Insurance for proposed purchase with crack in wall

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  • 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

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

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