Structural movement on house insurance renewal

class2ldn

Hi guys, bought our first house last year and on the survey it mentioned about longstanding and non progressive movement.
House is only 20 years old and when I clarified this with the surveyor he said it was down to settlement.
Anyway the house was already insured with direct line and we told them about the survey and they said it was fine.
Our renewal is up and they've decided to bump the price up £70 as the insurance premium tax has increased.
Started to look round elsewhere but not sure whether it actually has to be declared.
Mortgage is with Halifax and they state that the house must not be damaged by subsidence.
Now I'm under the impression this isn't subsidence so I can answer no but it does muddy the waters a bit for the insurance as some don't differentiate it and it causes issues.
Surely Halifax would insure it if they provided a mortgage on it? They are coming in around £90 cheaper for the year then direct line.
Just don't want to be uncovered.
We didn't negotiate a massive discount on the place as we got it for 4k under the asking price anyway but it's at the back of my mind this could be an issue come resale.
What do you think?

Quentin

Take care over moving insurer with this history.

A new insurer may not cover you for subsidence and once you let your current policy lapse then DL are no longer obliged to provide you cover.

class2ldn

Why would they not cover subsidence though?
I've checked with Adrian flux and they were still cheaper then direct line with everything declared and 1k subsidence excess. Surely we'd be able to go back to direct line the year after if they still had the same terms.
Like I say with Halifax I'd be a bit miffed if they didn't insure a property they mortgaged.

class2ldn

Well just been told Halifax won't insure it as it's actually underwritten by lloyds who deem that it could move further even though it says non progressive??

paddyandstumpy

I was going to say Halifax don't underwrite their own product but you've just established that anyway.

Once you leave your current insurer they are under no obligation to offer further cover, the domestic subsidence agreement is clear in this respect.

As suggested be wary about moving, just ensure any new provider is aware of the settlement, they may ask to see a copy of the pre purchase survey.

class2ldn

Yeah I explained it to Adrian flux and they were £ 30 cheaper but I think it may just be worth staying with direct line.
Currently pay around 19 a month for buildings and contents with accidental damage but I think we'd pay it in 1 and save us some interest, which equates to about the same each month anyway over the year.
Guess it's just that mentality of having to pay more the next year when you want it to go down lol

class2ldn

Just did an online quote with direct line and it's come back £60 cheaper, il be on the phone to see why they can't give me that price

Quentin

class2ldn wrote: »

Why would they not cover subsidence though?
I've checked with Adrian flux and they were still cheaper then direct line with everything declared and 1k subsidence excess. Surely we'd be able to go back to direct line the year after if they still had the same terms.
Like I say with Halifax I'd be a bit miffed if they didn't insure a property they mortgaged.

Insurers don't "like" properties with any subsidence in their history.


The Insurer that dealt with the original claim is only obliged to continue the policy. So if you leave and go back after a year its possible they turn subsidence cover down.


All others can refuse to cover subsidence/movement etc if they want.


Take care about ending your policy and starting a new one to get the online discount (as that won't be the same policy that is obliged to cover subsidence, but as far as DL are concerned a brand new policy). One day you may want to sell, and this will be a problem if getting insurance cover is difficult for buyers.


Hopefully they will match their online quote on your renewal so that your existing policy can be renewed

EdGasket

class2ldn wrote: »

Just did an online quote with direct line and it's come back £60 cheaper, il be on the phone to see why they can't give me that price

That'll be for new customers to attract them; they might match or might not. I've known both happen.

class2ldn

There hasn't been any claim on the house insurance for subsidence. First direct line knew about movement was from our survey. On our renewal it's got subsidence ticked no and I queried it and they said its correct, as long as it says longstanding and non progressive then they don't class it as subsidence.
Just did a quote on privilege which came back around £70 cheaper then direct line and they said they have the same underwriters as direct line so would be happy to insure it under the same basis as direct line did in regards to the movement being longstanding and non progressive.

class2ldn

Just to add, the only reason the surveyor said structural movement was because of slight cracking in the rendering which he put down to settlement but had to note it on the survey so just to be clear there's been no previous claims for subsidence so swapping insurers shouldn't be a problem, only of there was a claim before which was handled by direct line, which there wasn't. As far as they are concerned and it seems privilege the longstanding movement is of no issue