Insurance for proposed purchase with crack in wall

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • Insurance for proposed purchase with crack in wall

    I am in process of trying to purchase a flat in an Edwardian house with a crack in the side wall. The valuation by my mortgage provider said no signs of movement, subsidence etc. my building surveyor thought the crack a sign of movement but couldn't be sure.

    Once purchased the freehold will transfer over to me and the buyer of the other flat. Is there likely to be a problem transferring the existing insurance policy over to us? Will we have to re-apply for a new policy? If so is it likely to be very difficult or costly to get insurance?

    Is there anything else I should be aware of here?

  • #2
    It is unlikely you will be able to transfer an insurance policy over. The insurance in place at the moment is based on the current owner, their personal information, their use of the property and their declared details of the property.

    When arranging your own insurance, you simply need to declare all of the information you have just shared here and let the insurer make the decision. It would be best to speak to a broker who has several insurers at their disposal as they will know what ones are best to approach with this.

    The broker/insurer you approach may wish to see an up to date surveyors report so they can make a decision. They may simply okay everything normal terms or maybe with an increased premium or they may exclude subsidence cover or even decline cover altogether. It is impossible for me to say what is most likely without seeing the report.

    If you struggle to find an insurer to help then you can always approach the current owners insurance company and see if they can help. As they have current knowledge of the property they may be able to help you more than a new insurer but due to the data protection act it may be difficult for them to use such information.
    Steve Smith - Company Director at a leading Landlord Insurance broker with 17+ years experience in the industry
    LandlordZONE Verified Poster and Topic Expert for Landlords Insurance since 2009
    See my profile for contact details

    Comment


    • #3
      Thanks Ashburnham, that's helpful and I have started approaching Brokers directly

      Comment

      Latest Activity

      Collapse

      • Subsidence cover
        Lorimer
        I have trawled the internet etc. and made some phone calls but as soon as I mention the fact that the boundary wall in our front garden has developed cracks, we are refused cover.

        We have done some investigating and suspect that the cause of the cracks on the boundary wall is a large tree...
        08-08-2017, 06:49 AM
      • Reply to Subsidence cover
        Lorimer
        Agreed. I found that out when shopping around before renewal with the existing insurer. Good job I did not tell the existing insurer where to go in a fit of pique....
        08-08-2017, 17:55 PM
      • Insurance shot up due to water leaks from upstairs.
        Flashback1966
        I have an irresponsible landlord upstairs. Twice, the ceiling has fallen due to a water leak.

        The council are useless and gave no help.

        My insurance has gone up, as I have had two claims during recent years.

        Is there anything I can do about this? Can the upstairs...
        08-08-2017, 15:53 PM
      • Reply to Insurance shot up due to water leaks from upstairs.
        JK0
        What did you expect if you claimed on insurance rather than sued the guy?
        08-08-2017, 16:23 PM
      • Reply to Subsidence cover
        Flashback1966
        I don't understand why you did n't make a claim under the current insurance?

        I had a similar situation with a front garden wall, was leaning. The insurance company sent a surveyor at no cost to me.

        Whilst the house had strong foundation and was n't impacted by subsidence....
        08-08-2017, 15:48 PM
      • Reply to Subsidence cover
        JK0
        I believe you are over thinking this. You definitely want your existing policy to continue, as this will likely be the only firm who will insure for subsidence at a reasonable cost in the future. Also, I would not like to try to claim on your old policy if you have stopped it in favour of someone e...
        08-08-2017, 10:09 AM
      • Reply to Subsidence cover
        Lorimer
        We shopped around a bit when our existing insurer gave us the renewal quote and terms. We could not (at that time) find any other insurer that would offer us an all-inclusive policy. They either declined to insure us or offered to insure us on FLEA terms so we grudgingly renewed on FLEA terms with our...
        08-08-2017, 09:57 AM
      • Reply to Subsidence cover
        JK0
        I would just pay the premium asked. The cost of the works should be covered under last year's policy, assuming you claimed. (Did/have you?)

        Changing companies now will be incredibly expensive, if you are able to get cover at all.
        08-08-2017, 09:46 AM
      • Reply to Subsidence cover
        Lorimer
        Tee hee. Crack on, I get it!

        Seriously though - we first noticed a small crack on the boundary wall around 8 months ago while we were still within an 'all-inclusive' insurance policy. We set out about monitoring the crack and sure enough it got bigger and bigger as the months went by. We...
        08-08-2017, 09:33 AM
      • Contents Insurance
        HantsAgent
        Is it legal for a landlord to insist that their tenant has adequate insurance for their contents and accidental damage to the landlord's property?

        I'm a relatively small independent agency, so I don't "sell" insurances, but I always thought you couldn't force someone to take an...
        08-08-2017, 08:39 AM
      Working...
      X