Insurance Cover: Subsidence Claim in process or settled by RSA (Morethan, Nationwide etc)

Annemos

Some thoughts for you. 

RSA is in the process of pulling out of the domestic home insurance market. 

The usual Industry-wide agreement is, that after a Subsidence Claim the Insurer who Approved of and Carried-out the repairs, should continue cover both during the Claim and afterwards. This is considered Good Practice within the Insurance Industry. 

Here is another recent Ombudsman FOS case which concerns RSA. The end of this case says: 


On-going cover RSA have agreed to cover the property through to the next renewal point – in November 2024. And they’ve said they may look to renew the policy, depending on the situation at the time.

RSA are entitled to consider whether to agree renewal in November 2024 – as any insurer would be at any policy renewal point. However, they will then be expected to comply with industry standards, and they will be expected to act fairly and reasonably towards Mrs L and Mr L.

That might be achieved by renewing the policy. It might be achieved through other means, like finding another underwriter willing to provide cover on the same or similar terms. 

If and when RSA refuse to renew and/or fail to make fair and reasonable alternative arrangements for Mrs L and Mr L, then they would be entitled to make another complaint – which they can bring to our service if they aren’t satisfied with RSA’s response.


https://www.financial-ombudsman.org.uk/decision/DRN-4985653.pdf

It is better to stay with the same Insurer (RSA), because no other future insurer has the same responsibility to continue cover. 

If any of you find yourselves having to raise a Complaint with RSA concerning continuation of cover after your Subsidence claim has closed, I would consider making the following argument to the FOS. 

I cannot say that it will work, but I would be inclined to try it......

"If RSA will continue to provide Insurance Cover for Rental homes (people dwell in them as a home). Or even if they are insuring other buildings still in the UK market. Then they should be able to set up policies that will continue cover for the homeowners who had a Subsidence Claim with RSA." 



Here is an example of a case against Allianz, which made me wonder if that could work. It says 

Allianz withdrew from the domestic building insurance market. But I don’t think that outweighs the ABI guidance or means it would be fair for Mr and Mrs D to lose out as a result. I understand Allianz continued to offer other types of buildings insurance. So it would have been possible for Allianz to continue to offer Mr and Mrs D cover, including subsidence.

https://www.financial-ombudsman.org.uk/decision/DRN3300987.pdf