Home insurance & subsidence

patricia..xx

Just wondered if anyone can help clarify what I already know, but hopefully prove me wrong.

A house we are hoping to buy had an insurance claim for subsidence 8 years ago, caused by a collapsed drain. I have all the reports and documentation which indicate that the damage and repair work are about as minor as subsidence can be - £1,500 of work to repoint and fill cracks, plus a bit of lateral support to the wall. No underpinning.

I know insurance is a risk averse industry, but given it clearly is a 1 off problem, it seems no one will insure the house fully, even though it has been insured over the past 8 years.

I have spoken to 3 or 4 big insurance companies, who will not even pass the information to the underwriters to make a decision. The company through whom the claim was made (not the current insurer) would give a quote only if we have a full survey done now and every year to check the issue has not returned. Same goes for specialist subsidence insurers.

The current insurer said they have tightened their policy and where previously the underwriters would review the information, now they automatically refuse. They have agreed they will continue to insure the house (at a reasonable rate I might add) but they will not insure for subsidence if it were to occur in that part of the house again, whether or not it was caused by tree roots, hot weather or the drain again. Our mortgage company will not lend if we can only get insurance on this basis.

Have I missed something with the risk on this? £1,500 of minor work means the house is screwed forever for insurance purposes, unless you pay for a £200 survey every year and get specialist insurance. If this is the case we will not proceed but it seems mighty unfair on the current owners, who have proved that they have changed insurance company twice and not even had increased premiums - what has changed in the insurance industry since 2010 which has changed this.

Any advice? Or at least confirmation that I have exhausted every possibility before we start looking again for a different house.

rs65

patricia..xx wrote: »

but it seems mighty unfair on the current owners, who have proved that they have changed insurance company twice and not even had increased premiums - what has changed in the insurance industry since 2010 which has changed this.

I can't think of anything that has changed. I'd be surprised if they had cover on normal terms with a subsidence claim 8 years ago.

Have you tried their previous insurers?

Best to use a local broker who you can to talk face to face with copies of the paperwork. Search here - http://www.biba.org.uk/

my_names_dave

A bit harsh by the current insurer I must say.

You will need to contact a local insurance broker who will have access to specialist underwriting agencies. Don't bother with the big boys, they will not want to know.

*Scarlett

Have you tried

http://www.homeprotect.co.uk/property-condition/subsidence-insurance

http://www.adrianflux.co.uk/subsidence/


http://www.towergateinsurance.co.uk/home-and-property/subsidence-insurance/

patricia..xx

Thanks all. I have tried the previous insurer who is one who wants a yearly survey, as do Towergate.

I have a broker looking into it too, but I think its potentially just too much hassle. I think the reason their premiums are reasonable are because they aren't covered for subsidence at the moment

rs65

patricia..xx wrote: »

I think the reason their premiums are reasonable are because they aren't covered for subsidence at the moment

Ah, that makes sense. Your first post suggested they had normal cover and 'not even had increased premiums'. You are being offered cover, ex subsidence, at reasonable rates so nothing has really changed.

It is normal for other insurers to refuse cover on a house with subsidence history. Usually the insurer who dealt with the subsidence claim would continue cover but, as you say, the current owners have changed insurer so you don't have that option.

The ones Scarlett mentions are your best bet.