Insurance and Subsidience, Movement and Settlement

mbaran

Hi,

I purchased a property in Jan 2009, and I purchased a buildings and contents insurance at the time. Since then I made no claims, and at the moment I don't have to make one. But I am growing increasingly suspicious about the validity of my policy with respect to claims against subsidence, movement and settlement.

I had a survey done before buying the property as every sensible buyer does. In this report, the surveyor observed minor cracks around the windows and doors, which he interpreted as signs of movement and settlement, and no signs that it was ongoing. When I enquired about this, I was told these were likely because of double-glazing installation. In the same report, the surveyor wrote that several houses in this area had suffered from subsidence. Furthermore, the environment search reveals that I am in an area (Beckenham, Kent) which was declared to have 'moderate' subsidence risk by the BGS (British Geological Society). Due to clay subsoils (which most of southeast has) and because of landfills in the area. My property is built in 1980 and it has never been directly affected by subsidence. Searches do not show any underpinning at the property or nearby.

Most insurance policy forms ask you these two questions:
- Has your property ever been affected by subsidence, settlement or movement?
- Is your property in an area affected by subsidence.

If I tick 'yes' for these questions (which is NOT what I did when buying the current policy because I wasn't this worried then), then the insurers will even reject to give any quotes. On the other hand I have also been reading that insurers will factor in the risk based on your post code in their quotes.

As you can see I am a bit concerned that in the event of a claim, my insurer will turn to me and say "You knew there was movement, and you knew that yours was a moderate risk area, therefore we can't cover you".

How can I avoid this from happening?

dacouch

They ask whether you are aware of any subsidence in the area or to the property.

When they ask in the area it is typically taken to mean in your road as it is not practical for people to know of properties outside their road.

The simple answer is to contact your Insurer and if possible send them in a copy of your survey. Once they have seen the survey and accepted it then there can be no disputes.

mbaran

Thanks for the quick reply. Would you say I should send them the environmental search results mentioning the 'moderate subsidence risk'?

Also, would the environmental searches reveal any subsidence damages in my area (in my road as you say)?

dacouch

They may well do, if your at all worried just give them a call go over it with them and if they want it send them the surveys. Get them to confirm it in writing assuming they say there are no problems so there is no come back should you ever need to claim or for when you sell the house