Composite Panels and Other Combustible Materials

Fire Risk and Spread

Some materials are far more resistant to fire than others, for example:

• Brick and concrete tend to contain fires, reducing damage
• Timber and other materials can accelerate fire spread
• Composite Panels and other Combustible Materials used in construction including (but not limited to) Linings/Cladding/Insulation can significantly increase fire severity and are not acceptable to many Insurers

Lower Risk (Generally Accepted)

• Mineral Wool (Stone Wool)
  Non-combustible and does not contribute materially to fire spread or smoke production.
  This type of insulation is widely accepted by Insurers without referral.

Medium Risk (May be Accepted, Subject to Conditions)

• PIR (Polyisocyanurate)
  A rigid foam insulation board (typically foil-face)
  May be acceptable where:
  
  • it is Loss Prevention Council Board (LPCB) approved, and
  • appropriate fire protection and risk controls are in place

If PIR is not LPCB approved, Insurers may decline to offer cover.

Higher Risk (Often Restricted or Declined)

• PUR (Polyurethane)
  Combustible (rigid foam) insulation with higher heat release and a greater contribution to fire spread.
• EPS (Expanded Polystyrene)
  Highly combustible and not acceptable to most Insurers.
  
• XPS (Extruded Polystyrene)
  Also highly combustible and typically unacceptable to most Insurers

Construction Materials

Traditional construction materials such as brick, concrete, stone and slate are generally regarded as non-combustible and are widely acceptable to insurers. However, the presence of composite panels or combustible materials, linings, cladding or insulation requires referral to Insurers. These include: timber or wood cladding, UPVC or plastic weatherboarding and all other non-standard or composite materials.

These materials can increase the risk of fire spread and may result in:

• Additional underwriting scrutiny
• Specific policy conditions
• Increased premiums or excesses
• In some cases, restricted or declined cover

Providing accurate construction information is essential. Incomplete or incorrect disclosure can affect policy validity and how claims are handled, potentially leading to reduced settlements or claim repudiation, particularly where material facts have not been fully disclosed.

Exposure to Other Risks

Building materials also influence vulnerability to everyday risks:

• Flat roofs can be more prone to water ingress and storm damage
• Lightweight cladding may be more susceptible to wind damage
• Timber elements can worsen escape of water losses

Insurers may adjust excesses, terms, or cover limits based on these factors.

Rebuild Costs and Downtime

Construction type plays a key role in how much it would cost to reinstate the building after a loss.

• Specialist or modern materials can be expensive and time-consuming to replace
• Heavier, traditional construction may be more repairable
• Complex builds can extend business interruption periods

Accurate construction information helps ensure your sum insured and indemnity period are adequate.

Rebuild Value vs Market Value

For insurance purposes, the Buildings Declared Value must reflect the rebuild cost, not the market or real estate value. This should include:

• Demolition and site clearance
• Professional fees (e.g. architects, surveyors)
• Compliance with current building regulations

As insurance brokers, we are not qualified to calculate rebuild values. However, we can assist by arranging a Desktop Rebuild Cost Assessment (RCA) at a cost of £149.56 per property.  We strongly encourage all property owners to regularly review the adequacy of their sums insured, as these cannot be adjusted retrospectively in the event of a claim.

Most insurance policies operate subject to an ‘average condition‘. This means that in the event of underinsurance, a claim settlement may be reduced proportionately to reflect the degree of underinsurance.