Buildings Insurance (subsidence claim 20 years ago)

socrates

My parents had a claim for subsidence 20 years ago - it seems they can never move insurance company for buildings cover - is that correct.

Are there any companies that will accept them - their buildings insurance has gone through the roof - on this renewal?

dacouch

Which Insurer are they with

socrates

Zurich Insurance

cattie

Have they tried getting other quotes? It's not so much that they can never change insurers, they can if they find someone willing to take them on & I'd have thought a claim 20yrs in the past old enough to be acceptable to a lot of insurers.

With subsidence & remedial works, the existing insurers are honour bound to carry on insuring the property for the current & any future owner. This is to ensure that the building retains insurance cover & the claim will remain 'live' should there be any further claims for the same reason.

However, once a period of time has elapsed with no further problem, there is nothing stopping you trying to switch if you are able to find any other insurer willing to offer cover.

FlameCloud

cattie wrote: »

With subsidence & remedial works, the existing insurers are honour bound to carry on insuring the property for the current & any future owner. This is to ensure that the building retains insurance cover & the claim will remain 'live' should there be any further claims for the same reason.

.

Really? Any reference for this? What happens, for example should the policy holder commit fraud on a future claim- are they still 'honour bound'?

EdGasket

I'm having the same trouble though my subsidence claim was just a few years ago. As soon as I mention it, other companies don't want to know. My insurance is being racked up and up by my existing company who are well aware I probably have no option but to stick with them.
If I pose as someone else to get a comparative quote from the same company but without mentioning the subsidence, would I have grounds to complain to the FSA that the insurance company are basically screwing me?

mattymoo

EdGasket wrote: »

I'm having the same trouble though my subsidence claim was just a few years ago. As soon as I mention it, other companies don't want to know. My insurance is being racked up and up by my existing company who are well aware I probably have no option but to stick with them.
If I pose as someone else to get a comparative quote from the same company but without mentioning the subsidence, would I have grounds to complain to the FSA that the insurance company are basically screwing me?

No because a history of subsidence is a material factor in determining whether or not a firm wishes to provide cover. If you fail to disclose it you could then find any claim you make (and not just subsidence) will be turned down and the policy voided.

It's not easy to get away with either. Insurers share information with each other. In addition, loss adjusters who work for several insurers have long memories and will flag up any previous claim issues.

The best you can do is look at the cause of the original subsidence and what remedial action was taken. For instance, if it was tree root damage and the trees have since been felled or pollarded, an insurer may consider the risk.

EdGasket

The surveyor's reason given for subsidence was 'poor foundations' (yeah right, on a house that has stood fine for 120 years !). Actually the builders found it was due to a drain but that is not what is on record. Anyway it has been underpinned (£20K's worth), and given a certificate. So why should I not be able to get a normal quote from my existing company and then ask them why my premium is x amount higher. Then if they say it's due to subsidence, I can say that their own appointed people have repaired it and are they telling me it hasn't been properly repaired? Is that not a fair argument?

dacouch

Insurers do not like taking on homes with previous subsidence as if there is a further claim it is very complicated and expensive. Houses that have not had the subsidence done correctly can subside again in the future eg a home that is partially under pinned can subside on the part that is not underpinned

EdGasket

Yes, yes, yes, I understand all that dacouch; I am suggesting I get an online quote from my own existing insurer, the one who has supposedly fixed the subsidence, this will be cheaper than my actual renewal that they sent me, I guarantee, by x amount (maybe £200 or so). So why should I be paying x amount more with my existing company who have resolved the subsidence?

dacouch

You could try that and they may honour the lower price for you.

Personally I would not recommend doing that, the reason is when / if you try and sell the house the purchasers will pick up on the previous subsidence and their solicitor will ask for your Insurers to give an undertaking they will offer cover without restrictions (Subject to their normal underwriting critera). If you change policies even with the same Insurer the paper trail will probably be lost and you could find it difficult getting the Insurer to give the undertaking. If you can't do this it will have a dramatic effect on the value of your house.

You could try getting the quote and asking them to make some kind of reduction on your existing policy, they may agree to it