EWS1 Professional Indemnity Insurance (PII) Scheme
The EWS1 professional indemnity insurance scheme (PII) helps qualified professionals get the cover they need to carry out external wall assessments (EWS1s).
- The government-backed EWS1 Professional Indemnity Insurance (EWS1 PII) Scheme for building fire safety assessors will be closing on 30 October 2023.
- Our research shows that the market has changed, and insurers are now offering professional indemnity insurance for EWS1 work. Assessors can access suitable insurance from the open market at a competitive premium and with a wider scope of coverage. The market has responded to the protection gap the government was looking to address, which removes the requirement for the government backed scheme. Continuing with the scheme would no longer be a good use of public funds.
- Government action has helped to get the market moving again and address this issue. The relevance of EWS1 forms is declining as wider government interventions have taken effect that support lenders to reduce their reliance on EWS1 forms and instead use other forms of documentation to support commercial lending decisions. The changes we have made have helped improve access to cover across the PI market.
- Policies sold under the scheme to date will continue to be insured under the original terms.
Background
External wall system forms, commonly known as ‘EWS1’ forms, have been developed by the Royal Institution of Chartered Surveyors (RICS), UK Finance and the Building Societies Association (BSA) to support the valuation process for residential buildings over 11 metres with cladding.
An EWS1 form is not a government or regulatory requirement, nor is it a building or life safety assessment. It is a mortgage valuation tool used by lenders when assessing mortgage applications. RICS published guidance (PDF, 2.8 MB) sets out the criteria that should be used to determine whether a building needs to complete an EWS1 assessment.
The government, in partnership with SCOR UK and MGAM Limited, has launched a state backed professional indemnity insurance scheme for qualified professionals conducting a fire risk appraisal on the external wall system to complete an EWS1 form for residential properties over 11 metres. The surveyors conducting these assessments continue to face difficulties purchasing appropriate insurance cover for the work, which means EWS1 forms remain hard to obtain.
Information for leaseholders
EWS1 forms can be required when valuing flats or other property in buildings. Assessors have faced difficulties getting professional indemnity insurance to carry out these assessments. The scheme intends to offer that cover to assessors where EWS1 forms have been requested for buildings above 11m, where it is otherwise difficult for the assessor to obtain appropriate insurance cover. This will see an increase in the completion of EWS1 forms, ultimately speeding up the sales process for leaseholders to remortgage, sell or buy as a result of being able to get an EWS1.
The Department for Levelling up, Housing & Communities (DLUHC) launched the EWS1 Professional Indemnity Insurance (PII) Scheme making professional indemnity insurance available to assessors so that they can undertake EWS1 surveys for residential buildings above 11m.
The scheme provides robust protection for building owners, freeholders, and leaseholders, by protecting them against any losses incurred from a survey found to be incorrect. The cover provides cover not only for the time the EWS1 is valid (5 years) but over a further 15 years afterwards. Claims arising during this time will be covered under the policy.
Information for assessors
This scheme will make sure assessors are fully insured, allowing qualified professionals to exercise their professional judgement on whether a building requires remediation. Assessors will not need to renew policies or purchase run-off cover.
The scheme uses standard contracting terms to ensure surveys comply with PAS 9980 guidance which sets out the method for competent professionals to conduct fire risk appraisals of external walls. The scheme will audit adherence to this standard.
Premiums under the scheme are a one-off cost and will cover claims against an EWS1 assessment whenever they may arise.
A comprehensive FAQ is available.
Eligibility
To apply, individuals must be named on the scheme eligibility register. To be included on the register, applicants must first meet the qualifying requirements of their professional body.
If you would like to access the scheme or are unsure if you are eligible, please contact your relevant professional body.
The registers are managed by the Royal Institution of Chartered Surveyors (RICS) and the Institution of Fire Engineers (IFE). See contact section below for details
How to apply
The scheme is available across the UK and is compatible with the Scottish Single Building Assessment and Welsh Fire Safety Building Passport.
To find out more, or generate a quote please visit MGAM Limited at the following link:
Additional EWS1 guidance
The EWS1 form is a cross-industry initiative from the Building Societies Association (BSA), the Royal Institution of Chartered Surveyors (RICS) and UK Finance to enable a fire safety assessment to be carried out on properties clad with potentially combustible materials.
For more EWS1 info, see the latest guidance from RICS
GOV.UK guidance pages on EWS1:
- Government steps in to help homeowners caught up in EWS1 process
- EWS1 or equivalent lender data on mortgage valuations for flats.
- Enabling flat sales in high-rise buildings
Contacts
Scheme queries
MGAM Limited: ews1help@mgamutual.com
DLUHC: DLUHC.EWS1PII@levellingup.gov.uk
Eligibility queries
RICS: contactrics@rics.org
IFE: info@ife.org.uk