Combustible Cladding and Insurance

In recent years there have been major issues relating to Cladding, also known as Aluminium Composite Panels (ACP’s), of buildings. This issue is Global, with injuries and fatalities as a result of cladding fires, becoming front of mind in both the populace and government regulators.

A major question that needs to be asked with regards to Cladding is what the Cladding or Façade of a building consists of, namely whether it is (FR) Fire Resistant or (PE) Polyethylene cladding and its many variants. Depending upon the response, the difference is substantial in terms of safety and fire rating.

The implication of this is best shown via actual live tests and demonstrations. Local business, ACLAD who are major designers, manufacturers and installers of architectural facades, have been involved with and undertaken these tests and have kindly provided multiple videos depicting different outcomes dependent upon the cladding used and also a specific video where it illustrates well the  difference in both fire intensity and damage caused.

In Australian parlance, it is a ‘no-brainer’ as to the type of cladding that should be used on the exterior of buildings. The building industry is aware, due to recent events, of the type of cladding that is safer for the ultimate end consumer of the product being the occupier of the properties.

Cladding has become a material risk and disclosure issue for insurers due to its potential flammable nature, depending upon the type chosen. We have seen sizable increases in premium costs, in addition to some insurers declining to offer cover, when cladding is advised as part of the building construction.

With this is mind, we see part of our role is to make insurers aware of the different types of cladding used on buildings and ensure this is taken into account in both the offering of coverage, and their premium rating.

For a discussion on your insurance, please contact us.

Source Material:  ACLAD Website