subsidence and insurance

steadfast123

I am hoping someone can offer some advice regarding thissituation I have found myself in.
I will try and keep it concise:
-bought my house in 2007 (1900 end terrace) with only themortgage valuation survey (first big mistake)
-re-mortgaged in 2009
-Both surveys mentioned evidence of movement which was long-standingand non-progressive and the second survey states that the likelihood of furthermovement seems remote.

A week and a half ago I noticed fresh cracks in the cornerof the lounge ceiling and the cornice. Iam concerned about my insurance policy as when I took it out (2010) I arrangedthe policy over the phone as due to previous movement it is impossible to do itonline. I explained the situation to the advisor who said that as the wordingon the valuation was ‘long standing and non-progressive’, he could offer me aquote and policy. Since these new cracks have appeared, I have become veryworried about the fact I have nothing in black and white to prove I had thisdiscussion with the advisor.

Also, I have had a structural engineers report to find outthe exact situation (he believes it more than likely that neighbours trees arecausing slow-progressing subsidence). He informed me that approximately 40-60years ago a ‘tie-bar’ was put in my house, which I didn’t have an awareness ofbefore. I have since checked my surveys and the tie-bar is mentioned in thefirst one. Obviously I’ve never known what this was- and can’t believe mystupidity in not being more on top of things. I suppose being a FTB and havinglittle knowledge of houses/homebuying, I didn’t realise the significance ofthings. Anyway, the tie-bar is something I haven’t told the insurance companyas I wasn’t aware of it myself until a few weeks ago.

My questions are;

Does anybody know what stance the insurance company arelikely to take if I put a claim in. Will they try and make out that I haveintentionally not disclosed information and therefore void my policy?

If my policy were voided, what would the implications be?For getting more insurance, (after the issue is resolved), and would it affectme getting car insurance? Would the mortgage company be immediately notifiedthat I had no insurance and repossess my house?

If I leave the insurance company out of it, and pay for anywork that needs doing myself, after waiting a length of time then having areport stating that the issue has been resolved, how likely is it that I willbe able to obtain a new insurance policy?

I know I have been incredibly stupid and naïve… however Ibelieved I was being completely honest with the insurance company at the time Itook it out, and thought I had arranged a policy that was valid. I’m justworried that if they don’t have a record of my initial conversation with theadvisor and it they don’t have a recording of the original call I will havenothing to prove I disclosed anything.

Apologies for the long post.

Thanks

huckster

Calm down.

Before you had the structural engineers report, did you know about any subsidence issue ? If not, then you have done nothing wrong.

Just tell the Insurers that following a few cracks appearing you had a structural report done and it appears there may be a subsidence issue. They will arrange loss adjuster as appropriate and you will then have discussions about what the way forward is.

What you don't do, is start telling the Insurers you have made mistakes. From what you have said, you have done nothing wrong, so should not create that impression with Insurers. Long standing and non progressive movement appearing in a previous survey, is pretty standard stuff.

*Scarlett

If you took the policy out in 2010 over the phone, it is more than likely that the insurer will have a recording of the call - they are required to keep recordings for several years.

Some companies want to know about any subsidence that has EVER occurred, some only want to know about incidents within a certain time period, eg 20 - 30 years ago. So if the issue was 40 - 60 years ago that may not affect your policy. Check the assumption questions on the insurer's website or your policy docs.

In any case, you have answered any questions to the best of your knowledge which is all that they can ask and if you were not aware of any issues at the time you have done nothing wrong.

Even if you don't proceed with the claim, you will still have to declare this to future insurers and may have trouble getting cover with the mainstream ones depending on the remedial works done, cost, likelihood of future issues, etc.

With tree root damage they will probably want to know if the offending trees have been removed, any other trees witin influencing distance, arboreculterists report.

Some will consider but you might need to try a specialist - maybe http://www.homeprotect.co.uk/home-insurance/subsidence-insurance.aspx

steadfast123

Thank you for taking the time to reply. After receiving advice from here and another site, I have decided to make a claim and hope for the best. I gave the insurance company all the information I was aware of. I know that the worst case scenario would be very bleak for me, but I haven't intentionally done anything wrong so I'm just going to have to cross my fingers that it turns out ok.

Thanks for the advice.