Refused Buildings Insurance as High Risk!!

slc21

Hello

I have had contents insurance with M+S for many years and been very happy. When I went to renew today, I was asked if I'd like a quote for Buildings too. Ever interested to get the best deals possible, I agreed.

To my horror, I was told that AXA who underwrite both buildings and contents policy would not insure me for buildings as I was in a "high risk area". When I queried this, I was told that they acquire their data from the Environment Agency and other such sites and that my postcode was at high risk. It took some time to establish that they were talking about subsidence and not flooding (I checked the EA maps and I am NOT in a flood risk zone at all) Now having lived year for 20+years, I am sceptical of the accuracy of any "subsidence" data. We are not a big community and everyone pretty much knows everyone else. I know of no instances of subsidence in the village at all ! When I put this to the customer service rep, I was told that our postcode had likely been classified as high risk because of an unprecedented number of claims.

I then checked my contents cover and found that I am obliged to declare if I am in an area at risk of subsidence. So I called M+S back and queried why my Contents application had been accepted if the same conditions applied. More importantly, would I be denied any future claim given that the statement of fact on my contents insurance stated that I was not living in a high risk area? It took some time to get them to see that I had lost confidence in the fair application of "conditions" on my Contents Insurance given that AXA, the underwriters, had just informed me that I was uninsurable for buildings. I have asked for written confirmation that their decision on my status for buildings will not affect any future claim for contents.

Meanwhile, I am in the position of being legally obliged to declare that I have been refused insurance when making any applications elsewhere and of wondering who on earth decided I was high risk of subsidence and why!!

Out of interest, I googled "refused buildings insurance" and spotted some specialist insurers willing to insure me when others wouldn't.

Underwritten by... you guessed it...

AXA.

Thought I'd run it by the forums to see what others make of it all?

huckster

You have not been refused Insurance. They just would not quote you for Buildings.

Just look for quotes elsewhere online or speak to a local broker.

The chances are that Axa have had a few Buildings claims in your area and don't want to Insure further properties. It could be anything, from a property that has had subsidence due to trees being planted too close to the building or properties flooded due to a drainage issue.

System

huckster wrote: »

You have not been refused Insurance. They just would not quote you for Buildings.

.

This is a distinction that often comes up, especially with regard to motor insurance. Can someone please explain exactly what the difference is?

You apply to an insurance company for a quotation and they refuse, saying you are too risky. Why is that different from being refused insurance? How would it be possible to be offered a quotation but not insurance?

lisyloo

Can someone please explain exactly what the difference is?

If they simply do not provide a product for your car/house then that isn't being declined.
If they will not insure YOU because perhaps you have a conviction or too many claims then that is a decline.

slc21

Thanks for your input everyone.

I was told they would not insure me as my home was in an area of "high risk".

After much to-ing and fro-ing, I was told that my postcode was defined as in an area of high risk for subsidence and land shift. News to me and anyone living here! When I asked what data they had consulted to establish that, they first said "the Environment Agency" and then "we use lots of different sources".

I mentioned this to several people in my street who share my postcode. They too are flabbergasted at such a random thing!

I have personally never made a single claim on my buildings insurance.

My main issue with this is that I still have contents insurance with M+S and the underwriters are the same.. Axa.

On my latest documents for contents, it states very clearly that I have declared I am not in an area of high risk of subsidence or land heave (exactly the same phrasing as was used to refuse me buildings insurance).

I rang M+S to inform them that their underwriters were informing me I was in a high risk area and they said that it would be fine as I wasn't when I took out the Contents! My dilemma is that I have lost all confidence.. if I were to need to claim on my contents, you can bet your bottom dollar Axa would use the "high risk area" clause to create an issue!! Hence, I have asked for written confirmation that despite refusing me buildings, they are happy to pay out should I make a contents claim.

I have today found an alternative insurer for Buildings who was equally appalled and is at least willing to take us on thank heavens.

My gut feeling is that I should ditch M+S for Contents now but I am waiting to see what their letter brings as I face cancellation charges otherwise.

gillipeter

I am trying to get insurance for buildings and contents. I have tried dual policies and seperate ones.

2 issues here,

some insureres won't look at bulildings because of our postcode, which serves the whole village, saying we are in a flood risk area, but we are at least 1 mile from any water and at the highest point in our county!!


we have made 3 small claims in the past 3 years £90, £50 and £400 and most companies will not quote us at all for contents!!

our local broker has acheived only 1 manual quote from one company for both buildings and contents at £838, ( we live in an alarmed, well maintained, 4 bed detached house)

can anyone help? what is the point of insurance if you can't claim and become uninsurable?

huckster

Try Bureau Insurance Services or Home Protect.

For information, avoid making smallish claims of say less than £200. 3 claims in 3 years, would be considered excessive by many Insurers.

Faith177

M&S did the same to me last September.

I missed my renewal by 1 day when I rang to get a new quote they advised me that I was not eligiable for insurance as my area is classed as "high risk".

Same as with yourself this was news to me as I have lived in my home for 26 years with no issues in the surrounding area.

I asked why I had been offered renewal if i was "high risk" they advised that that is their procedure for areas that change whilst the person is insured with them.

I believe as someone else stated if the insurance company has a bad record in that are normally just based on the first part of your postcode (the sector) they will just blank that area completely

slc21

Thanks everyone. A year on.. and things are no better.

I was obliged to make a small claim on my Contents insurance for a visitor's glasses. Total £129. Now ordinarily, I would have just paid that direct to my visitor but the situation was tricky as the person concerned has been unwell and must avoid stress... and was stressing that it was too much for me to pay. Basically, he could only be reassured by telling him that my insurance covered it.

To cut a long story short, the claim went through no problem at all (have to say M+S were brilliant there). I have premium protection so there would be no rise to my Contents premiums. Great! Or so I thought...

I have Buildings insurance with another provider LV (formerly Frizzells) whom I have been with for 20+ years. I cannot switch because of this arbitrary "postcode" ruling that means that many underwriters will not cover "my area" full stop. I could theoretically get a deal on some cheap policies.. but the problem there is that the maximum sum insured does not adequately protect the rebuild cost, so effectively I would be underinsured (and that has implications for any claim!!)

My Buildings came up for renewal and there was the line about household claims in the last five years. Hmm.. "household". I advised the assistant of the minor contents claim with M+S. Would you believe that LV have the gall to up my Buildings Premiums by a whopping £46.38? Over three years, I will have to pay £139 in increased premiums to a different provider for a different type of insurance! I have taken it up with them, but they refuse to budge. Apparently it matters not a jot whether I claim for £100 or £10,000 ... a claim is a claim. And they wonder why less honest folks decide to bump up their claims when something happens???

Am furious, frustrated and longing for the old days when the local insurance man used to pop around to check you hadn't sunk into a chasm overnight ...

I used to gawp at news stories where some poor soul had lost everything and had no insurance. I know now that in many, many instances it is not for the want of trying to get some!!