Does a subsidence claim "disappear" after X years?

mark_cycling00

Hi,

The previous owner of my property had a home insurance claim for a level-2 wall crack. The policy continued with a £1000 excess for subsidence as before.

I now have the same policy through the insurer. Although it is quite expensive

I've been told that the claim will "disappear" after 6 years and no longer affect the premium.

It's coming up to 6 years. Is there any truth to this? 

Thanks

dunstonh

Category 2 is classed as cosmetic and in most cases you wouldn't use an insurer as it's just routine maintenance and decoration.    However, in your case, the previous owner did.

You should always answer the questions as they are asked.   

With our insurer, the question is "have there ever....."    And we declare ours with an estimated date of 01/01/1970 Iron ties and sloping rooms.      Our insurer took a copy of the structural engineer's report that listed all the current cracks (current at that time) and that they were all category 2 and their underwriter decided not to note them on the policy as they don't treat category 2 or lower as being reportable unless there has been a claim. We were fixing them without the insurer.  So, the then-current cracks and all ones that appeared after last years drought don't get reported.  However, the iron ties need to be noted forever.         We don't change insurers due to the nature of our property.  So, I don't know if the category 2 or lower exclusion applies with others.

So, in your case, read the question carefully and answer it as it asks.   

DullGreyGuy

mark_cycling00 said:
I've been told that the claim will "disappear" after 6 years and no longer affect the premium.

It's coming up to 6 years. Is there any truth to this? 

Yes and no

Firstly there is a matter of "your" claims history so the former owner currently has to say "yes" they have made a claim in the last 6 years (or 5 or 3, length varies by insurer) and declare it. That will drop off when the claim is beyond the time period requested. You however havent made a claim so can answer "no" (assuming you've had no other claims)

Secondly there will typically be a question on the property itself about if its suffered from subsidence... again insurers can vary the time period they ask for but best case scenario is likely to be 6 years and the majority as if the property has ever. For the later it will never drop off which is why its one of the questions asked during conveyancing. 

mark_cycling00

Thanks both, I think that is much clearer.

It was cat 2 but visible on exterior. There were some trees removed as part of the claim process.

So we probably need to declare this indefinitely, but hopefully the cost it causes will reduce over time. 

I might look around this year for cheaper quotes with the same low excess

DullGreyGuy

mark_cycling00 said:

Thanks both, I think that is much clearer.

It was cat 2 but visible on exterior. There were some trees removed as part of the claim process.

So we probably need to declare this indefinitely, but hopefully the cost it causes will reduce over time. 

I might look around this year for cheaper quotes with the same low excess

You will struggle to find anyone other than the original insurer to agree to offer terms on a property with a history of subsidence, if you do get quotes double check they havent endorsed the policy to exclude subsidence

dunstonh

The online/basic policies would never let you get as far as the explanation and consideration stage but jump straight to rejection.   However, the better providers would likely consider a property with historic cat 2 movement.   Although you don't pick them to save money.

mark_cycling00

It's about £900pa to insure £1million plus contents.
(The market price is more like £800,000, rebuild is much higher due to materials etc)

Seem excessive?

DullGreyGuy

mark_cycling00 said:

It's about £900pa to insure £1million plus contents.
(The market price is more like £800,000, rebuild is much higher due to materials etc)

Seem excessive?

Depends on contents cover (esp things like Personal Possessions cover), location etc.

There are others on here spending much more needing either specialist policies from NFU or are verging on high net worth so buying from Hiscox Direct (aka 505). Our contents only is about £450 but its got high value world wide cover which we need but many others wouldnt. 

Its a bit pointless cross comparing premiums with others because needs vary a lot and risk factors.

dunstonh

mark_cycling00 said:

It's about £900pa to insure £1million plus contents.
(The market price is more like £800,000, rebuild is much higher due to materials etc)

Seem excessive?

I would take that price if it was mine.  My recent renewal was £2,448, of which £2197 was down to the buildings.  But as mentioned above, its difficult to compare like for like as we have different buildings.

mark_cycling00

Noone is shrieking that it's excessive so that's a relief!

I haven't had buildings insurance before so I hope I'm starting to build up some no claims discounts too

DullGreyGuy

mark_cycling00 said:

Noone is shrieking that it's excessive so that's a relief!

I haven't had buildings insurance before so I hope I'm starting to build up some no claims discounts too

NCD is not a well developed thing in Home, however have history of having insurance but not claims (which is technically different) will certainly help. 

The UK average Home insurance is circa £152 covering £230k of rebuild costs and £35k of contents. So compared to the average all of the above numbers are high but then the above numbers are also insuring alot more than the above values.