Mr Gove warned a lack of new policies being offered from insurers was forcing people to shop in a limited market place and "in many cases, trapping people with their current provider".
James Dalton, director general of insurance policy at the Association of British Insurers , said it recognised and sympathised with "the challenges leaseholders are facing". "This is especially important as most leaseholders pay for buildings insurance through service charges, and cannot shop around to find the best deals," he said.
He said businesses who manufactured combustible cladding and insulation "must pay now, instead of leaseholders".Recent figures show almost five years on from the Grenfell Tower fire, 40% of buildings in England with the same type of cladding have not been made safe. The FCA said a key factor in the price of insurance policies was the insurers' assessment of risk, which it said had been affected by unsafe cladding.