Buildings Insurance (subsidence claim 20 years ago)

EdGasket

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

Yes it's worth a try; I'll give it a go !

EdGasket

Well I got an online quote from Liverpool Victoria and declared my subsidence claim and that the property had subsidence in the past. The quote is over £300 cheaper than my renewal !!!
I must admit that I am a bit confused as I first obtained a quote without declaring the subsidence and then another declaring it and it made absolutely no difference to the price.
Do you see any problem with ignoring the renewal and simply buying the online quote which clearly states that I have stated there was a subsidence claim and subsidence in the past?

dacouch

Read my previous post about what can happen when you try to sell the house.

EdGasket

dacouch wrote: »

Read my previous post about what can happen when you try to sell the house.

Yes I did read that but I'm afraid I don't understand it. If I sell my house, I would have to declare the subsidence claim if asked, so what difference does it make? My house would be insured and presumably if the new owners wanted, they could continue with the same insurance company as me.

dacouch

There solicitor will not accept any ifs or buts, he will want to see a letter from your Insurer confirming they will transfer your policy to the purchasers (Subject to normal underwriting) with no restrictions on the subsidence.

Doing what you are with LV will mean they probably don't realise your property has subsidence and they don't have the file for your subsidence claim. There is a good chance when it comes to producing the letter LV won't be prepared to issue it. This will normally mean either the sale falls through or is delayed while the buyers find alternative cover at a vastly inflated rate and normally want to reduce the house price.

Give LV a call and ask them if they will supply the letter, make sure you get something in writing from them confirming they will. I've seen what you are doing go wrong plenty of times where people with subsidence have found a cheaper Insurer that overlooks the subsidence. Then often when they go to sell the house it goes wrong and they ask me to sort something out and its always in a mad rush when they ask (It takes a while to sort these out).

If there is a gap in cover your previous company will normally refuse to reinsure you as they look on it that you have been disloyal so they do not have to remain loyal

EdGasket

'Doing what you are with LV will mean they probably don't realise your property has subsidence'

How can that be when I have declared the claim on my online application along with selecting the option that says the property has suffered from subsidence? How can they claim not to realise? If I call them I fear they will withdraw their online quote and block me from generating another as it is a very good price !

dacouch

Its entirely up to you whether you contact them or not.

I have told you what the potential problem can be, I've seen it before as Fortis / Rias went through a period of doing the samething LV are doing to you. Lots of people in similar position to you went with them as they were cheap. They closed the loophole and when people sold their houses and asked for the letter confirming they would transfer the policy they used it as an excuse to get rid of the business. I had quite a few customers that ignored my advice that best practice was to stay with the same Insurer, some of them even told me I was ripping them off as their new price was so much cheaper. It wasn't a very good money saving thing for them when their house sales fell through and they had to remarket at lower prices.

I'm just saying think very carefully about what your doing and make sure all the i's and t's are dotted as if it goes wrong it will be either when you put a subsidence claim in or more likely when you sell the house

EdGasket

Thank you for the advice dacouch. However I think you missed the point that I will be with the SAME insurer. My online quote is with the same company; I am not switching insurers, only suggesting I take their online quote rather than their renewal which is 250% higher !!!

EdGasket

LOL (well not really, in fact quite worrying if you don't pay attention to the small print). I went to buy the online insurance which all the way through included subsidence cover, less £1,000 excess, then at the very last stage as I was buying it, it says no cover for subsidence in the midst of a page full of other stuff !!
Anyway I shall be having words with them as if they have repaired the subsidence properly then why should I be charged over £300 more than say, my neighbour's house who have not had their underpinning done?
Does anyone on here take out buildings cover that excludes subsidence?
I notice LV have added a load of exclusions to the policy re. their subsidence cover that never used to be there; makes me wonder if they'd ever pay up anyway or just get out of it by one of their exclusions e.g. settlement, improper building practice, poor materials or workmanship....the list goes on.

EdGasket

Called LV. They say I can have Buildings and Contents for around £200 with no subsidence cover or Buildings only with subsidence cover for £600. A big difference as when you add on contents with subsidence cover it's over £500 more. They claim the fact that part of the house had subsidence means it's more likely another part will.
I don't reckon we'll have any further subsidence problems as the rest of the house has deeper foundations than the part that was underpinned. Would you go for the £500 saving with no subsidence cover or pay the extra to include it?