Home insurance/cracks in walls

chrish52447

Hi,
we moved into our house approx 3 years ago. It had previous subsidence repairs in the early 90’s as did several house in his area. The previous owners also built an extension at around he one he repairs were being carried out. We have noticed quite a few internal cracks coming though and a stepped crack on he outside leading up to a bedroom window. I did have someone from the coal board come out to have a look but he basically just said there shouldn’t have been any further subsidence since around 1996 so may be bette getting a structural engineer out. I have also had a handyman come out to patch up one of the cracks but he also said it would be better getting it all looked at first. 

So my two options are go to the insurer to send someone out or get a structural engineer myself to do a report. The thing is my current insurance runs out on 4th October so I don’t know if I should get the engineer out now or wait to I have renewed my insurance? Our current insurer has already said they cannot renew for next year after “reviewing their UK clients” so I’m assuming this could be because I did call them about the cracks a few weeks ago but did NOT make any claim. 

Apologies for the lengthy post but I’m really not sure what is he best way to go and don’t want to be let in a position where we are not insured if any expensive repairs are needed. 

Thank you

DullGreyGuy

chrish52447 said:

Hi,
we moved into our house approx 3 years ago. It had previous subsidence repairs in the early 90’s as did several house in his area. The previous owners also built an extension at around he one he repairs were being carried out. We have noticed quite a few internal cracks coming though and a stepped crack on he outside leading up to a bedroom window. I did have someone from the coal board come out to have a look but he basically just said there shouldn’t have been any further subsidence since around 1996 so may be bette getting a structural engineer out. I have also had a handyman come out to patch up one of the cracks but he also said it would be better getting it all looked at first. 

So my two options are go to the insurer to send someone out or get a structural engineer myself to do a report. The thing is my current insurance runs out on 4th October so I don’t know if I should get the engineer out now or wait to I have renewed my insurance? Our current insurer has already said they cannot renew for next year after “reviewing their UK clients” so I’m assuming this could be because I did call them about the cracks a few weeks ago but did NOT make any claim. 

Apologies for the lengthy post but I’m really not sure what is he best way to go and don’t want to be let in a position where we are not insured if any expensive repairs are needed. 

Thank you

You make the claim based on the date of loss so irrespective if you wait or dont the claim will be made against the policy you currently have. 

Because Subsidence happens over time it would only fully be your new insurer's problem if you waited over a year and lied about when you first saw cracks. If you had spotted them in the first 8 weeks of the new policy it would still have been the old policy's problem. If over 8 weeks but before the end of the first policy year then that insurer and your prior insurer would co-manage/pay the claim. 

Whilst you state you "didnt make a claim" most insurers have a basic system and so will have registered a claim as for notification purposes only and so would be declarable to your next insurers anyway. Even if you believe they didnt it would be highly risky to "forget" to mention the incident to your new insurers when getting quotes and even worse to not inform them if you do decide to make a claim on the old policy after you've bought the new one.

Mark_d

I suggest raising this with the insurer now.  They can pay for structural engineers to do all the necessary surveys.  It sounds like the total claim is going to be significant

chrish52447

Thank you. So I’m assuming the best thing to do is pay for a structural engineer to come out myself now and then inform my current and prospective new insurer of the findings? When informing me they couldn’t insure me for next year the current insurer did specify I didn’t have to inform any new insurer that I had been refused, Im assuming this is because I didn’t make any claim and we don’t actually know what the current issue is. Are we still likely to get insured if we start this process now and they find structural issues? I understand the current provider would be liable but wouldn’t any new provider just refuse if there are current issues/costs?
Thanks again

chrish52447

Mark_d said:

I suggest raising this with the insurer now.  They can pay for structural engineers to do all the necessary surveys.  It sounds like the total claim is going to be significant

This was my initial thought but have seen conflicting opinions on whether to go though insurance for the survey or do it myself as if it isn’t anything major I will still have a “subsidence claim” on my property forever? It actually seems the problem could be movement from the extension rather than subsidence but not sure this makes much difference. 

Annemos

Please wait for my comments to be double checked by others. I don't want to give you wrong advice. But here are some thoughts I have: 

-  You would likely have to declare the cracks to any future Insurer when taking out a new policy. That is going to severely restrict who will cover you, I would have thought, particularly after already having had a Subsidence claim on the property. 

-  If you raise a Subsidence Claim now, then the Company is not normally allowed to drop you in the middle of a Subsidence Investigation.  

DullGreyGuy wrote this recently  "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." 

-  There is not much time for you to get a Structural Engineering Report, to confirm whether the cracking is due to the way the extension was built for example (was foundation adequate), or the way any new windows were fitted etc etc. That makes your circumstances a bit more difficult to judge. (If you had several weeks before the policy came up for renewal, then you could have more easily obtained a Report on what is causing the cracking.) 


-  Just to add, if the Insurer does Subsidence Investigations and then it is determined that it was NOT Subsidence, then the Ombudsman expects the Insurer to make sure the Claims and Underwriting Exchange Entry is accurate and does NOT show a Subsidence Claim. (The Insurer can manipulate how it is shown on the CUE, so it is clear that it was not a new outbreak of Subsidence.)

chrish52447

Thanks. Yes that’s the issue, typical! I did obviously declare there had been previous subsidence in early 90’s and it was repaired by the coal board at the time through them and my insurance has just been a “normal” price. He extension was built on deeper/reinforced foundations as this is what the previous owners were told they had to do. 

Annemos

Please see my comment above when I edited. Re the CUE Database that records Claims. Many Insurers use it. 

chrish52447

So if I call my insurer now and get the ball rolling then I’m assuming they will be liable for anything that comes from the report? It sounds like I’m better going through the insurer then? Like you said I will wait for any further comments/advice first. Thanks 

Annemos

That is my impression. If it does turn out to be Subsidence, they will do the investigations themselves. (You might like to get a 2nd opinion yourself, meanwhile, if you want to double check them.)

If it is found not to be Subsidence, they should be able to tell you what it is, in a Report that you can show other Insurers/Brokers if necessary. They will not pay anything out then. But also they should ensure that your CUE record is then adjusted accordingly. 

Annemos

Here is a case with some of the Guidelines.(You may need to show this type of case to the Insurer.)

https://www.financial-ombudsman.org.uk/decision/DRN-4190935.pdf