Insurance cost blowout threatens dangerous cladding repair works

Victorian building surveyors are being driven out of business because of huge insurance price hikes caused by the cladding crisis, with vital repairs now at risk.

A cigarette butt caused a fire at the Lacrosse Tower in Docklands in 2015.

Planning chiefs will meet the expert who dealt with Britain’s deadly Grenfell fire in a bid to clean up Victoria’s cladding crisis.

It comes amid fears repairs could be delayed as insurance hikes drive building surveyors and fire safety engineers out of business.

Premiums have gone up as much as 400 per cent.

Planning Minister Richard Wynne and Victorian Building Authority chief executive Sue Eddy have flown to Britain seeking advice from Grenfell investigation experts and assurances from insurance companies.

“I want to talk with UK experts about their experiences and how we can share ideas and solutions for fixing this international problem,’’ Mr Wynne said.

Mr Wynne is meeting with engineer Dame Judith Hackitt, who led the review into high-rise regulations after the 2017 Grenfell Tower fire which killed 72 people.

Dame Judith was in Melbourne in February but it is understood she did not meet Mr Wynne.

The fire-damaged Lacrosse Tower in Docklands.

Opposition planning spokesman Tim Smith said this week’s meeting should have occurred then.

“He’s been completely asleep on the cladding fiasco,” he said.

“He’s now spending thousands of taxpayers’ dollars flying all the way to London to meet her — how ridiculous.”

The Sunday Herald Sun has learned an average of 54 tenants and owners are contacting the newly-established Cladding Safety Victoria each day as insurance increases cause chaos for building experts tasked with fixing cladding issues.

Master Builders Association chief executive Rebecca Casson said a new building permit levy — introduced to claw back taxpayer dollars directed to Victoria’s cladding woes — was causing major issues.

“We are looking at how that levy could hit the cost of construction in Victoria,’’ Ms Casson said.

The Lacrosse building fire in Victoria

Aftermath of the Lacrosse fire.

Australian Institute of Building Surveyors vice-president Wayne Liddy said few practitioners would be available to issue building permits or rectifications.

“Building surveyors have just gone out business as a result of professional indemnity insurance.

“We’re talking about premiums increasing 200 to 400 per cent seems to be about the average.

“And the killer blow is the excess, which is increasing by a similar amount so you can budget for an extreme premium, but if you get one or two claims it’ll obliterate the business.’’

The state government has announced a $600 million package to rectify flammable cladding.

Fire damage at the Neo200 building on Spencer St, Melbourne.

The state government has announced a $600 million package to rectify flammable cladding.

Work has begun on government-owned buildings and some more dangerous apartment blocks.

Insurance changes making premiums cheaper for building experts who undertake they won’t work with external cladding are due next month.

A Victorian Building Authority spokesman said the body was in regular contact with owners corporations which were expected to keep owners and residents informed.

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@IanRoyall