Buildings insurance and subsidence

allywag

Hi All,
I am in the process of buying a house (1920s semi) which has some movement in the rear wall. The structural survey has attributed it to roof spread (slate tiles replaced by concrete years ago and roof not strengthened) and a leaking drain which has dampened the ground.

Anyway, the evidence of movement is very slight and probably historical, but still there. I will be putting in wall ties, fixing drains and strengthening the roof etc. so that's not a problem.

The problem however is insurance: when I called the current owner's insurance company to get proof I could transfer the insurance to me, they said they couldn't insure, because of the movement. This confused me, since the property IS currently insured - I suspect that the current owner did not divulge the subsidence issue.

My question is: can I insist that the insurance is transferred, since it is already in place or will I need to approach a specialist like Towergate or Adrian Flux?

Thanks,
Alex.

mattymoo

The continuation of cover aspect you mention, whereby the existing insurer continues to offer cover, only applies if that insurer has carried out a repair on the property to rectify the subsidence. In effect, they are guaranteeing the workmanship of their contractors and showing they have faith in the repair.

I suspect in this instance you are right, the existing owner has not mentioned the historical movement. Unfortunately that means you are stuck with the specialist market and their increased excess / premiums.

David_Aldred

Hi Allywag,
Roof spread on its own is not subsidence because the latter is best defined as movement of ground supporting the building, though spread can be a consequence of subsidence if that makes sense. I just wondered whether you had told the insurer the building had a history of subsidence (i.e ground movement) or whether you specified the fault as slight structural movement of the wall due to the reasons you gave and that a structural engineer will be contracted to design works to stablise the situation and give an appropriate warranty which may be more easy to get insurance for than true subsidence.

Hope this helps, kindest regards, David Aldred independent damp and timber surveyor.

Oscar_The_Grouch

Hi Allywag

You mention a leaking drain softening the ground. This could cause subsidence (see David's first line above) and you would have to disclose that to any future insurer. In your position, I would be tempted to write a letter to the surveyor who completed your initial report asking "has the property suffered from subsidence, or is the damage solely attributable to the roof spread?". His response should not cost you anything as it is simply asking him to clarify something in his report.

The other alternative is to speak to the Vendor and ask them to present a claim to their insurers for suspected subsidence. Their insurers will appoint a loss adjuster to visit the property (and if you get any choice over the adjusters, I would ask for Merlin - all their subsidence adjusters are structural engineers and they will give you a free "mini report" on the cause of damage). The loss adjuster doesn't cost you or the vendor anything and the £1,000 excess is only payable if any corrective work is required.

The advantage of this latter course of action is that if they do attribute some of the damage to subsidence, then the insurance policy should cover the cost of repairs without you having to put your hand in your pocket (other than the excess if you agree to pay that for the vendor). The insurance company should be willing to transfer the insurance and claim in to your name part way through, so the sale of the property does not need to be held up.