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UK House Insurance - Subsidence, That Sinking Feeling

By: Trevor Dace

First of all, this is an expensive problem. There will inevitably be a serious excess, i.e. you will have to pay the initial slice of your claim. The majority of UK house insurance policies now stipulate an excess of £1,000 but you can find one for less. I hope you have some savings put to one side!

Secondly, your claim will take months, if not years to resolve. There is a substantial list of exclusions. Here is a typical list. If any of these apply, you could well be without any help from the insurer.

No outside walls, drives, gates, patios, paths, terraces etc. are covered if none of your main buildings or outbuildings are damaged.

Movement caused by coastal erosion.

Any disturbance of solid floor slabs unless the house's foundations under exterior walls are also damaged by the same cause

Bedding down of newly erected buildings or newly made-up ground settling.

Then there are the extras that apply to standard cover. These exceptions provide some cover against accidental damage with your standard perils.

Underground cables and service pipes. Apart from wear and tear, you are pretty well covered for any damage you might be responsible for as the owner of the building.

Sanitary fittings, windows etc. Again accidental damage to your bathroom fixtures, built in ceramic hobs in your kitchen and all the fixed glass and glazing in your building. Beware, that there could well be a clause later on into the policy that will lay out what you can claim for. Every item is treated as a separate entity, not as part of a set. Thus, if your wash basin is accidentally damaged, don't expect your insurance company to pay out for a full new bathroom suite!

Alternative Accommodation. This can be a very important benefit if it becomes dangerous or impossible to stay in your home. The insurance company will pay for you to be housed elsewhere. This could be a nearby hotel or maybe the extra cost to family and friends if they can give you temporary shelter. At least one insurer will also pay the boarding costs for any pets if you have to be away from them. Cover could also offer either payment of rent or loss of rent due if you are a landlord. This could be limited to, a sum insured which is usually 20% of the total value of the property as specified in the policy.

By the way, if you sell the house, the purchaser can enjoy the benefits of the policy up to the date of completion provided they have no cover of their own in force at the time.

WHAT WILL BE PAID - All reputable policies will offer 'reinstatement'. In other words they are offering 'new for old'. The property will be restored with new parts and should the entire structure be beyond economical repair, it will be completely restored with new materials and no contribution from you (with the exception of any excess due). The latest building regulations might mean increased rebuilding expenses. Sadly, if only part of the building is damaged and restored, the remainder of the building might then come under new building regs and this expense would be down to you. Demolishing, debris removal, having the building shored up and so on are all covered as are reasonable architects and surveyors fees, legal fees and fees for estimates, plans and so on.

In all instances the insurance companies like to be in control of the matter so if cracks start appearing in your walls, report it to them immediately. If you go and instruct your own surveyor they might well recommend drastic measures to prop up your house that might not be required. You could find yourself in dispute with your insurer.

There are countless issues that can arise following a claim involving subsidence. Owing to the amount of time that these claims can take, things such as trying to sell your home, trying to change your insurer and so on are all fraught with anguish. It would take a whole volume to answer them all. One I will just mention is that if you have changed insurance companies, the previous company might be called upon to make a contribution to your claim under the Association of British Insurers Domestic Subsidence Agreement. This is to prevent disputes between insurers as to who pays for what. It should not affect you at all.

We'll finish by considering what happens when an underground pipe has leaked and this has led to movement and thus subsidence? What insured peril should apply and what excess will you have to pay? It is in your interests to show that the claim should be dealt with by the the underground services peril. That way you do not have to pay the imposed excess of a subsidence claim. The policy clause in question is known as the 'proximate cause'. You must attempt to prove that the proximate cause of the subsidence is the leaking or broken pipe.

Article Source: Main Articles

This article was created by Terry Cod. He has many years of experience working as a claims adjuster with UK insurance companies. His website www.instant-online-insurance.co.uk offers online tesco house insurance with online quotes and secure online payment.

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