Cladding Safety Scheme Eligibility: Further Guidance

As highlighted in one of Devonshires' previous articles, the move away from remediation work that is in strict compliance with Building Regulations to a risk-based approach in accordance with PAS 9980 has had an unintended, but significant, impact on building insurance premiums. 

PAS 9980 predominantly focuses on the safety of the occupants, but the main concern of a building insurer when setting premiums is the building's ability to withstand damage with a view to reducing sums payable in a claim. Therefore, the competing aims have resulted in insurers seeking to minimise their risk by raising premiums. 

The Cladding Safety Scheme ("CSS"), which was announced back in November 2022 under the name of the Medium Rise Scheme, was intended to meet the cost of addressing life safety risks associated with cladding on residential buildings where the applicant is unable to afford to carry out the work themselves. 

Under the CSS, the remedial works required to address life safety fire risks associated with cladding must follow recommendations based on PAS 9980 methodology. The scheme covers a wide range of project costs, such as professional team fees, legal costs and the costs of the FRAEW report, as well as the cost of works directly arising out  of that report; but, the guidance on the CSS was updated on 16 February 2024 to clarify that building insurance premiums are explicitly excluded the scheme.

As a consequence of this update, it is clear that applicants which intended to benefit from the scheme by virtue of not having sufficient funds to finance the work still may be impacted by significant, irrecoverable costs related with insuring the building after it is remediated.

For further information, on the CSS or remediation of cladding defects, please contact a member of our Construction team.