Insurance Provision for Timber Being Questioned

The insurance benefits of concrete construction have been underlined by reports that insurers could refuse cover for timber-frame buildings due to growing concerns about their fire safety and the increasing cost of claims.

The concerns of the insurance industry follow a spate of fires in large timber-frame buildings. Figures from the RISC Authority, a research and lobbying body for the insurance industry, calculate that 40% of fires that resulted in a loss of over £150,000 involved structures built using new methods of construction – notably timber frame and light gauge steel frame. The Authority has submitted a report to the London Assembly warning of the risks of timber frame following a number of high profiled fires.

Both Aviva and Axa insurers have expressed concerns over the ‘disproportionate losses’ from large buildings built using new methods of construction and have warned that premiums for such structures could rise or insurance cover be withdrawn.

Every fire causes financial loss and in most cases insurers have to pay for the damage and repair”, said Andrew Minson, executive director of The Concrete Centre. “For this reason, insurance companies keep comprehensive databases on the performance of construction materials.  In mainland Europe, this information often results in reduced insurance premiums for concrete buildings due to their proven fire protection and resistance.” Minson pointed to France where insurance premiums for warehouse built from concrete can be reduced by up to 20%. “The growing emphasis on risk avoidance means that the inherent fire resistance of concrete is being increasingly recognised, and it will be of no surprise if this is more widely recognised in lower insurance premiums in the UK”, he said.

Concrete can offer up to four hours fire resistance, well beyond the periods often stipulated by the Building Regulations for life safety. It offers this high level of protection for buildings whether under construction or completed, with no need for fire-proof boards or finishes that might be compromised due to poor installation, alternations or refurbishment.

“New methods of construction seek to increase building efficiency but recent events may compromise this objective. To manage fire risk during construction, inefficiency will be introduced if fire protection and fire compartmentation need to be introduced piecemeal. Concrete construction offers fire resistance during construction and during operation without the need for additional fire protection, so the modern efficient methods available through innovative formwork and precast concrete solutions can be fully utilised to deliver fast overall construction programmes,” said Minson. “Concrete offers insurers and policy holders the potential for minimal damage, and therefore, smaller claims and lower premiums.”

Ref: TCC643