Problems obtaining home insurance due to existing open claim

connee01

Hi

Can anyone please advice of any insurance companies that offer home insurance due to the following circumstances;

At the end of 2010 our property suffered major damage due to frozen pipes and subsequent escape if water The claim has still not been closed due to the extent of the damage and we may not return to our home until the end of the year.

Our current insurance policy ends soon and we can't find anyone who will offer a policy which at least covers us until the existing claim is closed. The property is vacant and we are living in rented accommodation which was provided by our insurer. I have been warned that due to our circumstances the property may go uninsured until we can move back which is very troubling.

Any advice would be greatly appreciated

talulah25

Are your current insurance company not offering renewal?

connee01

Unfortunately my current insurer were taken over during the course of the policy and the new company are treating us as a new case and they don't want to quote. It's frustrating as I have never made an insurance claim-just my luck that when I do claim it's a huge case. I have spoken to nationwide as we have our mortgage with them. The claim will be dealt with and a drying certificate has now been issued but it's still going to take 2-3 months before we can move back. Once the claim is closed I have been told I will have no problem obtaining insurance. I just don't know what to do in the meantime.

Thanks

connee01

Thanks for your advice. I am a total novice when it comes to insurance claims and the whole thing has left me drained. It's been going on for nine months and it looks like there will be a period when our house is not insured. The problem is when I took out our current policy I did it online via a broker and ended up with a relatively small insurer. To be fair they have paid out a substantial sum already but it's taking so long. The broker renew insurance were the ones who told me today our current provider UGM would not offer a new policy. The only advice they gave was to contact my current mortgage provider,Nationwide as they would be more likely to offer a policy.

I dont know how much use getting in touch with the press would be. I need to close the existing claim and get my house back so I need to keep a reasonable relationship with UGM.

huckster

connee01 wrote: »

Unfortunately my current insurer were taken over during the course of the policy and the new company are treating us as a new case and they don't want to quote. It's frustrating as I have never made an insurance claim-just my luck that when I do claim it's a huge case. I have spoken to nationwide as we have our mortgage with them. The claim will be dealt with and a drying certificate has now been issued but it's still going to take 2-3 months before we can move back. Once the claim is closed I have been told I will have no problem obtaining insurance. I just don't know what to do in the meantime.

Thanks

Did you arrange the Insurance directly with the Insurers or via your mortgage provider ? If you arranged the cover via your mortgage provider, they would normally help negotiate arranging cover with the Insurers they use, as it is a condition of your mortgage that you have Buildings Insurance in place.

You mention that the current Insurers were taken over, but do the Insurers that are dealing with your claim still exist in any form ? Surely they would have many claims still open, subsidence risks, flood area risks. What is happening to all the policyholders who would find it difficult to arrange alternative cover ? I think the ABI (if they are a member) normally require the Insurers to consider policyholders that are in this position.

Not heard of UGM.

connee01

I have just been informed that my mortgage provider will not provide cover so it looks like my property will be uninsured for the period from 11/9 until the current claim is closed. I am thinking I should complain to the insurance ombudsman. The claim has been so poorly handled in terms of timescales. The drying certificate has only just been sent to us more than 9 months after the incident. It's been one delay after another

I have looked at my policy and it looks like Legal & General were underwriting the policy issued by UGM.

I wish I had taken far sterner action sooner but I have been far too naive in accepting what the loss adjuster told me in terms of how long the claim would take.

I am worried the house will be uninsured but I can't make someone insure me

olly300

connee01 wrote: »

I have just been informed that my mortgage provider will not provide cover so it looks like my property will be uninsured for the period from 11/9 until the current claim is closed.

You need to put in complaints first to:
1. Your current insurer about the claim taking 9 months and other problems.
2. Your mortgage provider (noting the section where they say you have to have buildings insurance) about their refusal to provide this for you. In the worse case scenario they will be asking you to pay a mortgage on a property that doesn't exist.

Unless you have already.

Send the complaints in via recorded signed for post and make sure the letters state the words "Formal Complaint" clearly on them. Keep your complaints as concise as possible and to one side of A4.

You then have to wait 8 weeks after complaining before you can take your complaint to the FOS and there is a large back log.

The address to complain is in your insurance policy document/mortgage documents.

I would also put in a complaint to the FSA about both companies not treating you properly after the 8 weeks/you receive proper replies from the insurer/mortgage company. The FSA can't take any action over your individual complaint but can tell the companies concerned to buck up their ideas. (Again they can take a while.)

I would write your complaint letters today/tomorrow and post them on Monday.

BTW the suggest to go to the press is a good one. As long as you don't mind being in the National Newspapers or on TV.

connee01

Thanks for everyones advice. It helps that people on this forum are so supportive. I have just sent a complaint by email to Davies Managed systems (the loss adjusters who are handling the claim and inet3 who are the company that took over UGM.

I had not considered that the complaint should be sent by post. The problem is I will not be able to send a letter until I get back to work on the 12th.

I blame the loss adjusters as they have delayed progress on repairing the house. The dryers were turned off for weeks at a time because of delays in authorising work. It's dragged on so much and I am really kicking myself that I did not act sooner but I was far to naive in believing we would be back in our house by now. I really don't understand the delays and it seems so wasteful. It's costing £700 pm to house us temporarily so you would think they would want it settled quickly.

Thanks very much for your

huckster

If the current policy and claim are being underwritten by Legal & General, I would suggest that you make enquiries with them. Don't just phone for a quote using the normal quotation line, as you will probably just be told they cannot quote etc etc. The won't bother to look into this, as the sales staff are just there to try to sell and not spend time looking into anything.

Send them an email and/or letter explaining the current situation, confirming that the current agency through which you have an L&G policy is no longer in business and you need to maintain cover with them, due to the current claim. Provide them with the name/address of current company, policy number and anything showing the policy is underwritten by L&G.

direct.gi@landg.com

Legal & General Insurance
PO Box 6984
Birmingham
B5 4BR

magpiecottage

Unfortunately water damage can take a VERY long time to sort out but withdrawing cover is unreasonable. However, the loss adjuster is the insurer's agent and it is the insurer you need to contact.

I suggest, if you have a fax (or a fax modem) you use that to take the matter up with the insurer.

If it is Legal & General, you can send it to 020 3124 2500. Do it today and they are likely to get on with it as soon as they open for business tomorrow.

poppydonut_2

I have read this thread with interest as I am in exactly the same boat as Connee01. Renew (broker) can't find me any company that will insure me after UGM's refusal to take on any home insurance (Insurer was Equity Red Star). My burst pipe was last Xmas and work is under way now but I won't be in till 8-10 weeks time. I told my bank Nat West but they do not insure any claims that have been open for more than 2 months. I asked the British Insurance Broker Association and they can't insure anyone with an open claim. I looks like I will be uninsured till the claim is finally closed. I will let you know if anything else happens.