A resident angry at the “outrageous increase” in buildings insurance is calling on Havering Council to take another look at its contract before it kicks in later this month.

Leaseholders living in council freehold properties received a shock in January, when they were informed of a dramatic hike in their buildings insurance costs due to a new five-year contract the council had signed up to. 

As revealed in the Recorder, this included annual increases for some of more than 200 per cent. Two residents this paper spoke to outlined how their buildings insurance fee would rise from £185.53 to £573.05, up nearly 208pc. 

The letter, seen by the Recorder, admitted the new contract, due to come in on March 31, “does unfortunately result in a significant increase”. However, it added that just one bidder, Protector, was deemed suitable after the council went out to tender, with only one other applying. 

Cllr Paul McGeary, cabinet member for housing, put the increase in costs down to a series of factors, including inflation, supply chain pressures and increased severe weather, resulting in an “extremely tough” market. 

Romford Recorder: Cllr Paul McGeary, cabinet member for housingCllr Paul McGeary, cabinet member for housing (Image: Havering Council)

However, concerns have raised by residents about the way the tender process was run, with the council stating it had not approached individual providers but instead ran an open tender procedure.

Several leaseholders say they have proactively contacted other insurance companies and been given estimates closer to those they paid under their previous contract. 

One of those residents, Karen Randall, has set up a petition as she looks and try push the council to review its contract with Protector. 

Romford Recorder: Karen Randall, one of the leaseholders to be impacted by the price increase, is requesting the council review its new buildings insurance contractKaren Randall, one of the leaseholders to be impacted by the price increase, is requesting the council review its new buildings insurance contract (Image: Karen Randall)

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On why she decided to get the petition running, Karen said: “I set this up because I hope more leaseholders will see that they don't have to just put up with the increase in insurance, we need to let the council know we are not happy.” 

She added she hopes it will make the council “sit up and see we are angry and fed up with them taking leaseholders for granted and think we have this magic money tree, to pay for this outrageous increase and decide to re-look at it and come up with a more reasonable cost". 

Havering Council was approached for comment.

View the petition here: https://www.change.org/p/havering-unfair-leaseholder-insurance-increase