home insurance, cracks and an awful insurance broker - help

ldn0022

Hello,

I need some help dealing with a problem created by my insurance broker.

It was time to renew my insurance (this Saturday). I am the freeholder of a converted house to two flats. I received the renewal insurance from the broker (A) for this year, which was pretty high. As my leaseholder requested a different insurance offer, I got one, which was almost 300 pounds cheaper. I talked with my current broker (A), who offered me a better deal, so I took it. When I reviewed the documents they ( A broker) sent me, it says that I answered 1 question with "no" for cracks:

Question: if an engineer has investigated the property for cracks and mentioned "cracking or movement". I am new to old houses (1900s property). I brought a structural engineer as soon I moved to see some cracks at the property. The engineer reported that the cracks are normal movement and are "type category one or less", so don't worry. But they mentioned movements and cracks. The main reason why I brought him!

However, the insurance broker (A) never asked me the crack question; they just made up the answer! This new deal is a completely new insurance, not with my renewal insurer.

I decided to try the first offer (broker again. I discovered that they made a mistake and did not insure converted houses to flats! So that deal became null!

The broker from whom I took the offer (A) also negotiated the current insurance, which runs out Saturday! They took the money from my bank account. After that, they gave me the documents of the new insurer, but with a fabricated answer to question 1. I was surprised and had no idea what to do.

I am panicking because the insurance documents has the fabricated answers, and it seems I lied tothe new insurer. We do not have an older insurer, and our last day of coverage is tomorrow!

I tried to get a new insurer by phone, and they asked about cracks and whether they were diagonal. So, I don't know what to say, as there are two cracks which are 'kind of diagonal', but the engineer said in the report that they are type category 1 or less.

So please, if you could help with the following:

1. What should I do with the broker (A) who made up answers to the new deal? Should I ask to come back to my old insurer? Is it still possible? Will they ask for the cracks, and we might not be insured because of that?
2. Should I disclose to the insurer about cosmetic cracks and category 1 when looking for a new deal?
3. What would you do in my situation, knowing renewal day is tomorrow?

Some health issues stopped me from being on top of this. I gave it one week to do it, and now it is chaos.

Thanks.

silvercar

Speak to a broker who is more responsible. You’ve obviously lost faith in this one. That he assumed answers without consulting you is not good. Then he made a mistake on property type. I would have been more than disappointed that it needed you to go back to him for a better price to get a reduced premium, he should have done that at the start. 

Start again with someone new. Insurance can usually be arranged to start immediately, so you can do it in one phone call. I’ve found alanboswell a good broker for this kind of insurance.

ldn0022

Hi @silvercar,

Thanks for the advice. Do you recommend informing new brokers about the cracks in the building, even if they are level 1, but some kind of diagonal?

DullGreyGuy

ldn0022 said:

Hi @silvercar,

Thanks for the advice. Do you recommend informing new brokers about the cracks in the building, even if they are level 1, but some kind of diagonal?

You are only required to answer the questions asked or respond when asked to confirm assumptions. If they ask about cracks then clearly you have to declare them. It's arguably a greyer area if its a more generic "confirm the property is in a good state of repair" to which some may say yes because the cracks have been assessed as nothing to worry about where as others may say no and declare the cracks as even though they aren't a problem its still not in perfect condition. Clearly the more prudent answer is to declare them if asked anything that could encompass them but that can easily be inviting an unnecessary price increase. 

silvercar

ldn0022 said:

Hi @silvercar,

Thanks for the advice. Do you recommend informing new brokers about the cracks in the building, even if they are level 1, but some kind of diagonal?

I would declare to the broker and let them make the decision. They are meant to be acting for you after all.