Buildings Insurance

[colbee]

Can anyone offer advice; I'll be very brief because the overall circumstances are a bit more complex but I will explain further if necessary.

A claim was made with an insurance company (new business) for exterior wall cracks. Their loss adjusters determined the cause was a fractured drain. The cost of the claim to the company was around £3500 after £1000 excess had been paid.

The claim was made only a few weeks into the policy period. At the expiration of the 12 month policy the company renewed it. However, at the expiration of the second policy the company refused to renew, citing the reason as the 'subsidence claim'. No further discussion would be entered into.

The insurance companies' regulatory body and the Financial Services Ombudsman dismiss the refusal as simply a commercial trading decision and therefore outside their jurisdiction.

An article in the Financial section of the Mail on Sunday (28/12/08) states: 'Under industry codes, an insurer must carry on providing cover for problem properties'. I am unable to find these codes and have had no luck with the Mail.

Can anyone help?

[Helford]

Hi,

 

Have a look here:-

 

The Association Of British Insurers

 

and here:-

 

www.cila.co.uk/files/Technical%20Bulletin%2014%20-%20Domestic%20Subsidence%20Agreement.doc

[colbee]

Helford,

Thanks, I have checked out both those sites. Unfortunately, both refer only to the procedure to be adopted where the claim situation arises around the cusp of a change of insurance company. I did have the problem of attributing liability at the outset when the new company denied liability and offered no further advice, but I was able to 'point them in the right direction', as it were, because I had already done my homework in respect of ABI's Domestic Subsidence Claim Handling Agreement. The new company reluctantly conceded liability.

The issue I have now is that company's refusal to renew after the second year, together with the Mail on Sunday's assertion that such a company is obliged to carry on providing cover for problem properties.