How can I find out if I can get buildings insurance?

hairypitz

Hi
I'm a first time buyer and new to the whole housebound thing. Forgive my naivety.
I have made an offer on a property. It's a repossession but there's been subsidence caused by mining to some other houses on the estate and although this one isn't affected I have to pay cash as mortgage companies won't lend. The coal board has investigated and pumped in concrete to the mineshaft and are monitoring the estate for subsidence, there's been none since that which was found in the houses they had to demolish
My solicitor has asked me to find out if the house is insurable. The bank that owns the property and is trying to sell it have told me they don't know if it's insurable. That would make it a total non-starter, right?
How can I find out for myself if it is possible to insure the property as no one seems to know and it's a lot of money I'm contemplating handing over if it cannot be insured.? Would I just Google some insurance brokers in my area and get them to find out or do I need something more specialised? I'm assuming the neighbors will have buildings insurance so surely it is possible? And what would a bank be doing selling somewhere that can't be insured? It would be worthless surely?

Browntoa

Standard online insurance quotes for that address , if it's insurable then it will say yes

Aretnap

Three options really

(1) Go to a price comparison website and put the details of the property in, paying close attention to the questions about subsidence, mining works in the area etc. See how many insurers offer cover and what quotes they offer. Be aware that price comparison sites work well for the 90% of people who have fairly normal circumstances, but aren't always the best way to find insurance for houses with unusual or high risks.

(2) find a local insurance broker (Google is your friend) who will doubtless know about the issue and will be able to recommend some insurers.

(3) contact a national broker specialising in properties at risk of subsidence - there are some mentioned in this article. https://www.theguardian.com/money/2016/feb/20/homeowners-subsidence-claim-switch-insurer

Better still, do all three and see which seems to give you the best value.

Don't assume that just because there are neighbour's the house must be insurable. Not everyone has buildings insurance (especially people without mortgages), or the neighbours may be paying eye-watering sums, or else might have taken out their policies before the issues with the mine became apparent. (Where there's a history of subsidence insurers will often allow existing customers to renew their policies, but won't accept new customers).

Also don't assume that because the house is for sale it must be insurable. The bank's job is to sell the house that they've repossessed for as much as they can get for it. It's not their job to find out whether it can be insured - that's your job as buyer. House sales are one type of sale where caveat emptor is still very much the name of the game. And if it can't be insured that obviously has a big effect on the value of the house, as few people will want to fork out a substantial sum on something they can't insure, but it doesn't necessarily make the house entirely worthless.

hairypitz

Thank you! That's really helpful x

Morph4610

Hairypitz, presumably as you're interested in buying the property in spite of the history on the estate you're confident that subsidence isn't likely to occur. No doubt you're getting it at a very good price relatively speaking. I imagine it is possible to buy Buildings Insurance which excludes subsidence or that has a very large excess. Is this an option for you?

Reardoa

It should be easier with the coal board involved. I've come across numerous cases of this nature before and never had any problem placing them. The coal board should be responsible for any future issues so insurers shouldn't have any concerns. Failing that and the mainstream market wont take on the risk their are specialists who will deal with properties suffering from subsidence.

hairypitz

Things are looking a lot brighter. We followed Aretnap's advice and rang a broker. They've found an insurer that are happy to insure it as long as the house itself didn't have any subsidence. Which the estate agency said it hasn't. So now we need to get a very good survey done to confirm it
The coal board compensated the people whose houses had to be demolished and have pumped in a load of concrete and have been monitoring since last year and there's been no further subsidence. There's also plans to build houses over the ones that have had to be demolished next year assuming that everything remains stable. So that's why I'm not unduly perturbed. But if it was uninsurable or an eye watering sun then that would be a deal breaker.