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Insurance issues

4 replies

kirinm · 29/01/2025 17:21

I've seen a house today that we are considering making an offer on. It is in London so costs a lot and we will be stretching ourselves to buy it - but the housing market seems very much in the sellers favour in my particular area so I expect the house to go fairly quickly.

The only issue of concern for me is the ongoing insurance claim they have on it. I've been told that they (insurers) initially suspected subsidence caused by tree roots from a few houses away. They've had monitoring and all the usual subsidence stuff that happens. At some point a new surveyor has come on board from the insurance company and said it isn't subsidence but issues with an internal and external drain. That issue has apparently been fixed, no more movement but some minor works to be done which will be finished this week.

My concern is, is it going to be impossible to insure now for subsidence? How do I even find that out? It would I think defend on what sort of claim the insurance company thinks it is but it will obviously need to be declared to any future insurer. We live in a hilly part of London where there are lots of trees and London clay soil so we would absolutely need to have insurance for subsidence.

There is absolutely nothing coming on the market and we're just exchanged, it is our favourite road so everything else ticks the boxes.

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Tubetrain · 29/01/2025 17:22

You'd need to take over the old insurance (assuming that you are insurable, the company has to let you) and stay with the same company til this is all sorted.

kirinm · 29/01/2025 17:24

Tubetrain · 29/01/2025 17:22

You'd need to take over the old insurance (assuming that you are insurable, the company has to let you) and stay with the same company til this is all sorted.

I think the seller thinks the claim will be resolved shortly. It's more in the future I'm concerned about. Is the old insurer obliged to provide cover for subsidence?

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Tubetrain · 29/01/2025 17:32

kirinm · 29/01/2025 17:24

I think the seller thinks the claim will be resolved shortly. It's more in the future I'm concerned about. Is the old insurer obliged to provide cover for subsidence?

The insurance issue have an understanding that if a subsidence claim occurs in the year after cover moves from one company to another, the old one covers it. But if unsure just stay with the old company for the first few years. Assume you'll be getting a full structural survey anyway?

kirinm · 29/01/2025 17:37

Yes we would be getting a survey. It hasn't been underpinned, just drains / pipes replaced.

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