Buildings Insurance Subsidence

tillson

Hello, first time post here. Sorry it is so long!

I am currently being fleeced by my buildings insurance company and am finding it impossible to change insurer.

Three years ago, cracking started to appear in some of the walls. This was put down to trees and vegetation extracting too much moisture out of the clay beneath the foundations causing movement. The trees and vegetation have been removed, the damage repaired and everything has been fine ever since. Not even a hairline drying crack in the plaster.

The trouble is, the insurers (Britannia Uniguard) have been hiking up the policy costs each year. I am currently paying nearly £1000 for buildings and contents. They classed the claim as subsidence and consequently, I can’t get anyone to give me an alternative quote.

It seems a bit harsh as the area in which I live is not prone to subsidence and the cause of this isolated episode has been identified and removed. It seems like the Britannia know they have me by the balls and are taking full advantage.

I know I can move the contents part of the policy to another company, but as yet don’t know how much that will save.

Has anyone had a similar experience and can offer any advice on how to obtain alternative insurance in these circumstances?

Thanks

Tom

jonesMUFCforever

Don't know if this is possible or even cost worthy but have you tried asking a surveyor to have a look at your property to see what they would say. You could then use this report as a bargaining tool.
Just out of interest are you living in an area where subsidence is prevelant?

tillson

No I don't live in an area prone to subsidence. The house has stood for over 120 years without a problem. It is just that the trees and bushes grew too large and extracted all the moisture from the clay. According to the structural engineer, 2003 was a particularly dry year and the trees started extracting moisture from a greater distance. Since they have been removed everything is stable again. Even with the dry summer we are currently having.

It seems like the insurers want to get this type of thing classed as subsidence as they get the £1000 excess on the policy and they know it is almost impossible to move companies. Hence they hike their premium costs.

I imagine I'll just have to live with it.

Thanks

Tom

jonesMUFCforever

No I don't think that you should!
Get a decent broker to dig around for you.

Astaroth

It is of cause possible to get home insurance without the subsidence aspect but this will be a problem if you still have an outstanding mortgage on the property.

Do you have a copy of the surveyors report/ repair documentation from the repair works? Some other insurers may be willing to touch you but will often both load the premium due to the risk and secondly apply a larger excess to subsidence claims. You will need to get the quotes over the phone and speak to a technical underwriter who wont be able to give a yes immediately over the phone as they will want to review the reports etc before deciding the risk.

tillson

I have the original structural report into the cause of the problem, ie trees and other vegetation in the proximity of the effected area. I also have a certificate from the structural engineers stating that the cause has been removed and that repairs to the house have been completed in accordance with their recommendations.

I can understand insurance companies being a bit cautious if the house was in a mining or quarry area where further movement was likely, but this episode of subsidence has been caused by a factor which no longer exists. It seems as though they see the word subsidence, and run a mile.

Anyway, thanks for the tips. I will try a broker and see what comes back. I will also look into moving the contents insurance to another company, but I suspect that the bulk of my £985 annual Britannia premium consists of Buildings cover.

Regards

Tom

Debt_Free_Chick

Definitely try a good local broker. They should speak directly to an underwriter at a new insurer, who will be able to price on the facts ... and not the hype of so-called "subsidence".

HTH

mattymoo

At the end of the day though you have suffered a subsidence incident. Clay type soils are the most prone to movement as they expand and contract according to their moisture content.

Subsidence is the act of movement and related cracking etc.
Causal factors include mine workings, pile driving operations, proximity to trees / bushes, proximity to river banks, poor quality foundations, properties built on sloping sites and collapse of underground services.

Unfortunately most phone / internet insurers operate a FIFO type policy. This is not a true technical term but it essentially means "Fit in or F off" - you either meet their criteria or they will not quote. Previous subsidence claims put you outside their criteria.

As others have suggested, a good local broker may be able to help. Avoid the national chains though.
However, your property has already suffered subsidence due largely to the soil type. The repair you mention appear to be cosmetic only - repairing of the cracks etc.
It would be a very brave underwriter indeed who wrote this type of business at normal rates and terms. Expect hugely loaded premium and increased excess (over and above the normal £1000 subsidence excess).

jstallan

Try Norwich Union direct... We have found them to be very helpful and competative.