Underpinned building - block of flats policy - broker/insurer suggestions please

RetSol

I am one of the freehold owners of a Victorian house in North London which is converted into 3 flats.

The building was partially underpinned in 2008 following an insurance claim. Subsidence insurance following the subsidence claim was reinstated in 2011 and the building has been continously covered for subsidence since at a reasonable price.

The freeholders need to renew the buildings insurance (a Block of Flats policy) but are having difficulty obtaining subsidence insurance. We have contacted a number of brokers but, whilst they can arrange insurance for all other standard risks, none have so far been able to offer a policy covering subsidence.

We would welcome suggestions for specialist brokers who may be able to assist. 

In addition, I would welcome insights into what, if anything, has happened in the insurance market recently which is now making subsidence insurance more difficult to obtain. 

DullGreyGuy

Subsidence has always been challenging to get cover for following a notable subsidence claim hence why the ABI agreement is that the insurer that deals with the claim should continue to offer renewal terms as long as the insurance is held continuously with them and the Ombudsman expects them to help you get equivalent terms if they cease writing the class of insurance. 

Presumably you are buying Block Insurance rather than Home?

RetSol

DullGreyGuy said:

Subsidence has always been challenging to get cover for following a notable subsidence claim hence why the ABI agreement is that the insurer that deals with the claim should continue to offer renewal terms as long as the insurance is held continuously with them and the Ombudsman expects them to help you get equivalent terms if they cease writing the class of insurance. 

Presumably you are buying Block Insurance rather than Home?

Thank you, @DullGreyGuy.

Unfortunately, we didn't know about the ABI agreement at the material time! Do you think that there is there any mileage in going back to the insurer who dealt with the claim. The original claim was made in 2003.

By block insurance, do you mean buildings insurance for the whole building, as opposed to contents insurance (which each leaseholder obtains separately)?

We are trying to obtain insurance for the building. 

DullGreyGuy

RetSol said:

DullGreyGuy said:

Subsidence has always been challenging to get cover for following a notable subsidence claim hence why the ABI agreement is that the insurer that deals with the claim should continue to offer renewal terms as long as the insurance is held continuously with them and the Ombudsman expects them to help you get equivalent terms if they cease writing the class of insurance. 

Presumably you are buying Block Insurance rather than Home?

Thank you, @DullGreyGuy.

Unfortunately, we didn't know about the ABI agreement at the material time! Do you think that there is there any mileage in going back to the insurer who dealt with the claim. The original claim was made in 2003.

By block insurance, do you mean buildings insurance for the whole building, as opposed to contents insurance (which each leaseholder obtains separately)?

We are trying to obtain insurance for the building. 

Flats normally will be covered by a Commercial Property product thats unimaginatively called "Block of Flats Insurance" but most abbreviate it to "Block Insurance" as its less of a mouth full. Some who are new to being freeholders of a block of flats dont realise this and attempt to by Consumer Home Building's insurance, which will be cheaper, but normally won't cover a complete building containing more than one dwelling so lots find out the hard way when claims are declined. Hopefully having engaged a broker they'll have pointed you in the right direction but many brokers are non-advisory these days so may just blindly do what they've been instructed to do by the client who has ultimate responsibility to checking the product meets their needs. 

You can naturally approach the original insurer and see if they are prepared to offer terms but as the insurance hasn't been held continuously with them they aren't obliged to do so. Not all insurers are members of the ABI, not that that stops the Ombudsman applying it as good practice to all insurers.

RetSol

We use a broker for that very reason, @DullGreyGuy, ie to obtain Block of Flats insurance. 

Annemos

DullGreyGuy said:

Subsidence has always been challenging to get cover for following a notable subsidence claim hence why the ABI agreement is that the insurer that deals with the claim should continue to offer renewal terms as long as the insurance is held continuously with them and the Ombudsman expects them to help you get equivalent terms if they cease writing the class of insurance. 

Presumably you are buying Block Insurance rather than Home?

Assume Subsidence claim is already finished for a home: 

DGG, do you know what happens if, after a couple of years, the replacement Insurer 2 then also ceases to write the class of Insurance? Does that Insurer 2 then have to refer you on to a third one Insurer 3? 

Or does the Insurer 2 only have responsibility for the first year of a replacement policy? 

How does this work in practice?  Many thanks for any insight. 

XRS200

It is only the insurer that dealt with the claim that has a duty to continue to provide cover

Annemos

There have been Ombudsman cases, now, where the Insurer who dealt with the Claim has to find alternative cover, if necessary with a new provider, if they exit the market. This definitely applies in the middle of Subsidence Claim. 

I am also getting the impression (and also from DGG) that this has now been extended to people whose claims have been settled, where at all possible. For example, arrangements should me made for the old book to be transferred. (DullGreyGuy has the correct terminology for when Insurers exit the market.)

RetSol

Please keep the comments on topic. See the title of the thread. 

Annemos

Apologies.... (it is still somewhat relevant for future readers of this thread. As I believe homeowners are treated the same by the FOS, whether they are living in flats or in other types of home.) 

DullGreyGuy

Annemos said:

DullGreyGuy said:

Subsidence has always been challenging to get cover for following a notable subsidence claim hence why the ABI agreement is that the insurer that deals with the claim should continue to offer renewal terms as long as the insurance is held continuously with them and the Ombudsman expects them to help you get equivalent terms if they cease writing the class of insurance. 

Presumably you are buying Block Insurance rather than Home?

Assume Subsidence claim is already finished for a home: 

DGG, do you know what happens if, after a couple of years, the replacement Insurer 2 then also ceases to write the class of Insurance? Does that Insurer 2 then have to refer you on to a third one Insurer 3? 

Or does the Insurer 2 only have responsibility for the first year of a replacement policy? 

How does this work in practice?  Many thanks for any insight. 

In short, no, I dont know what would happen and cannot recall seeing any Ombudsman cases on the same.

Insurers exiting a market doesn't happen that often, MGAs etc is a different story. Happens more in Lloyds of London but putting aside Equity Red Star who are a major anomaly for Lloyds, no Lloyds syndicate is going to be directly writing Home insurance.