Insurance renewal subsidence

Lam15 · 16 June 2019 at 1:30PM

I have submitted a subsidence claim in November 2018. The loss adjuster stated that subsidence is due to dry summer and trees in the garden and only non structural works are required. The claim is still pending, but the insurer refuses to renew the insurance on the old terms, but removed subsidence cover from the policy. When I asked for reasons, they said that they assess risk and make decision accordingly. Could an insurer really do this? Specially, if they decline to renew before work is completed, I will not be able to get another insurance as well. Please advise.

Quentin · 16 June 2019 at 5:44PM

Whenever you are unhappy with your insurer the route to go down is a formal complaint in line with their complaints procedure

Then if you are not happy with the reply or theu ignore you for 8 weeks you can escalate to the FOS for their adjudication at no cost to you

rosierd · 16 June 2019 at 8:12PM

I would speak to your insurer because they are your current insurer they have to continue insuring you and to the same terms so removing subsidence cover goes against that.

However any other insurer is likely to not quote or to cover you minus subsidence cover.

Lam15 · 16 June 2019 at 9:12PM

Thank you for your reply. The insurer is not willing to change their decision. After my second letter, the insurer said that there is another tree in the neighbour's garden, that posses a risk. They said I can send a formal complaint. My view is that if the neighbour's tree possess a risk, the insurer should deal with it in order to stabilise my property (for example root barrier etc or to remove neighbour's tree etc) than stating this as a reason for not renewing my policy on the same terms as that at inception (I have insurance with them for 10 years). Is the insurance company legally obliged to renew the contract on the old terms? I heard many insurers do not have any problem with renewals, but not sure whether this is a legal obligation.

Zorillo · 16 June 2019 at 9:38PM

Your position may be mistaken. Your responsibility is to safeguard your property against the risk of future damage. Your insurer's obligation is to indemnify you against accidental or unforseeable damage that has occured. Presumably the neighbours tree hasn't yet caused damage but will in the future. It is therefore your responsibility to take action, not your insurers job to protect your property.

I would imagine that is why they won't offer renewal including subsidence, and why should they in the circumstances?

tempus_fugit · 17 June 2019 at 3:00AM

rosierd wrote: »

I would speak to your insurer because they are your current insurer they have to continue insuring you and to the same terms so removing subsidence cover goes against that.

However any other insurer is likely to not quote or to cover you minus subsidence cover.

No they don't have to continue insuring you, that's only for compulsory cover. Insurance policies are annual contracts and the insurers can change the terms according to changing risk and can remove anything that they no longer wish to insure, or bump up the premium if the risk is perceived to have increased.

rosierd · 17 June 2019 at 8:51AM

tempus_fugit wrote: »

No they don't have to continue insuring you, that's only for compulsory cover. Insurance policies are annual contracts and the insurers can change the terms according to changing risk and can remove anything that they no longer wish to insure, or bump up the premium if the risk is perceived to have increased.

The ABI states they need to continue working with the policyholder and providing said cover however if there is a circumstance where they can't they have to advise you why.

Insurance renewal subsidence

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