previous subsidence, 5 years insurance, increased price tripled!!!

[wannagethelp]

Can anyone advise, I have a house which had previous subsidence/movement, work done by new method of stabalising 6 years ago, (as method used on C4 homes,all good), no problems since, but insurance company last year upped the price by double! Now this year have doubled that!!! so what started out as a £295pa policy, they are now asking for £1,200! I'm stumped because I can't seem to get another insurance company to take me on, what can I do? Anyone here got experience with this kind of problem?

[unclebulgaria67]

This is where you need to look into specialist brokers such as HomeProtect and Bureau Insurance Services. Towergate may also be able to help.

 

The problem for Insurers is that they have had sore experience in the past. I have seen examples of Insurers taking on a previous subsidence risk, after seeing acceptable surveyors reports and then a few years down the line, they have then had another subsidence problem. So that makes it not very appealing to new Insurers and not great for the current Insurers. The current Insurers have a risk for which they have paid out a large sum, with the possibility of more to come. Whether this justifies a trebling of premiums is debatable.

 

After 15 years without any further subsidence, Legal and General will take a look at the risk. But only 6 years after a subs issue, you may find it difficult to obtain alternative cover.

[wannagethelp]

Really sorry, I forgot to mention a really important thing, current insurers did not have to pay for any previous subsidence problem, it was dealt with previous to me buying property and so insurers were very much aware of history of the house when I bought it, so I really don't understand why the premium has risen so much as it was really reasonable for a good few years, what's happened?

[unclebulgaria67]

Ok so they took you on and they have decided as a captive customer they think they can get away with charging you a much higher amount.

 

I have worked for a major Insurers and have been responsible for re-rating renewals. Normally if the increase is more than a certain percentage or there is a specific risk, your policy would have been flagged up for individual consideration. So I think someone at the Insurers has made a conscious decision to increase your premium. You can complain about it, but they might stick to their guns and it is not something the FOS will get involved in.

 

If you don't like the premium, it should be possible to obtain cover elsewhere, but you will probably need to speak to brokers, as advised earlier.

[wannagethelp]

Thank you Uncle, but isnt there must be some kind of margin they can work within, I'm assuming this is legal, (although grossly unfair), isn't there some kind of agency/ombusman that stops insurance companies ripping people like me off, it is daylight robbery and totally unprofessional and downright wrong:x I feel liked a victim of street robbery but nobody can help even though I know the criminal:???:

[Mwynci]

There are no margins for rating, it's not a legal requirement, as a consumer, if you don't like it you can go elsewhere. It's really ripping you off, if insurers have had a spate of subsidence claims over the last couple of years,and the likelyhood is more subsidence claims to come due to the dry weather we have had since the summer (talk of hosepipe bans in the press) then they are going to charge you and everyone else more for the risk. It's just unfortunate for you, subsidence is the deemed risk at present. Shop around, good luck with it, I would feel the same in your shoes.