How can we tell if Vendors claim re: subsidence has been resolved?

acreed

Dear Forum

I have found some similar topics but nothing which quite answers my questions, so here goes.

I have also posted a similar thread on the House Buying forum but think I ranted a bit.

My wife and I have had our offer on a bungalow accepted. The Vendor noticed some cracking under a rear window after his mother moved out of the house and had a structural engineers report done. He then contacted his insurers.

The Vendors insurers sent someone out to view the cracks, and the report and they sent the following letter (anonymised):

“We refer to our recent meeting and confirm our appointment on behalf of your Building Insurers with regard to your claim for possible subsidence. Following our visit to your property, we report as follows.

We were shown the crack damage located adjacent to the rear right hand corner and front left hand corner of the main property. From our visual inspection we tend to concur with the observations and conclusions drawn from the Engineer's Reports and note that the damage appears to be historic in origin and may have resulted from longstanding settlement. We would also concur with their recommendation to carry out an inspection on the rainwater drainage pipework located adjacent to the rear right hand corner and front right hand corner of the main property and to carry out any necessary repairs. We also recommend that the crack damage is repaired which will in itself act as self monitor should further movement occur but we feel this unlikely.

We have provided your Insurers with a report highlighting the circumstances surrounding the claim and concluded that on the basis of our inspection, an insured peril such as subsidence does not appear to have operated. A claim cannot, therefore, be accepted under the terms of the policy at this time. However, we see no reason why insurance cover could not be continued with any respective new owners subject to a satisfactory proposal form being accepted by Insurers.

We are now in the process of closing our file.”

We initially understood that there was no outstanding claim on the property and hoped that we would be able to reinsure with any one we liked, however, our surveyor has suggested that we need to keep on insurance with the Vendors insurance company which I am not entirely comfortable about.

We contacted the Vendors insurers who confirmed that they would insure us (because they are obliged) but that we needed to get “the claim” signed over to us and ensure all repair works were completed within 28 days of the completion date. We were not aware that there was a claim outstanding and the Insurers would not tell us what repair work is required as we are not the policy holders.

We have had sight of the initial engineers report (but we do not have a copy to rely on as we did not pay for the report) which mentioned certain repairs. One thing we did note was that the report suggested that the cracks be repaired using a “Brik Bond” method. The Vendor proceeded to have the cracks repaired before our surveyor got out to the house; but not using this recommended method.

I have a few questions:

1) How can we find out if there is actually a claim outstanding;
2) How can we find (reliably) out what repair work is needed;
3) How do you get a claim “signed over” – our solicitor does not seem to know;
4) How can we know if the repair work already undertaken by the Vendor is acceptable to the insurers;
5) Will we be stuck with the current insurers for ever, even though the reports seem to state that there was nothing wrong?

In reality, should we be forcing the Vendor to fully resolve the claim before going any further and, if so, how can we get assurance that this has happened when the Insurance company can't talk to us?

Thanks Al

Astaroth

1) Get your solicitor to ask the vendor

2) as above

3) no idea as I dont understand what they mean by "signed over"

4) As one but asking for a copy of the final inspection report after works have been done

5) If there is a subsidence claim then basically yes... you can go else where but wouldnt have cover for subsidence which would probably invalidate your mortgage.... though your mortgage provider may be a second option

6) It all needs to go through your solicitor and they will add conditions to the sale etc that things are resolved/ documents provided etc.