Grenfell Tower fire: insurance premiums double after the accident

The death toll of this tragedy reached 71. The 27-storey building with a value of 26 million USD was totally destroyed.

Grenfell Tower fire: the causes of the accident

An internal report, published in the press on April 16, 2018, brought several clarifications as to the origins of the drama. The document of BRE Global group, specialized in fire safety, points particularly to the building refurbishment works between 2014 and 2016. These works would have altered its structure from relatively protected against the risk of massive fire to vulnerable.

Several breaches of safety rules are noted:

• cladding is made of flammable material
• the cavity barrier is under-dimensioned, which facilitates the spread of flames in case of blaze
• the space around the window frames is filled with flammable materials (insulating foam, a by-product of plastic, etc.)
• the insulating materials used in the building are unbranded and therefore are contrary to safety standards

Under these conditions of the explosion, it took only a refrigerator to destroy all the 120 apartments of Grenfell Tower.

Grenfell Tower fire: rising cost of insurance

The Grenfell Tower fire will result in an increase of almost 86% of the cost of insurance for people and the firms established in the Royal District of Kensington and Chelsea in London. The Spanish insurer, Ocaso S.A. Cia. of Seguros y Reaseguros has already adjusted its rates.

Insurance premiums for a four-bedroom apartment will rise from 548 USD to 980 USD a year. The bill will increase by 335 USD, that is 728 USD in total for single-room apartments.

In addition to these rate increases that will be applied to residents of the district, a municipal tax is expected. It will aim to cover additional costs related to the fire, including those relating to the relocation of the former occupants of the tower.

The borough has already spent 29 million USD to relocate victims in hotels and has put 7 million USD aside for fees numerous legal recourse fees: nine months after the fire, two-thirds of the victims are still waiting for relocation.