Awaab’s Law set to transform housing claims sector – Paul Squires

The introduction of Awaab’s Law is expected to drive a surge in housing-related insurance claims.

This is according to Paul Squires, partner at Sedgwick Legal Services, who told Insurance Times that the law will increase claims for health impacts, property damage and the costs of temporary rehousing.

Introduced in the Social Housing (Regulation) Act 2023, Awaab’s Law took effect on 27 October 2025 and imposes strict legal duties on landlords to address dangerous housing conditions within fixed timeframes.

The law was set into motion after the death of two-year-old Awaab Ishak from exposure to black mould in his family home after landlord negligence.

As a result, the law requires reported hazards to be investigated within 10 working days, emergency cases to be made safe within 24 hours and significant hazards to be addressed within five working days of investigation.

For insurers, Squires explained, the new law adds pressure to the financial and reputational risks for housing providers and their insurers.

As well as an anticipated spike in claims, he noted that this would likely be followed by “premium increases”.

“This will make insurance a central component in improving housing safety, but also a financial risk for landlords who fail to adapt,” he continued.

“We expect new policy wordings will explicitly tie coverage to evidence of inspections, maintenance logs and tenant communication systems. Failure to provide evidence or to meet the news statutory deadlines could void cover for related claims.”

What claims will dominate?

According to Squires, damp and mould will dominate early claims under the new law.

This will be closely followed by insulation failures, poor ventilation and structural water ingress as they often cause or exacerbate decay, he explained.

Further, he warned that recently fitted insulation could cause substantial issues to claims regarding damp and mould.

In a recent survey by the National Audit Office (NAO), it was revealed that 98% of homes given external wall insulation under the government energy efficiency scheme will require repair work.

In terms of the accommodations most effected, Squires said tower blocks, pre 1930s housing and converted properties are potentially at increased risk of housing disrepair claims – particularly in London and the north of England.

He continued: “For landlords and insurers, the priority should be early detection, preventive maintenance and airtight documentation to reduce exposure to these high‑risk claims.

“Insurers will also need to marshal their claims defence teams to ensure that appropriate claims are settled quickly and proportionately to reduce legal costs, but that defendable claims are challenged. For example, if the alleged damage or injury is the result of misuse rather than disrepair.”

Adapting to change

To respond quickly to the new legislation, Squires anticipated that the sector will move from a reactive to a preventive, compliance‑driven model.

In this model, he said he expects that insurance cover, premiums and claims defensibility will depend on a landlords’ ability to prove they are meeting their obligations.

He also said that he believes this “shift” may lead to the development of bespoke insurance-related products for housing compliance risk.

He concluded: “Insurers will need to adapt by embedding compliance checks into underwriting, incentivising preventive maintenance.

“Landlords who can demonstrate robust compliance may be rewarded with more favourable insurance terms, while those who cannot may struggle to find insurance at all.”