Declined insurance on the property we are buying

supersaversarah

Hello.

We find ourselves a bit stuck. We are due to complete on our next property purchase in a few weeks but the mortgage requires building insurance prior to releasing funds. The property we are buying g needs a lot of work. Nothing structural however we are planning on knocking through the dining and lounge rooms. My husband included this info on the insurance quote form and now we have been told that since we are planning structural work they won't cover us and advise us this is normal practice.

They have issued a insurance declined letter so now if we apply to another company and omit the above info they will be query why we were declined etc, so ultimately have to disclose our plans to any company.

We really did not anticipate this would be a problem and so are now clueless as to what to do next.

Worth mentioning we had a full.survey done on the property and everything as fine. Just mentioned need to update electrics, boiler etc.

Can anyone advise us on what to do now?

Quentin

The fact that your insurer doesn't want to continue the cover does not have to be disclosed to other insurers.

They don't cover the property during the building works which is the norm for standard building insurance as they told you.

But you do need to discuss your special requirements for cover with Insurers to ensure you get full cover against any events caused by the the proposed work

See if a local broker (not Swinton) can help get you cover to include the building works

Reardoa

A lot of insurers aren't keen when you do work to a property particularly structural. Should they offer cover its likely to be restrictive.
This however is an underwriting decision so you don't have to declare it. I would suggest going forward to look at self build insurance perhaps try www.selfbuildonline.co.uk as they cover projects such as yours.

Linton

Or take out insurance without cover for the structural work so you can move without hassle and get it changed when you know exactly when and what this structural work will be.


As has been said your chosen insurance company deciding that it doesnt want to cover you for structural work isnt what needs to be declared in future applications, they have simply taken a commercial decision that they dont want to take the risk.

pinkcheshirecat

You may find that the value of the building works isthe critical factor. I know we were asked whether we had works in excess of 50k planned. You are right though. If you are asked if you have had insurance declined you will need to declare.

Quentin

If an insurer doesn't cover the risk you are wanting cover for (in this case the unacceptable risk is building work), and declines to offer cover that does NOT have to be disclosed to other insurers!


See advice in #2/#3/#4, and ignore the advice in #5!