Subsidence excess......is there an expiry date on home insurnace policy

wdbamber

Hi All,

I am attempting to purchase a house at the moent. It has become a long winded purchase due to problems with the drians identifed by our home buyers survey. this has now been fixed by the current owners insurance company under a claim on ther policy. the problem has caused some structural movement, (our own structural survey describes as rotational movement and not subsidence).

The owners original insurance calim and subsequent investigation describes on their paperwork as "potential subsidence" and therefore when we requested a quote from the same insurance company they said there was an increased policy cahrge and additional £1000 subsidence excess to the policy.

I was wondering if this excess will remain on any house insurnace policy for this propoery for the rest of the properties life or whether this is time related (say 5- 10years), if there is no further movement/ and /or proven that not subsidence/ movement now drains have been fixed.

We have two structural report saying that the movement isnot a problem, but as you can tell there is obviuously a purcahse cost, house insurnace cost and possible resale implication should be buy the house.

We believe that the house is worth it! where we want to live and a long term investiment for us.

Any thoughts will the insurnace be always enhanced due to claim? should be ask fo money off asking price?

we fear that the owners will take it off the market and then re advertise and not disclose the problems that our survey has identifed.

Help!!!!

Thanks

Phelpsie001

From experience with insurance companies, you HAVE to delcare this issue as you know about it, or at least tell them the info about the issue. Therefore you will always have higher premiums/excess.

I'd always declare or else they may say you aren't covered...

My tuppence worth anyway

wdbamber

Thanks,

I have just spoken to the estate agent and they are hopeing to get the original claim title re worded to remove subsidence word from claim. would this make much of difference?

The original quote was with the insurance company dealing with the claim, should i try other insurnace companies? would they have details of the claim?

thanks

Richard_Webster

Is it a £1,000 subsidence excess (which is standard) or an extra £1,000 making £2,000?

Phelpsie001

I'd be careful trying to reword things...

Worse case: you buy the house, subsidence returns in a big way. You put a claim into your insurance company, who look at your insurance history and see that it was mentioned a long time ago. They could then argue that you should have had it fixed and either string the claim out, or deny the claim?

I am no expert, but I am very cautious with insurance companies due to alot of experience with them. They will find ANY angle not to pay ....

wdbamber

Sorry when i say re-wording i mean to check that the claim is for movement caused by subsidence or not. and confrim .

we await the owners update

kingstreet

As Richard asked. Is it the usual £1,000 excess, or is it another £1,000 on top making £2,000.

A £1,000 excess for subsidence claims is standard.

From Paymentshield/RSA schedule;-

In the event of a subsidence claim the excess is £1000.

wdbamber

Sorry for delay in replying, i have checked the policy quote and it seems to be only the single £1000 excess for subsidenec, which i guess is the standard.

The quote we receievd though is 3.5 times the current owners policy payment, (quote from same insurnace company) ? should we get a quote from another insurnace company? but won't i have to declare the drainage problem.

The main issue as i see is is the current owners initial insurnace calim referenecd "suspected subsidence" ....... we have 2 No structural reports saying yes there hs been movment but this is only related to the draiange which has now been repaired and internal decoration has been underataken. Does the Subsidence tag stay forever on the policy/ house. or does the work and reports undertaken mean that this should no longer be the case, and future premiums adjusted?

Help

Thanks

TB

wdbamber

we have asked the current owner to contact their insurnace company to discuss the "potential subsidence" referennce in light of findings during claim. Owner is dragging their feet, "unable to get through", although i got through straight away yesterday at first attempt. Although data protecetion prevents the owners insurnace company talking to me , as expeceted.

Thanks

Any advise apprecaited.

kingstreet

When I get something like this, I usually forward the reports to the insurer for an opinion before I apply. Sometimes they come back and confirm ordinary rates, sometimes further info required, occasionally a rating.

Could be worth a chat to a decent insurance broker before you get too much further down the road.

wdbamber

Thanks Kingstreet, we wre under the impression that we should stick with the current insurnace company for ease?

i'll shop around.