More about subsidence and insurance / selling

[Earl Kella]

I've read the thread above about slight subsidence problems.

I'd like to know how far you go with being honest to insurance companies - the place I am currently rennovating suffered some movement about 15-20 years ago and it was mentioned in the survey report that it was long standing. However I have had a couple of insurance companies refuse to insure me as soon as I mention the word subsidence.

The same goes with selling the property which I plan to do later in the year - do I tell the potential buyers on the solicitors questionaire that I know there has been subsidence a long time ago, or just deny all knowledge?

Anyone done similar?

Regards

Earl

[Alan Saywell]

I have a flat in a converted regency property (c1830) and we had some cracking this year during the dry summer. We (the other flats and I) took the view that it was better to come clean. The insurance company visited and did a proper survey and report, which confirmed it was seasonal and nothing too serious. We now have this report to show any prospective buyers, rather than the prospect of the buyer's surveyor finding cracks and having to go through a similar process prior to the sale. I personally think that's the way to go.

Alan.

[Harry Ziman]

You need to be straight - otherwise the insurance company will not be there when you need them. If you sell the house the buyer is entitled to rely upon your answers to enquiries and can sue if you mislead.

Regarding insurance, we had this problem. It took 13 attempts before we could get insurance but it was competitive and comprehensive. Go to a good broker who knows their stuff - they will do the leg work for you. They may want to see the survey report so take this along too - this could satisfy them about the risk.

Good luck - it is manageable.

[Pete C]

Hi,

Is the survey recent and the subsidence still evident? If not why not get a new survey and forget about the old one ;)

cheers, Pete.

[Rickard Dwiggery]

I agree, insurance comapanies try to rip you off whenever they can. I was asked recently if there were any trees more than 2m high within 25m of the building...............er yes, aren't most places in rural England?

So I dare say my premiums are bumped up because of it....they'll be asking if any neighbours have looked at the property in a suggestive way next.............

[Huge]

When we had a subsidence claim, some 3 or 4 years ago, CU couldn't have been more helpful.

[John Laird]

Eagle Star were very nice to me too in similar circumstances. There was no real argument about properly fixing up other cracks that were clearly historic but had been poorly bodged over. That said, I do have this slightly uncomfortable feeling that my knackers are surrounded by an iron fist belonging to them. (I.e. I doubt I'll ever be able to reinsure elsewhere.)

[Huge]

You won't. Once you've made a subsidence claim, that's it. You're stuck with the same insurers for ever and ever.

[Richard Faulkner]

In message , Earl Kella writes

Long standing movement is not subsidence and the fact that you have a survey stating this means that it is not an issue which should concern you or your insurers.

To take a belt and braces approach, you could arrange for a structural engineers report. This will make some conclusions which, assuming nothing is ongoing, will say something about longstanding movement, or differential settlement, or similar, and you can provide a copy to your buyers and their surveyor.

In addition, any questions which refer to this type of thing can be answered by referring to the report of which they have a copy. In this way, you are not answering the question, but allowing them to draw their own inferences.

[Hugo Nebula]

On Wed, 18 Feb 2004 22:41:16 +0000, a particular chimpanzee named Richard Faulkner randomly hit the keyboard and produced:

Not your existing ones maybe, but very few others will quote you.

Oft repeated story, but pertinent: About 10 years ago, I lived in a traditional late Victorian terraced house. There were a few hairline cracks when I bought it, but IMProfessionalO nothing to worry about. Nevertheless, I thought it prudent to monitor these cracks to be able to say to any future purchaser that they were non-progressive and/or seasonal. To this end I contacted my insurance company to make a 'claim' so that they would monitor any movement. After 12 months of monitoring, they wrote back to confirm that the cracking was not progressive and did not impair the stability of the house, and that the cost of any pointing, decoration, etc, was less than the excess on my policy. Fine, I thought, any future buyer can now be assured that the house is stable.

When I came to sell my house a couple of years later, one sale was scuppered, and another nearly so, by the fact that several insurance companies wouldn't give quotes, as "we don't insure properties where there has been a claim for movement".

[John Laird]

You forgot the "amen".

My real difficulty lies in the fact I (stupidly) arranged the insurance through the mortgage lenders. So far, I have tried twice before renewal time to disengage the two. Almost time to try again for 2004/5.