Subsidence - stick with original Ins. provider or move to new, much cheaper company?

johnnyboyz

Our house had subsidence in 1999, 5 years before we bought it in 2004. We've stayed with the same company that paid out for the work done in 1999...mainly out of fear that changing company would be almost impossible and too risky if we had a recurrence of the subsidence or if we wanted to sell the property.
The problem was caused by the roots of a large tree on the public road damaging some drains at the front of the property. The tree is still there but gets pruned severely every couple of years by the council and the problem hasn't happened again. I don't think it was a big problem because the total bill from the structural engineering co. came to 5k.
Normally we pay about £600 for buildings and contents and this year we were quoted £700 on renewal. I started searching on the internet and the price comparison sites don't find many companies offering insurance for properties with subsidence but Admiral did at a cost of £300. I phoned my current provider and by explaining the Admiral offer and stripping it back to as basic a cover as possible they were willing to reduce the premium to £450. I've since been on Axa's website and they will do the same cover for £165 (as they don't seem to worry about cases which are over 10 years old).
My wife thinks we should stay with our current provider but I want to move as we'd save almost £300 on top of the £250 we've already saved.
The only concern I have is that it may be an issue if we decide to sell the house in the next few years (which we may or may not do) but surely any prospective buyer could find similarly cheap insurance as I did by searching the internet.
Any advice/suggestions would be appreciated.

huckster

I can't think that continuity of cover 16 years after a subs issue that was fixed, would make any difference.

If a new Insurers offers you full cover including subs, then save yourself money. The main thing is the house is insurable and any new buyers can also buy Insurance.

Continuity generally only comes in useful, where a house has been underpinned and there is a period of time where most Insurers would not touch the risk for a rate that would be acceptable to a new buyer.

What you don't want to be doing is changing Insurers near (say within a year) of selling the house, just in case something comes up in a buyers survey report. You don't want an argument between Insurers about when the Insured peril issue started and who is responsible for paying a claim.

johnnyboyz

Thanks Huckster.
Any other thoughts as my ins is up for renewal on Thursday!

huckster

johnnyboyz wrote: »

Thanks Huckster.
Any other thoughts as my ins is up for renewal on Thursday!

The other thought is that paying for an expensive policy which you think offers continuity, might put a new buyer off. By changing Insurers and getting a more competitive premium, is proving that Insurance is available at an affordable rate.

Legal and General should also quote.

To help with your anxiety, why don't you phone companies you are looking to arrange cover with. Make sure they are happy to provide cover.

johnnyboyz

I have spoken to Admiral and explained everything and their quote didn't change from the online quote.
I will phone Axa today.

RichieUK

Worth looking at the Halifax as well. I had subsidence repairs done on my bungalow just over ten years ago, requiring approx £2K repairs. The building insurance kept rising each year and was due to go above £800 on renewal last December. As long as the repairs were properly signed off they were happy with insuring it.

I got their Home Solutions Buildings & Contents for about £400, which is purchased over the phone or in branch. They had the cheaper Home Options Insurance which is purchased online, but because I have a lodger I could't choose this option.

johnnyboyz

Thanks Richie. I phoned Halifax and they were very competitive as well and didn't seem phased by the previous history.
I eventually went with AXA and got building,contents and accidental damage for £200 a saving of £500.
Moral of the story - if you're sticking with the same ins. co. many years after a subsidence issue then don't....shop around and save some money.

Quentin

johnnyboyz wrote: »

.....I eventually went with AXA and got building,contents and accidental damage for £200 a saving of £500.
Moral of the story......

Oh dear.


Better moral of your story would be don't go to Axa just cos they are cheap.


(There's a reason why they are so cheap!)

dacouch

Quentin wrote: »

Oh dear.


Better moral of your story would be don't go to Axa just cos they are cheap.


(There's a reason why they are so cheap!)

and there's no guarantee they'll continue offering cover