Hellp needed urgently - Halifax about to cancel home insurance!

theowl_2

Hi,

On Friday I received a worrying letter from Halifax, my home insurers. It stated that they are cancelling my policy at midnight on 18/12/06 due to not receiving further information from me in relation to structural movement at my property.
The circumstances are that when I went to renew my insurance this summer, I noticed that my home survey I obtained in 2005 mentioned movement to my property. When I received the survey the subsidence was not a cause for concern as it 'appeared historic' and there were 'no obvious signs of ongoing significant movement noted to the structure'. Anyway I thought I should tell them and the bloke on the phone didn't think it would matter and would probably not raise my premiums, but he said he would have the underwriters get in touch with me.
The Underwriters asked for evidence and I faxed the relevant bits of the survey to them which stated what I mentioned above. Weeks later I received another letter from the underwriters stating that they had not received any response from me, so I then sent the evidence by recorded delivery. Then, on Friday, I received a cancellation notice stating 'You have disclosed that your property had previously suffered from structural movement, we have asked that you provide us with further information relating to the above, to date we have yet to receive this.' And 'The change in your circumstances now means that due to our current underwriting criteria, we are unable to continue offering this insurance policy'.
I was fuming, thinking that somehow, again, Halifax had not got my correspondance. I had to wait until today to call the senior Underwriter and when I did, I told her that I had twice given her what she had requested. In fact, I also faxed it to her again yesterday so it would be on her fax maching when I called her. It was.
She got onto her computer and surprised me by eventually accepting that she had received the documents I had sent. She then dropped the bombshell by stating that on page 5 of my survey (I sent them two pages as both referred to the subsidence) it said 'Cracking was noted to the head of the bressummer both internally and externally over the front bay requiring further investigation', and that on the basis of that, namely that I had not provived them with proof of this 'further investigation' the policy was being cancelled. This further investigation, she went on to explain, would mean a full structural survey...
I was shocked. They had given me no indication that they required this, they had merely implied that they had not received my mailings. I also felt annoyed as the information she had based her decision on, was not, I felt, something she needed to know about. All she was supposed to have was the subsidence information and it was because she read about that other stuff that she made her decision. I mean, I needn't have given her that info - how frustrating.
I am sure a full structual survey would cost loads. I told her all this and she was adamant that nothing could be done unless they received a full structural survery.
I can't afford that, that is something I might consider when buying a house but not for the purpose of getting insurance! I also do not want to have my insurance cancelled as I think that would affect me in the future.
I asked to speak to her supervisor. She said she didn't have one - she was the senior underwriter. Eventually she said she would get her manager to call me back later.
What should I do???

Astaroth

Assuming that the policy is to be cancelled tonight at 23:59:59 then possibly the best option would be to cancel the policy yourself now otherwise for every future insurance policy you buy (motor, home, travel etc) you will have to declare you have had insurance cancelled. If they cancelled it at 00:00:01 this morning then obviously it is a bit late for that now.

Buildings that have suffered movement in the past are a nightmare to insure... who did you insure with prior to Halifax? given the survey was done last year I assume you were with someone then? did you declare the "problem" to them?

In generality it is only really insurers that have insured the property prior to the movement that will continue to do so without structural engineers reports... so either your last insurer or the previous owners insurers may be your best option.

theowl_2

Thanks for the reply. It's midnight tonight thankfully. I have just spoken to the manager - he has extended my policy by 30 days on the basis that I obtain structural reports on the following two aspects:
1. The cracking to the head of the bressummer both internally and externally over the front bay.
2. Cracking over the rear entrance doors serving the kitchen and external stair.
Does anyone know how much this will cost or who I should use?
In answer to your points I have always been with Halifax but did not mention the subsidence when I first took out the policy as it did not seem a cause for any concern. It was only when I renewed that I mentioned it and even then I thought they would not care, and neither did the guy on the phone.

regularsaver1

I think the undisclosure at the beginning might be biting you now - always worth mentioning when taking a policy.

Hopefully your survey will be ok