Buildings Insurance with Subsidence

dacouch

As premier has pointed out there are a few brokers with schemes for properties that have been underpinned. These will normally require you to pay circa £150 for a survey which they refund if they cannot offer cover. Their premium are higher than the normal market and they will often (Not always) quote with a largish subsidence excess. They will also often request you commission a report and carry out any work recommended by an aborculturalist if there are remaining trees within about 30 feet of the property (Sometimes larger discount for certain types of trees) and they normally request you have a survey of the drains carried out and any work this throughs up carried out (The drainage company normally find work).

I normally only use these companies in unusual cases eg where the owner has stopped Insurering with the Insurer who paid out the subsidence claim and the Insurer has decided to stop offering cover. They generally use Lloyd's Syndicates and the general cover is not always as good as from a main stream Insurer.

If you want to make enquiries then this company offer it http://www.subsidencebureau.com/ (I've used them before and they are efficient).

As a general rule it's best to stay with the Insurer who paid out the claim, this because they will normally carry on offering cover and will allow the policy to be transferred to any future purchasers as has happened with you. This helps reduce any reduction in value on the value of the house and minimises problems when you sell. The companies I refer to above will also normally allow their policy to be transferred but it always worries me that something may change and they withdraw from the market leaving you high and dry (It is very unlikely but you never know with Insurance). I also find having a mainstream Insurer covering the property tends to make potential buyers and their solicitors feel safer so can make it easier to sell the home

Out of interest how much is your building insured for and was the whole of the property or just part of it underpinned?

donsville1

Only about 25% of the house floor area was underpinned. The re-build cost this year is £224K. Premier's suggestions are great (Thank you Premier) but I think I am tending to agree with you by sticking with a mainstream insurer as we will want to sell the house in around 5 years time and I certainly dont want to be left high and dry.

dacouch

£800 a year for a building with a sum insured of £225k is not that bad for a home with subsidence, I would expect one of the companies that specialise in the underpinned homes would quote circa £500 to £700 for similar cover (Depending on your circumstances and post code etc).

I suspected only part of the home had been underpinned by the £3000 subs excess you have, it is not that unusual for a home that is only partially underpinned for it to subside again. This is because one part of the house is now much stronger than the other so can sometimes cause the other sides to subside expecially if there are other issues eg trees or problems with drains. The increased excess would suggest to me that Aviva suspect their is an outside chance of further problems in the future.

It would be wise for you to keep an eye on trees around your house, generally if they are within 30 feet of the home or wider if there branches reach further than this. Pay particular attention to thirsty / fast growing trees such as Willows and Leyland. Its also an idea to keep an eye on your drains. With the predicted hotter summers this can potentially cause clay to shrink which can cause subsidence, it can help prevent this if there are long hot summers to dampen down the clay (Assuming you are in a clay area) occassionaly to try and help prevent problems.

There are a few websites that give good advice on avoiding problems with subsidence or dealing with the aftermath. It might be worth spending a it of time reading them, there is some advice at the bottom of the page of this link http://www.subsidencebureau.com/subsidence_introduction.htm

When looking at the premium you are paying bear in mind a subsidence claim involving underpinning generally costs the Insurer upwards of £30000, I have handled a case for a very large pub car park wall (It was a listed wall) that cost the Insurers £300k.