home insurance - subsidence or not subsidence?

sheelaghh

In 1990 we took out a mortgage and the surveyor noted "minor historical settlement" around the chimney breasts. About 3 or 4 years later it became clear that the chimney breast in the living room had definitely moved downwards and we tried a claim against our house insurance for subsidence. After a year of monitoring and surveys, the insurance company refused the claim because it was not subsidence but just settlement as noted in the original survey. Our surveyor explained that the chimneys had not been tied to the external wall when the house was built c1902 and as the road we live on is now a busy main road, the traffic thundering past had just caused some slight slippage. We decided that we would go ahead and remove the chimney breasts and the chimneys as they were not in use and since then we have never had any concerns that the house or any part of it is in any way moving, but still I'm held to ransom over the past claim. Most insurance companies refuse to insure without an up to date surveyors report to say that there is no further subsidence ....hang on it wasn't subsidence, but minor historical settlement!! And the insurance company that we have found has loaded the premium by about an extra £130! How long do I have to go on admitting to the previous claim ? When you apply for house insurance it does say have you ever had a claim for subsidence and my broker says that I must say yes even though it was refused Anyone got any advice please?

felicity1

Our house is completely underpinned. We took over the buildings insurance when we moved, no problem, but we have found time and time again huge increases in premiums (like 65%) for no reason. We did raise a complaint and the provider did bring the premiums right down, they always maintained the premiums were not loaded due to subsidence history but I find it hard to believe.

We even struggle to get contents insurance at a fair price - this year's premium has risen over 85% (we have had no claims). I am currently seeking advice from the British Insurance Association.

Your advice is correct, you do need to declare your home's history - in the event of a claim you would not be covered - I understand all information is shared.

Sorry I can't be more help, there are specialist firms out there but you may well have to pay a bit more.

huckster

sheelaghh wrote: »

we tried a claim against our house insurance for subsidence. After a year of monitoring and surveys, the insurance company refused the claim because it was not subsidence but just settlement

That was a mistake that most people make. If there are any movement issues, unless there is urgency i.e house falling down, you don't contact your Insurers straight away reporting subsidence. You should instead employ a structural engineer to provide a report and then proceed as they recommend.

Now in your case, it could well be that the structural report would not have been definative and would have recommended that monitoring take place over a period. You would therefore not have had much choice but to register a potential subsidence claim against your policy. In regard to the various surveys and monitoring, I am guessing that the Insurers must have paid some of these costs, but did not need to pay for any works ?

You have to declare that you had these issues and most Insurers will require a new structural report. With a satisfactory report, you will be able to shop around, but whether you will save enough to cover the cost of the report, I can't answer. What tends to happen with most Insurers, is that they provide a good first years premium with a 'new policy' discount and then at a renewal the premium goes up forcing you to shop around. In your position this is much more complicated.

There are brokers out there who might be more helpful e.g Bureau Insurance Services and Towergate.