Home Insurance - who will cover subsidence?

Scaredy_Cat_3

It's not actually subsidence. I have a report stating it's 'old heave movement which does not appear to be progressive' and 'unlikely to be subsidence related'. The prevailing theory is that it's 'sulphate attack due to poor workmanship' and poor fill material. the bits in quotes are taken directly from the surveyor's report.

However, I do have to declare it to insurance companies, and as soon as I tell them, they don't want to know. I can't find anyone who will even give me a quote. I am currently insured with Halifax and they don't consider it an issue, but the renewal is quite high and I want to shop around.

One broker did say if I could say it was due to poor workmanship rather than subsidence then they would quote... but I can't say that for certain - I can only tell them what the report says.

Please can anyone advise me?

Badger_Lady

Has the issue been resolved? If there is an outstanding problem then, yes, you will have trouble, but if it's been fixed and checked then I would just expect insurers to load the premium rather than refuse outright..? After all, that would make your property unmortgageable...

If it is fixed and you're still having trouble, try the Co-op (CIS Insurance) - they seem to be able to cover a wide range of scenarios. EDIT: if you're already trying brokers they may have already checked with most insurers. You might have to stick with Halifax

Scaredy_Cat_3

Thanks for the suggestion. It's not actually resolved. It seems to be an old issue - came to light when we had our mortgage survey done (we have been here a year) but was an old problem then. We asked the previous owners to sort it with their insurance company - they filed a claim and as a result of that claim I have a letter stating:

'I could not detect any evidence of current subsidence damage to the buildings.' and goes on to say it is 'old heave movement which does not appear to be progressive. The heave is likely to have been caused by chemical attack to the concrete from contaminated fill material'

So basically they looked at it, and decided nothing needed doing. But now as soon as I mention it to insurance companies they decline to quote. I can't understand it as it seems to be something and nothing, and I don't think it should cause so many problems.

Scaredy_Cat_3

Well, I've just spoken to a company that apparently specialises in insuring properties with subsidence issues - and even they won't quote me! At least not until I've paid for a survey! Well, I guess any saving in the premium would be eaten up in the cost of the survey so it looks like I'm staying with the Halifax after all!

I can't understand why I'm having such problems. When we bought the place I was concerned about this issue but the estate agent assured us it was just a feature of this estate and well known that it was just caused by poor shale when they built the properties, nothing to worry about. I had no idea I would be unable to get anyone to even give me a quote on the place. I can't believe there are loads of properties all around me unable to get insurance quotes! I wonder if I'm doing something wrong here.

Does it even need to be declared? I know it's too late now - but I'm curious. We asked the previous owners to get their insurance to sort it and they evidently felt it didn't require any action to be taken - hence the letter stating it is old heave movement which does not appear to be progressive.

Is there anything else we can do?

Badger_Lady

If your neighbours have the same problem, could you speak to them and find out how they get their insurance?

Scaredy_Cat_3

Yes, I'll try that. But I suspect they won't have a problem. I feel we were just unlucky having a particularly picky surveyor - at least that's the impression given by the estate agent who sold us the property!

I suspect if it has never been an issue for the neighbours, they won't have ever needed to mention it to their insurers - but because it has been picked up on this property then we have to mention it.

I'm not even sure if re-concreting the garage floor would help. When the insurance companies ask about it, they don't ask if there is a problem NOW, they ask if there has ever been a problem with heave or subsidence - so even if we sort out the floor (which doesn't show any signs of a problem anyway, as far as I know) we will still have to declare it.

WhitePear

Hi Scaredy Cat.

I'm in a similar position where we need cover for a house which has had previous subsidence. I was wondering how you got on with your enquiries?

jstallan

Try Norwich Union.. Long story, but when we discovered by chance that our property had been underpinned 20 years ago, NU were very understanding and only increased the excess for subsidence and not the annual premium (unlike others)

Benjamin4

It seems so strange to me that insurers are put off by underpinning.

Where I live in SE14 almost all the houses in the area are Victorian and on slopes, and all have visibly subsided (i.e. they are wonky!). Almost all will have been built with inadequate foundations.

Surely a house that has been underpinned is less likely to suffer new subsidence problems than any of the others in the area???

It seems to me that if you just ignore the problem and let your building get ever more wonky (and likely to fall over?) over the decades, never even thinking the word 'subsidence', the insurers will blithely give you cover without a second thought. But if an insurer has actually gone to the trouble and expense of stabilizing a building at some point in the past, no-one will touch you. Where's the sense in that?

Why aren't they refusing to cover buildings that haven't been underpinned?

THF

Hi,
DO NOT TAKE INSURANCE WITH SANTANDER!!!
I bought my house last year, previous subsidence sorted 5 years ago, I have 2 structural engineers reports and a certificate of adequacy to prove it. Insured it with Abbey National, now Santander, and declared all the previous problems. They insured us no problem, and we checked it through with them 3 times to be certain.
One year later had the building checked as front door locks had moved, Santander have 'lost' all my records, refuse to accept my written proof that I told them and have cancelled my policy.
How can they do that when it's their fault they've lost their records?

All the recent negative newspaper articles regarding their banking applies also to their insurance.
I have been forced to take my case to the Ombudsman and I am also closing all my accounts with them after 20 years.
They are crooks

elvis_girl

As far as I can see its best to just say nowt. I have heard rumours that my property has suffered from the "s" word in the past but it hasn't seemed to affect the other 10+ people who lived there before me! I'm worried if I do find out for definate there has been a problem well, can open worms everywhere...