Property underpinned; insurer seeks high premium

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    Property underpinned; insurer seeks high premium

    hi everyone

    im echanging on a house that had underpinning done to it 15 years ago due to subsidence

    no insurance company is willing to ensure me due to this

    the present insurers for the present vendors are willing to insure me at double what the prior vendor is paying - is this legal?

    think they are trying to scare me off the policy due to the subsidence

    #2
    Originally posted by benjaminjones View Post
    hi everyone

    im echanging on a house that had underpinning done to it 15 years ago due to subsidence

    no insurance company is willing to ensure me due to this

    the present insurers for the present vendors are willing to insure me at double what the prior vendor is paying - is this legal?

    think they are trying to scare me off the policy due to the subsidence
    Yes, it's legal. Who would want to provide insurance at a loss, if a major risk is likely to lead to a large payment-out?
    JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
    1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
    2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
    3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
    4. *- Contact info: click on my name (blue-highlight link).

    Comment


      #3
      Previously Underpinned Property

      Hi benjaminjones

      It may be legal for current insurer to charge what they like, but there are insurers/brokers who specialise in this area who should offer a fair premium.

      Use google and type "previously underpinned properties" and you should find quite a few willing to consider risk.

      Probably best using a broker in this instance rather than trying to arrange direct.

      If subsidence was 15 years ago and no problems since, your chances have got to be good.

      Ask vendor for any documentation that they might have, especially certificate of completion and/or STRUCTURAL surveyors report.

      If nothing available then you may find that you need to organise a structural surveyors report. Use the RICS website to find a surveyor near to you. Ask the insurer what they want before arranging, just in case.

      Cost of survey may outweigh saving on insurance in the first year but in the long term it will be of benefit.

      I've arranged plenty of previously underpinned so you shouldn't have a problem.

      Good Luck.

      Comment


        #4
        Hi there and welcome to the forum,

        In my experience, getting a quote for properties with previous subsidence/underpinning is a bit tricky as you seem to have experienced. We have several insurance companies on board and most will not even consider quoting but the beauty of having many companies is that there are a couple that will cater for this.

        I agree with points made that insurers will quote what they want and in view of the "extra" risk of an underpinned property, may well charge a 100%+ load on their normal premium. This is not uncommon and is very standard in the same way that a driver with many claims is charged more on his car insurance than a driver with none.

        I have been reliably informed by my landlords team that the premiums quoted by our subsidence/underpinning specialist insurers are not increased in any way for this but the issue is whether subsidence cover is included/excluded and whether the excess is standard/increased for such a claim. This is dependent on the underpinning/subsidence history and will be based on an individual risk assessment.

        If you are interested in this then all we will require is the normal details required for a quote and a copy of an up-to-date engineers report (can be faxed/e-mailed/posted). If you are just purchasing the property then you may already have some kind of report which gives information on this previous subsidence and underpinning work. This should be sufficient to approach our insurers with.

        I will leave it to you but either way then the advice from paul (previous post) is good. Brokers have a wider market to approach so you will more likely find a better result but most if not all will require a report of some sort to give you a quote.

        Good luck with your hunting!!!

        Comment

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