Effect of Subsidence Claim on Future Cover

[Consumer50]

I am trying to sell my house. A Buyer's Survey found minor cracks which could be indicative of subsidence.

The buyer's solicitor suggested I engage with my insurer.

The insurer has inspected the property and is 95% sure the cracks relate to earlier settlement (the house is 60 years old) and other than a little re-pointing no other remedial work is likely to be required. They have installed measuring equipment to 100% rule out any current problem and so investigation is ongoing.

The insurance is due for renewal but coincidentally the insurer is withdrawing from the home insurance market and so will not renew.

A broker tells me it is now impossible to find obtain insurance with subsidence cover.

Do I just have to accept that in future I will not have subsidence cover or is the existing insurer obliged to help me?

[unclebulgaria67]

Who was the Insurance underwriter ?

Quite often the underwriting company is different to the Insurance company ( provider) you bought the Insurance with.

If the underwriting company are no longer Insuring property risks from the renewal date, then you would have to go to companies that may quote, but they might want a structural engineers report to find out what the risk is like, before they offered a quote.

There is no obligation for an Insurance underwriting company or Insurance provider to find you a replacement Insurance or to continue with Insurance they have decided to no longer cover the risks for.

If the underwriting company are still Insuring the risks, but it is simply the provider stopping offering this type of Insurance, you may be able to contact the underwriting company directly or via another brokers.

The Association of British Insurers may be able to clarify what is happening with the company you are Insured with.

Contact us | ABI

WWW.ABI.ORG.UK

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To contact the ABI

And depending on the issues with movement in the property, if you get a structural engineers report, which indicates no subsidence, then you could contact companies like Legal & General, Direct Line, Aviva, Brokers, with the information and they may quote with subsidence included.

[Consumer50]

Thanks unclebulgaria; that is all very useful information. The current insurance is with First Underwriting Ltd and I gather they are exiting the market but I might just check that out with the ABI.

I am told that the monitoring (arising from the existing claim) should report back in the summer & will hopefully establish that there is no subsidence. So hopefully I can approach one of the insurers you mention at that point.

[unclebulgaria67]

First underwriting Ltd are not members of ABI, but their underwriting partners Accredited Insurance Europe Limited (AIEL) are members of ABI.

So I wonder if the Home Insurance was also partly underwritten by AIEL and they will look to ensure that existing risks are Insured by them or another Insurers by arrangement.