Buying house - question about insurance. Mortgage company insists we use existing insurer

[whostolethesocks]

Buying a property built in 1970s. Had basic valuation done which said 'evidence of movement was observed in the form of a hairline vertical crack at the rear of the property at low level. It is not possible to say that further significant movement will not occur. Further movement would seem unlikely but from a single inspection this can not be positively established and further specialist advice may be prudent."

So now a condition of my mortgage (which is about 16 % of the value) is that the buildings insurance should be continued with the existing insurer. If this is not possible with Santander (the mortgage company) or another insurer will be required and a report from a chartered engineer or chartered building surveyor must be obtained and forwarded for investigation.

Any advice?

Quite normal as other insurers probably won't insure on the basis of this info.

I think this is normal in the case of subsidence as you will have to declare this to a new provider who will exclude it from the policy so you won't be covered if the house did collapse. Presumably the house is priced to take account of this.
Are you not getting any further reports done yourself?

We had same thing. The reason for sticking with current insurer I believe is that they are obliged to continue coverage for pre existing problems whereas new ones are not. Might be wise to get a structural engineer to look at the crack. Will cost a few hundred pounds but will help to see how bad problem is

Agree re engineers report for your own piece of mind but this woul probably not change insurance situation

I'd get it inspected properly before purchasing.

Arrange to continue the existing insurance. Why wouldn't you, its to your benefit?

And get a proper survey and structural engineers report done asap

Yes I will continue with existing insurer and with the purchase. I'm not overly concerned as report actually says 'further movement would seem unlikely' (and I know that they wouldn't say that if it looked serious). But it just means I can't get competitive quotes in the future unless I have a report done.

In my opinion you would be safest to get it inspected. Not to do so is shortsighted.

The way they have worded that gives you no protection at all.

You cannot guarantee that existing insurer will take you on or not quadruple premiums each year. You will be tied in forever to this one company.

And what happens if the house falls down the day after you move in? Unlikely yes, but its threat of subsidence. I've seen 2 houses lose a holding wall due to this.