Building compliance now plays a major role in how insurance claims are assessed, priced and approved across the United Kingdom. The rules that govern construction and ongoing building management have changed over the last few years. This is largely due to lessons learned since the Grenfell Tower tragedy and the introduction of the Building Safety Act 2022. As a result, insurers look more closely at safety standards, documentation and how well owners can show they are ensuring compliance.

This shift affects residential buildings, commercial properties and higher-risk buildings. If a building cannot show clear evidence of compliance, insurers may decide it is too risky. This can lead to higher premiums, reduced cover or claims that are rejected. Understanding how compliance links to insurance is now essential for building owners, accountable persons, designers and contractors who are involved in designing and constructing any part of the built environment. It also highlights a growing concern across the sector: how building compliance affects insurance claims, particularly when insurers rely on accurate documentation to assess risk and validate any claim that is submitted.

Why Building Compliance Matters to Insurers

Insurance companies measure risk before they agree to cover a building. Compliance is one of the key signs they look for. When a building meets regulations and has proper documentation, insurers consider it more reliable and less likely to generate safety claims or regulatory breaches.

The opposite is also true. A building with missing certificates, unclear history or known defects presents a higher risk of claims arising. Insurers respond by raising premiums or limiting what they will cover. In some cases, they might refuse cover altogether.

During underwriting, insurers look for clear evidence such as completion certificates, approved plans, fire safety documentation, certificates from competent professionals and records of inspections. The Building Safety Act 2022 has increased these expectations. This is especially the case for high-rise residential buildings, where safety standards and risk management now receive much closer attention.

How Non-Compliance Can Affect Insurance Claims

Non-compliant work makes insurance claims more complicated and often leads to refusals. When insurers review a claim, they assess whether the lack of compliance played a part in the damage. Even if the issue seems unrelated, the absence of proper approvals can still affect the claim because it creates uncertainty about the condition of the building.

Typical problems include structural changes that were never approved, electrical or plumbing work without certificates and fire safety systems that do not meet current standards. Insurers will often ask for records such as design documents, safety logs, inspection notes and maintenance information. If these records do not exist or are incomplete, insurers may decide that the owner has not taken reasonable steps to keep the building safe.

Non-compliance can also increase repair costs. A building may need further work to meet the rules before insurers agree to provide new or continued cover. In more serious cases, regulatory authorities may take enforcement action. Insurers are unlikely to support claims if the building is already known to have ongoing breaches of safety requirements.

How the Building Safety Act 2022 Influences Insurance

The Building Safety Act 2022 has reshaped the way insurance providers look at building safety. The Act created a new building safety regulator that oversees compliance and sets new expectations for how higher-risk buildings are designed, built and managed. This has led to stronger checks on fire safety, structural stability and overall risk management.

One of the most important changes relates to limitation periods. The Act extends the time available to bring a claim under the Defective Premises Act 1972. Claims can now be made for 30 years retrospectively for past work and 15 years for new work. This means that issues linked to historic construction may now be investigated and challenged for far longer than before. As a result, insurers expect building owners to keep more detailed records that show how compliance was managed at each stage.

The Act also introduces clearer roles for accountable persons. Insurers may request evidence that these responsibilities are being met, especially in buildings with complex structures or higher-risk features. Good documentation helps show that required checks have taken place and that safety issues have been addressed.

Fire Safety and the Importance of Clear Records

Fire safety failures remain one of the leading causes of insurance disputes. Since the Grenfell Tower tragedy, insurers have placed more weight on fire safety controls and documentation. They often need proof that fire doors, alarms, escape routes, materials and compartmentation meet the required safety standards.

Typical information insurers look for includes records of maintenance, certificates that confirm installation quality and reports from fire safety assessments. If a building cannot provide this information, insurers see it as a sign that fire risks may not be well managed. This can lead to higher premiums or exclusions for certain types of damage.

If a fire does occur, missing fire safety information can have a serious impact on a claim. Insurers will consider whether the lack of records contributed to the incident or made the damage worse. A clear golden thread of information supports both the insurance process and the wider legal duty to protect residents.

The Building Safety Act puts additional pressure on accountable persons to take all reasonable steps to prevent building safety incidents. Showing that fire safety responsibilities are being met is part of this duty and helps strengthen the position of the building if a claim needs to be made.

How Compliance Issues Affect Different Types of Buildings

Different building types present different levels of risk and different compliance expectations. Listed and historic buildings require specialist materials and approved methods to maintain their heritage value. Insurers therefore, expect detailed evidence that any work was done correctly and in line with conservation rules.

Higher-risk buildings face some of the strictest requirements. These include more thorough inspections, the need for a safety case report and ongoing monitoring of structural and fire safety risks. Insurers may review these documents as part of the underwriting or claims process.

For standard residential buildings, compliance still matters. Unapproved extensions, loft conversions or window replacements can cause issues during a claim. Missing building regulations approvals are often highlighted during conveyancing and can delay or weaken a claim if a problem arises.

The Golden Thread and Why Documentation Supports Insurance Claims

One of the most important parts of modern building management is maintaining accurate records. The golden thread describes the continuous and accessible record of building information. This includes drawings, certificates, inspection reports, fire safety records, material specifications and maintenance logs.

When an insurance claim is made, these records help show that the owner or accountable persons have met their responsibilities. Good documentation can also help demonstrate that the incident was not linked to non-compliant work.

MosaicGT’s app helps building owners organise and manage these records. It does not replace compliance duties, but it gives owners a structured way to track the information insurers and regulators are likely to request. Having this information ready can make a significant difference if a dispute arises.

Professional Indemnity and Compliance in the Construction Sector

Compliance affects more than property insurance. It also affects professional indemnity insurance for designers, contractors and engineers. The extended limitation periods mean that claims may be brought many years after a project is completed. This places greater pressure on professionals to maintain detailed records and follow building regulations at every stage.

If a defect is linked to non-compliant work, insurers may face significant exposure. As a result, they often assess whether dutyholders acted within their competence, followed the correct procedures and documented their work fully. Any gaps in record keeping can create additional risk for both the professional and their insurer.

How Building Owners Can Strengthen Their Position

To reduce the risk of future insurance problems, building owners and accountable persons should take active steps to maintain compliance. This includes seeking proper approvals, using qualified contractors, keeping up with safety checks and storing all relevant documents. Reviewing building regulations and understanding changes brought in by the Building Safety Act 2022 can also help owners stay ahead of potential issues.

A strong compliance record shows insurers that the building is well managed. This improves the chances of a fair and successful claims process and reduces the likelihood of unexpected difficulties.