Subsidence vs. insurance query

Andyhhh

Hi folks,

I'm looking at buying a property which is an area where there has been fair amount of underpinning due I understand to heave from local trees.

I'm probably going to pay for my own structural survey outside of the mortgage as I don't need a full survey - but I do want a targeted structural report on the property.

My question is: how can I be sure that I will be covered for any subsidence, heave or other structural issues if it can be proven by the insurer that there was a structural issue before purchase?

Many thanks in advance.

FutureGirl

Short answer - you can't.

Insurance doesn't cover anything that 'happened' prior to taking our the policy - there will be a term in every policy booklet regarding this.

Therefore, if your survey picks up their is subsidence, you will be aware of this. If you then buy the property, your insurer won't cover the subsidence.

silvercar

You ask the seller who their insurer is and then see if they will quote for you to continue cover.

bigadaj

If it's a known issue due to the local geology then it could well be that there is no subsidence when you purchase, but it could develop in the future due to climatic or vegetative influences.

You should be covered on your insurance at that point if there was no evidence on your buying structural survey, just need to be careful on the terms of future insurance policies, insurers wil try to exclude any excess risks, just look at flood cover for example.