local authorities to ensure that these sites are made safe.”

Additonal Information:

Mr Cole-Hamilton’s question was as follows:

Alex Cole-Hamilton (Edinburgh Western) (Scottish Liberal Democrats): To ask the Scottish Government whether it has made an assessment of any impact on (a) buildings and (b) contents insurance of reinforced autoclaved aerated concrete being identified in a property, and whether it has any plans to provide guidance or support in relation to this matter.

Paul McLennan: The Scottish Government has met with the Association of British Insurers (ABI) around the issue of insurance and we have been clear that we would expect responsible insurance companies to offer as much assistance as possible to residents affected by RAAC. The actual cover available will be dependent on the individual policies that homeowners have in place. Building insurance is designed to cover damage caused by defined perils such as storms or floods and would not cover building defects or maintenance issues that develop over time. Homeowners should still be able to claim on their insurance policies if they suffer damage from these perils.

The ABI has indicated that the majority of their members will not void insurance policies as a result of RAAC being identified and that households can expect to continue to be covered for the defined perils outlined in their policy. We have also been assured that insurers will consider the renewal of cover for properties with RAAC, but these may be less commercially attractive as their construction could present a risk of more extensive damage from a named peril. ABI advice remains that policy holders should consider their renewal needs early and may wish to shop around providers to find a policy that provides best value