PLEASE READ BEFORE POSTING

Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.

What is the difference between settlement and subsidence in buildings?

Options
jim22
jim22 Posts: 1,227 Forumite
in House buying, renting & selling
Hello moneysavers, what is the difference between settlement and subsidence. Is settlement simply subsidence that happened in the past but has now stopped or is it a different action altogether?

I ask this because insurance call centre workers think it is the same thing and either refuse a policy outright, or give you a ridiculous premium.

Surveyors also seem to tick the subsidence box whilst declaring that there has been past settlement suggesting that they are one and the same but that one is ongoing and one is not. I never seem able to get a straight answer to this one.
«1

Comments

  • Doozergirl
    Doozergirl Posts: 33,813 Forumite
    Name Dropper Photogenic First Anniversary First Post
    Options
    Settlement is like buying a new sofa and breaking it in so it gets nice and comfy for your bottom to sit in. Every sofa does it.
    Settlement is usually a uniform sinking (more a kind of sighing) of the house onto it's new foundations. It happens when the house is built and it will stop.

    Subsidence is like buying a sofa and a leg falls off.
    Subsidence is a problem across part of the building which causes that part to start moving away from the rest. It needs rectifying or it will continue.

    They are not the same thing. Call centre people know nothing about underwriting. The questions that are asked don't usually relate to settlement. The question is usually 'has the property been subject to subsidence, heave or landslip' or something along those lines. If the surveyor has okayed the house then the answer to that question with a house that has settled is 'no'.
    Everything that is supposed to be in heaven is already here on earth.
  • flora48
    flora48 Posts: 644 Forumite
    First Post First Anniversary Combo Breaker
    Options
    Thanks, Doozergirl, for a graphic explanation.
  • bigfreddiel
    bigfreddiel Posts: 4,263 Forumite
    Options
    jim22 wrote: »
    Hello moneysavers, what is the difference between settlement and subsidence.
    anything from £5k to £500k
  • ruggedtoast
    ruggedtoast Posts: 9,819 Forumite
    Options
    Many policies ask if there has been a history of movement. Quite a few specify subsidence though.
  • Horizon81
    Horizon81 Posts: 1,594 Forumite
    First Post First Anniversary Combo Breaker
    Options
    Settlement or subsidence basically means the same thing to an insurer: Movement. They don't know if it's historic or if it's still happenning so you can kiss goodbye to getting a normal insurance policy. Movement is movement.
  • Doozergirl
    Doozergirl Posts: 33,813 Forumite
    Name Dropper Photogenic First Anniversary First Post
    Options
    Horizon81 wrote: »
    Settlement or subsidence basically means the same thing to an insurer: Movement. They don't know if it's historic or if it's still happenning so you can kiss goodbye to getting a normal insurance policy. Movement is movement.

    That isn't true. Call centre monkeys don't understand movement, underwriters do. Settlement is totally normal.

    There are even specialist insurers who will cover houses that have previously suffered with subsidence and there has been an agreement that the existing insurers should continue to cover problem houses even after they have been sold to new occupants.

    So you're wrong.
    Everything that is supposed to be in heaven is already here on earth.
  • ruggedtoast
    ruggedtoast Posts: 9,819 Forumite
    Options
    Doozergirl wrote: »
    That isn't true. Call centre monkeys don't understand movement, underwriters do. Settlement is totally normal.

    There are even specialist insurers who will cover houses that have previously suffered with subsidence and there has been an agreement that the existing insurers should continue to cover problem houses even after they have been sold to new occupants.

    So you're wrong.


    In my experience of trying to cover a property with movement on the survey he isn't wrong.
  • Arthurian
    Arthurian Posts: 798 Forumite
    First Post First Anniversary
    Options
    I appreciate I am about to ask how long is a piece of string, but am going to ask anyway. How much extra should you expect to pay for insurance on a house which has, in the past, suffered subsidence? Would it make any difference if the survey said something like "appears to be historic subsidence"? If the house without subsidence would cost, say, £500 to insure, would it be £1,000 with historic subsidence? Any clues, anyone?
  • Horizon81
    Horizon81 Posts: 1,594 Forumite
    First Post First Anniversary Combo Breaker
    Options
    ruggedtoast wrote: »
    In my experience of trying to cover a property with movement on the survey he isn't wrong.

    Thanks. I wasn't talking BS. I've once tried to insure a house where the survey said settlement. No mention at all of subsidence, just settlement and IIRC 'structural movement'. As soon as you say this to an insurer (referred to in a derogatory fashion as a call centre monkey by some people) then you're going to need specialist insurance. I spoke to the relevant department of several insurance companies and quite simply, movement is movement, whether you call it settlement or subsidence. So there.
  • ruggedtoast
    ruggedtoast Posts: 9,819 Forumite
    Options
    Arthurian wrote: »
    I appreciate I am about to ask how long is a piece of string, but am going to ask anyway. How much extra should you expect to pay for insurance on a house which has, in the past, suffered subsidence? Would it make any difference if the survey said something like "appears to be historic subsidence"? If the house without subsidence would cost, say, £500 to insure, would it be £1,000 with historic subsidence? Any clues, anyone?

    Depends on the insurer. Bear in mind that when renewal time comes around they have a captive market.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 247.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards