Argh! We own an underpinned house...

blondie4281

I need some advice desperately. We own a 2 bed end terrace which we bought in 2003. We realised there were problems with it in 2006 and it was eventually underpinned by the NHBC in 2009. However, we now can't get anybody to insure it. Our current insurers have realised that they should not have approved our insurance (because the NHBC paid for repairs and not them) and therefore say they will not renew it in September. I can't seem to get anybody to even quote on it - even with a structural report they say that at least 3 years has to pass. It is because it is built on clay soil and surrounded by trees (covered by preservation orders), so the problem which caused the subsidence cannot be got rid of. We want to sell but without insurance it is not mortgagable and a mortgage is going to be another issue even if we get insurance!

MegaMiniMouse

blondie4281 wrote: »

I need some advice desperately. We own a 2 bed end terrace which we bought in 2003. We realised there were problems with it in 2006 and it was eventually underpinned by the NHBC in 2009. However, we now can't get anybody to insure it. Our current insurers have realised that they should not have approved our insurance (because the NHBC paid for repairs and not them) and therefore say they will not renew it in September. I can't seem to get anybody to even quote on it - even with a structural report they say that at least 3 years has to pass. It is because it is built on clay soil and surrounded by trees (covered by preservation orders), so the problem which caused the subsidence cannot be got rid of. We want to sell but without insurance it is not mortgagable and a mortgage is going to be another issue even if we get insurance!

How old is the house?

Does not the NHBC guarantee system last for ten years?

MMM

blondie4281

Long story but to put it briefly, it was built in 1991. The NHBC started investigating subsidence problems there in 1994, work was done in 1998 and 2001 and their guarantee extended to 2007. The people who sold to us did not tell us this history when we bought it. So it has taken us 5 years of digging to find out this much. We have tried to sue the vendors with no success, as they declared it to their solicitor (just) but our solicitor failed to tell us (unbeleivable I know). Now we are suing the solicitors but they are adament we only overpaid by £8k in 2003. It is due to go to court in the next 8 months. Legally our current problems with insurance and mortgages are not relevant apparently.

blondie4281

Just wanted to bump this up - please help!

CloudCuckooLand

Get legal advice. Talk to the Law society. To maximise what you can get out of the solicitor who fouled up. Its not about what you overpaid. With that sort of information you may well never have bought it.

There will be specialists who may take it on, but at a price...

Eton_Rifle

This sounds so awful for you.

I'm just wondering if you've tried going through Adrian Flux broker for the insurance? They would be my first thought (and I use them myself for a particular house I own that has a difficult roof to insure.)
I forget the name of the insurance company they use but it deals with thatched roofs, underpinning and similar period property issues.

need_help_please_2

The underpinning excercise should have cured the subsidence problem as the "new" foundations should have been dug to such a depth as to avoid the soil which was being desicated.

Despite this, it will no doubt be difficult to obtain insurance, although as a first step, it may be worth complaining to the insurer and taking the complaint to the Financial Ombudsman Service, as it may be able to consider the fairness of the insurer's decision to avoid / not offer renewal.

Alternatively, there are many insurers out there willing to take that extra risk of an underpinned property. However, it will cost more and will likely take the involvement of a broker to arrange the policy. It may be worth contacting Ageas Insurance or Towergate.

muskoka

Just googled & found these - http://www.adrianflux.co.uk/underpinned/

I'm sure theres other co's out there too

flora48

Try Woodstock Insurance, they insured my house for a little over the normal cost.

vivatifosi

blondie4281 wrote: »

Now we are suing the solicitors but they are adament we only overpaid by £8k in 2003. It is due to go to court in the next 8 months. Legally our current problems with insurance and mortgages are not relevant apparently.

What a horrid situation blondie, I do wish you good luck.

I can understand the situation regarding the solicitors. I sued our surveyor for failing to pick up on faults with our house and they would only allow a claim for diminution of value, I couldn't claim for the price to put right either, it isn't the way such claims are worked out. Did you go for a full structural? Can you also sue surveyor?

silvercar

blondie4281 wrote: »

Legally our current problems with insurance and mortgages are not relevant apparently.

Once you win your case, they would be relevant in assessing the damage. An uninsurable house is worth less than an insured one, not least because you won't be able to get a mortgage without insuring it.