I bought a house 6 days ago and now its got subsidence - please help me!!

charlie_crabbesticks

Hiya,

Please can someone offer me some advice (any advice!). We completed on our first house purchase last friday and after moving in we noticed some rather large cracks on the outside of the house and also that the kitchen floor is sagging... We only had a basic survey with Nationwide and they never sent us a copy or mentioned there were any problems.
Anyway we got a surveyor to come and look at it and they think its fairly recent subsidence.. on requesting the copy of our house survey, its been noted that the building has had some structural movement but its a long time ago and no risk (I don't know how someone can tell this is in a half hour survey!!??)
So, today we rang our insurance company (Co op) and told them the situation, rather than help us they have cancelled our home insurance! So now I have a subsiding house and no buildings insurance. I've tried ringing Nationwide (our mortgage company) but they don't want to know.
What on earth can we do now?? Does anyone know if co op are allowed to just cancel out insurance?
All advice will be gratefully received
Thanks

spannerzone

What reason did the CoOp give for cancelling their insurance?

I'd also worry why previously noted subsidence wasn't picked up by someone during the purchase process... usually it would set off alarm bells by lenders wouldn't it!?!

iamcornholio

charlie_crabbesticks wrote: »

So, today we rang our insurance company (Co op) and told them the situation, rather than help us they have cancelled our home insurance!

That's a classic. LOL

You need to expand on that a little. But no, they can't normally do that

Subsidence it not that big a deal as it is portrayed. And your surveyor should be telling you what is the most likely cause - if it is indeed subsidence

Unless you live over a mine area (which your conveyance should have detected), then the two most common causes are leaking drains or near-by large trees.

Sort them out and the ground stabilises and in most cases the cracks close up

baldelectrician

Is this thing not picked up on the home report / sinlge survey?

It depends where you are, but in Scotland you usually have a week to pick up problems at the previous owners expense- unless you knew about them and chose to continue

macman

Certainly not so in England-once you have exchanged, it's your property and your problem.
A home buyers report is simply a cursory inspection (usually done by a building society to ensure that the value covers any mortgage advanced on the property). It might well not reveal minor subsidence, depends how visible the problem is. In this case, presumably not very, or the OP would surely have spotted it when they did their own inspection?

silvercar

Even a mortgage lender's valuation carries some liability. If there is recent subsidence that the valuation didn't spot then that is a big omission.

I think you need to contact your lender again, if necessary make a complaint to get their attention.

Not surprised that co-op cancelled the insurance, subsidence doesn't appear in 6 days, so it was pre-existing and therefore should have been declared. Not doing so makes the policy null and void. I'm not saying you misled the insurer, just that the subsidence must have been present.

Find out who the previous owners insured with, as they should be willing to continue cover. You need to get cover in place as it is a condition of your mortgage.

Post on the house buying board for more advice.

I would also be seeking the opinion of your solicitor, who would also have acted for the lender when you bought.

ormus

assuming you didnt tell the co-op the whole truth about the property, they have every right to cancell your insurance policy.
they gave you a price based on the facts that you gave them. those facts turned out to be incorrect.

the insurance premium is based on the risk. the premium on your house needs to increase, a lot. obviously.

System

There is something missing here. Surely you viewed the house before buying?

some rather large cracks on the outside of the house and also that the kitchen floor is sagging.

would have been noticeable.

ultramagnetic_commuter

If you "only had a basic survey with Nationwide and they never sent us a copy" then it sounds like this was the compulsory valuation inspection for *Nationwides" benefit, not yours. As I understand it, you have the option to pay more for a homebuyers report which would certainly have picked this up. I was always under the impression it was good practice to upgrade this inspection as it gives you someone to go back to should something later emerge.

It does seem unfair that your insurance would be cancelled - they must have said why?

ic

To me it reads that the agent you spoke to may have misunderstood you, and they thought you were saying that the subsidence was known about at the time you arranged the policy (rather than you've had someone after the policy started who has confirmed the movement is recent). All buildings policies I've taken out have always asked something to the effect of "are there any signs of subsidence, or has the house ever suffered from subsidence?" If you answer no, when in fact the answer is yes, your policy is technically null and void - as you've found out. Watch the latest Watchdog on iPlayer - this was covered yesterday, where insurers misunderstand what is being said in a conversation and jump to a conclusion - typically cancelling cover, recording the wrong information on shared databases and upping premiums.

I can however understand why an insurer would be suspicious about a claim arising for subsidence within days of the policy starting.

gratefulforhelp_2

Can you not get a copy of the valuation and forward it to co-op asking that they reconsider (mention watchdog maybe).

Also it is good advice to give the conveyancing solicitor a call.

How thorough was the survey you had done after moving in, and what remedy did they suggest?