How is building insurance managed? 

Updated: 15th September, 2025

Building insurance premiums across residential property have risen in recent years. This is due to a combination of factors, which include general inflation, heightened building safety concerns post Grenfell and climate risk. Overall, the pool of insurers with an appetite to cover residential buildings has reduced and this has resulted in rising premiums.

Nonetheless, there are still choices to be made. Your building owner (freeholder) is legally responsible for ensuring the building is insured.  They usually ask the managing agent (e.g. FirstPort) to handle this responsibility on their behalf.   

The policy is typically placed by brokers which advise clients on their options based on a range of factors including: 

• Level of coverage required for the property, focusing on those areas where claims are most likely to be made  
• Insurer appetite and capacity for buildings of differing risk profiles  
• The level of claims being experienced, reflecting both the local and national market 

In some cases, FirstPort uses Knight Square Insurance (KSI) as a broker. KSI is run independently from FirstPort but is part of the wider group of companies that FirstPort itself belongs to. It is a specialist broker in the residential market, regulated by the Financial Conduct Authority (FCA), which allows it to secure competitive products. Policies are placed with top-rated insurers to ensure a level of cover that is proportionate to risk.  

KSI and all the brokers we work with will typically receive commission from the policy provider, as is normal practice in the insurance industry. KSI’s rate of commission will vary depending on the policy but is ordinarily between 5.5% and 16% of the overall premium. These rates have not increased for many years and in some cases they have fallen. 

KSI does not: 

• Charge fees for insurance, except in cases where it is not receiving commission from the policy provider  
• Charge for document production or administration for amendments throughout the lifecycle of the policy  
• FirstPort does not receive any commission from Knight Square or any other broker for referring work

While premiums across the industry have remained stubbornly high, there are indications that this may soften through 2025. Greater risk certainty in areas of regulation, including the building safety regime, should support lower premiums.