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You can find the current article at its original source at https://www.theguardian.com/society/2018/jul/09/grenfell-type-cladding-on-london-flats-to-be-replaced-at-insurers-cost
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| Grenfell-type cladding on London flats to be replaced at insurer's cost | Grenfell-type cladding on London flats to be replaced at insurer's cost |
| (about 3 hours later) | |
| Residents in London apartment blocks who faced bills of up to £40,000 each for Grenfell-type cladding to be removed have spoken of their relief after their insurer stepped in to foot the bill. | |
| In a landmark decision, the National House Building Council, which had provided a 10-year warranty for homeowners in the 11-block New Capital Quay complex in Greenwich, announced on Monday it would be paying for the remedial works. | In a landmark decision, the National House Building Council, which had provided a 10-year warranty for homeowners in the 11-block New Capital Quay complex in Greenwich, announced on Monday it would be paying for the remedial works. |
| “This has been a highly complex process and residents have understandably been concerned. We have made every effort to ensure they have been kept informed throughout the process and residents can now be assured that they will not have to bear the costs of the work,” it said in a statement. | “This has been a highly complex process and residents have understandably been concerned. We have made every effort to ensure they have been kept informed throughout the process and residents can now be assured that they will not have to bear the costs of the work,” it said in a statement. |
| Residents, who were facing a share of a bill estimated at between £25m and £40m for cladding and millions more for round-the-clock fire wardens, were elated with the news. | Residents, who were facing a share of a bill estimated at between £25m and £40m for cladding and millions more for round-the-clock fire wardens, were elated with the news. |
| “This is great news. NHBC has stepped up and accepted liability. The question now is whether Galliard [the developer] will also do the right thing and get on with the work without more delay. They are responsible for the problem and best placed to make it right,” said resident Chris Bright. | “This is great news. NHBC has stepped up and accepted liability. The question now is whether Galliard [the developer] will also do the right thing and get on with the work without more delay. They are responsible for the problem and best placed to make it right,” said resident Chris Bright. |
| The NHBC said it would accept the insurance claim after it had “concluded that there was a failure to comply with building regulations at the time of construction” following “expert input and a review of the individual circumstances at this site”. | The NHBC said it would accept the insurance claim after it had “concluded that there was a failure to comply with building regulations at the time of construction” following “expert input and a review of the individual circumstances at this site”. |
| The leaseholders have 10-year warranties with the NHBC to cover building defects. The NHBC also signed off the development in its role as a building control organisation. | The leaseholders have 10-year warranties with the NHBC to cover building defects. The NHBC also signed off the development in its role as a building control organisation. |
| The NHBC said the developer was “legally responsible for ensuring compliance with building regulations. NHBC, as the building control body, does not confirm, guarantee or approve that buildings comply with building regulations.” | The NHBC said the developer was “legally responsible for ensuring compliance with building regulations. NHBC, as the building control body, does not confirm, guarantee or approve that buildings comply with building regulations.” |
| Residents had told of their fear of living in a building they believed could be a fire trap since discovering the Grenfell-style cladding last year. | Residents had told of their fear of living in a building they believed could be a fire trap since discovering the Grenfell-style cladding last year. |
| They have also said they felt locked in a financial trap because their homes had become unsellable, with one woman, Cecile Langevin, told her £475,000 flat was worth just £50,000. | They have also said they felt locked in a financial trap because their homes had become unsellable, with one woman, Cecile Langevin, told her £475,000 flat was worth just £50,000. |
| A second family, which has seen the value of its London flat slashed from £600,000 to just £90,000 because of the Grenfell-style cladding, was thrilled to learn they no longer faced the bill. | A second family, which has seen the value of its London flat slashed from £600,000 to just £90,000 because of the Grenfell-style cladding, was thrilled to learn they no longer faced the bill. |
| “I think it is amazing. It’s the most pertinent thing that we all wanted. We just wanted to live somewhere that was safe. I was genuinely getting worried about living there,” said Nerisa Ahmed, who bought the flat with her husband under the help-to-buy scheme and had two offers fall through in the past six months because of the cladding. | “I think it is amazing. It’s the most pertinent thing that we all wanted. We just wanted to live somewhere that was safe. I was genuinely getting worried about living there,” said Nerisa Ahmed, who bought the flat with her husband under the help-to-buy scheme and had two offers fall through in the past six months because of the cladding. |
| Leaseholders received a letter from the NHBC to say it would settle claims made by Galliard, which built the flats, on behalf of leaseholders “by making a payment equal to the cost of the remedial scheme, in accordance with the terms of the applicable policies. This will include the replacement of the ACM cladding”. It did not mention the cost of fire wardens who have been in the building around the clock, adding millions to the cost. | Leaseholders received a letter from the NHBC to say it would settle claims made by Galliard, which built the flats, on behalf of leaseholders “by making a payment equal to the cost of the remedial scheme, in accordance with the terms of the applicable policies. This will include the replacement of the ACM cladding”. It did not mention the cost of fire wardens who have been in the building around the clock, adding millions to the cost. |
| The Labour MP for Greenwich and Woolwich, Matthew Pennycook, who has been campaigning for a year to get help for panicked residents, described the development as “fantastic news”. | The Labour MP for Greenwich and Woolwich, Matthew Pennycook, who has been campaigning for a year to get help for panicked residents, described the development as “fantastic news”. |
| Fantastic news for all residents of New Capital Quay in West Greenwich. Having concluded their investigation, the NHBC have today accepted the claim and will now cover the costs of removing and replacing all the dangerous cladding and insulation across the site. | Fantastic news for all residents of New Capital Quay in West Greenwich. Having concluded their investigation, the NHBC have today accepted the claim and will now cover the costs of removing and replacing all the dangerous cladding and insulation across the site. |
| The NHBC decision could have implications for other private apartment blocks around the country, as it is responsible for warranties on 80% of new builds and is currently covering around 1.5m homes. | The NHBC decision could have implications for other private apartment blocks around the country, as it is responsible for warranties on 80% of new builds and is currently covering around 1.5m homes. |
| New Capital Quay is believed to be the biggest single development with Grenfell-type cladding with 2,000 residents over the Thames-side development. | New Capital Quay is believed to be the biggest single development with Grenfell-type cladding with 2,000 residents over the Thames-side development. |
| The decision by NHBC will be followed closely by the construction industry, with developers and freeholders locked in disputes over who is liable to replace Grenfell-style cladding. | The decision by NHBC will be followed closely by the construction industry, with developers and freeholders locked in disputes over who is liable to replace Grenfell-style cladding. |
| “As the warranty insurance provider at New Capital Quay, NHBC has investigated a claim under our policy and we can confirm that we have accepted this claim,” said NHBC. It said the decision on Greenwich would not set a precedent for other similar claims and it would assess future claims on their merits. | “As the warranty insurance provider at New Capital Quay, NHBC has investigated a claim under our policy and we can confirm that we have accepted this claim,” said NHBC. It said the decision on Greenwich would not set a precedent for other similar claims and it would assess future claims on their merits. |
| Galliard declined to comment. | Galliard declined to comment. |
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