How do insurance companies define subsidence?

Nuff_Said

Hi All,

When we moved into our house nearly 20 years ago, we had a retention on our mortgage for several things, including sorting some cracks. Investigation showed the original Victorian drain was cracked, so we had it replaced, insurance and mortgage companies were happy, so everything was fine.

Since then, when we've received home insurance renewals, the policy has often listed an assumption that, to quote the current renewal letter, "the house has not been affected by subsidence or structural movement." The insurance company is Direct Line, we've never moved, partly because I've assumed the previous movement would make it difficult, but since the quote is now £786, including legal protection, we could save a significant amount - looks like potentially over £500!

Obviously I couldn't renew the insurance as is with the assumption above, so I have rung Direct Line several times over the years to query it and they've stated more than once that they do have a record of the cracks and satisfactory remedial work, so it's OK to renew on that basis. Last year when I called them they said they didn't consider the movement as subsidence so rather than it being noted on the policy, it didn't need to be acknowledged at all.

So, to all you insurance gurus - does this seem right? And given what Direct Line told me last year, can I get insurance elsewhere and honestly NOT mention the previous movement? It seems unlikely.

Reading some of the other similar threads, it looks like there are other insurers I could try, so I will go down that route, but if I can just pretend it never happened, that's clearly better.

Thanks in advance!

rs65

L&G ask about 15 years so you are fine there.

For other insurers it really depends on what has been recorded. Insurers use CUE to check past claims history so you could use http://www.insurancedatabases.co.uk/media/2893/data_subject_access_request_form.pdf to see yourself what insurers will see.

You could also ask DL for written confirmation on what their claims record says.

huckster

So the drain leaked and caused subsidence to the foundations ?

The definitions in this FOS link I agree with

http://www.financial-ombudsman.org.uk/publications/technical_notes/building-subsidence.htm

"subsidence
Downward movement of the ground beneath the buildings other than by settlement."


It may be the case that no underpinning work was necessary and that after fixing the drain, all that was required was for cracks to be dealt with. But there is no risk category that this claim would be entered, other than subsidence.



If you can get hold of all the claims paperwork and a structural survey that was completed sometime after the works, you might be able to get an Insurers to quote at standard rates. But it would involved messing around. Some Insurers would want a new structural survey which would be costly. Some will just say NO without looking into it.


So it might just be easier to see how much L&G will quote, as they are not concerned with subsidence more than 15 years ago.