Transfer of existing buildings insurance & cracking

Bea787

Hi all, please help ...

May be buying a property which has some cracks on the external walls. Structural engineer was commissioned to investigate - recommended drain survey and minor repointing and the transfer of the buildings insurance to the new owner. Drain survey concluded some small repairs but not linked to the cracking. Home Buyer Surveyor also adamant that insurance policy should be transferred to offer me protection as a cautionary measure. He said it is very common practise. Vendors rang their insurer who 1st said they would transfer the policy, then said they wouldn't. I just rang the insurers and posed the question in theory and they said they had never heard of the notion of a policy being transferred to a new owner and I would need to take out a new policy.

A few questions I'd really appreciate help on:
1) I am at a loss to understand the insurance issue - is anyone familiar with the transfer to a new owner - anyone ever done it/if so how? Would I be expected to stay with this insurer always and not have the option to shop around at renewal? Struc eng said just keep it for 1st year but Surveyor said keep it for good. Sol said could affect re-sale if new buyers can't have freedom to shop around for insurance. I don't want to be tied in either.

2) Is there a phrase that would satisfy insurers/future mortgage lender valuers regarding the cracks that I should be seeking for the structural surveyor to put in writing? His initial report was non committal on the basis of advising a drain survey. Now that has been done he would charge more to put in writing a further opinion. My surveyor says that the struc eng needs to say explicitly a phrase to satisfy insurers/mortgage valuers - something like the cracks are long standing and non progressive (but he wasn't sure of the exact phrase) and that it needs to be addressed to me in my name for me to be able to use it. If this will settle the matter once and for all it may be worth the extra cost but can anyone advise the correct terminology and how much one might expect to pay for this and even whether it is worth doing?

My main concerns are that I don't want to incur excessive building insurance charges and that when I come to sell new buyers will be able to get both a mortgage and buildings insurance.

Any help really welcomed. Thanks

teneighty

As you have already been advised, the Structural Engineer needs to provide his expert opinion on the cause of the cracking and likely remedial works required. That is what you paid them for.

If they have been unable to identify the cause then further investigations should have been recommended such as the drain survey. The engineer needs to review that survey and if the drains are not the main cause recommend what the next step should be.

The fact that they identified the drains as a possible cause suggests they suspect the cracking is caused by subsidence. Have they carried out investigations of the foundations and undertaken a soil report?

If it is subsidence that will obviously seriously limit your choices of insurer so could be time to walk away from this one if you are not prepared to incur more fees from the engineer.

cattie

If a property has had a claim for structural remedial work in the past, then you should always apply to the vendor's insurance company to take over the policy for buildings insurance.

However, there are some insurers and Halifax are one, who no longer allow such transference of a policy and the buyer needs to take out their own policy with the company. In this kind of case, once you market a property it is always wise to ask the insurance company to provide a letter stating that they will be happy to continue to insure the property for a new owner. This helps take away the worry to any prospective buyer that they won't be able to get insurance cover.