Subsidence/Insurance Issues

sportslad

Hi All

I am currently buying a property which due to some broken downpipes has been subject to some subsidence. A claim to the insurance company was made in 2008, the repairs were carried out and signed off along with a structural assurance certificate in early 2009. The insurance company since then has renewed the policy with the current owners.

I have made enquires with the insurers to take the property on. They asked to see the survey report and the paperwork relating to the claim made last year. I have now been told by the insurers, that they won't insurer the property unless the electrics are replaced and that a drains test is made. This will obviously cause delays on the purchase.

So:
They only found out through my survey of the electrical and drains issues. But they are continuing to insure the building anyway. How does that affect the policy of the current owners now they have this information and I assume that they wont be able to sell the property (executors sale) without having this work done.

Could anyone give me some advice on how to proceed? I really don't want to have to replace the electrics at this stage of the game due to money implications. Could anyone recommend a specialist insurance company that would be able to assist in this?

I've purchased worse properties in the past that needed underpinning and structural work and this seems a little silly.

Any help would be appreciated.

Regards,

Karl

dacouch

You could try Bureau Insurance Services or Towergate as they offer cover for properties with previous subsidence/ underpinning. However they will normally perform their own survey at your cost and then offer cover using this survey. The premiums are normally much higher than normal companies and they will often ask for any work on drains to be carried out.

Generally your best bet is to stay with the same company who paid out the subsidence claim. You have to bear in mind that when / if you sell the property the new owner might have similar problems getting cover on a property that has subsidence which can affect the value. So its often best to bite the bullet now get the work done and take cover with the current company at a reasonable premium so that when you sell the property the new owner can see they can get cover at a reasonable price with a normal Insurer

ronniehamilton

Hi "sportslad"

As you mentioned your problem, I only can suggest you to go to direct to consultant who deals in property related insurance. He can only give you right guidance..

Best of luck..