Buildings Insurance in ED

[ed_pete]

A post for the more finanically concerned...

Have just had my annual buildings insurance renewal quote. Now at ?828 you might think I live in a palace but no, just a 4-bed victorian semi. I should disclose that I made a claim on my insurance 8 years ago as a street tree had roots growing under the foundations that was causing some largish cracks. Anyway that was all sorted but ever since I've never been able to get insurance with anyone else and now they're really stinging me. Given that East Dulwich has a large number houses similar to mine, all built on clay, I wondered if anyone else had had a similar experience and knew of a cheaper source of insurance.

TIA

[mikeb]

If it makes you feel better, that's what I pay for my place, which was underpinned about 15 years ago. When I shopped around, no other insurer was interested - even though, having already been underpinned, the house is probably less of a risk.

[Mark]

When I moved into my flat we were paying ?2,500 a year (shared between 4 flats) because we had had subsidence, even though it was underpinned. But thrifty me looked around and after showing the Structural Engineers Report we now pay ?650 (shared between 4 flats). The person I used was:

John Cran ACII

Director

Flats Direct

Commercial & General Insurance Services Ltd

Authorised and regulated by the Financial Services Authority. Our FSA Register Number is 312649.

Tel: 01202 862662

I hope that helps

[*Bob*]

Definitely shop around.. In areas where subsidence is less common, the homeowner can often be held to ransom by the insurer, but here in ED underpinning is so common that you should have more options - more so if you've had remedial work done properly and have all the documentation to back it up (the structural engineers report which Mark mentions is key)

There's a scheme called PUPS (previously underpinned properties) though I'm not sure if this is more for people who are having problems getting any cover at all.

Local insurers may give you a better deal, as they are more familiar with the score here in SE22..

If you are confident the problem is unlikely to reoccur, you can also offer to increase your excess which will greatly reduce your premium.

[tiddles]

we moved 6 months ago from peckham to east dulwich and my insurance soared! Did some shopping around on the internet and M & S were the cheapest. It really depends from insurer to insurer. For info, we were paying about ?350 for contents and buildings insurance in peckham (3 bed terrace) to ?736 for a 5 bed semi in a 'nicer' area. I think it is the old subsidence thing

good luck

[ClareC]

Give Halifax a go, when I was buying the property last Feb, most insurers seemed to get stressed by the SE22 postcode and quoted silly prices. Halifax already insured the property and went them, I pay @?400 for the buildings element. Its a 3 bed Victorian semi with a subsidence scary Se22 postcode - no underpinning / subsidence present.

[*Bob*]

If the building hasn't been underpinned, or if there's never been a claim for subsidence, then you won't have any problems getting getting building insurance (as ClareC says, Halifax are a good bet and this is normally their policy for SE22. We're with them as well). Even if your building has shown significant movement and might even be on the verge of needing underpinning, as long as a claim hasn't been made you should be ok.

The problems start when there has been a claim made in the past.

[Asset]

I pay ?422 pa for joint buildings and contents ?500k & ?60k respectively with Legal & General. I've got a few years ncd but that's a scam anyway probably. 3 bed terraced. (1960's)

[spadetownboy]

try the post office thats who im with ?290 pa buildings and contents, ?500k and ?45k respectively - 3 bed semi. ?100 excess except subsidence which is ?1k.

[Asset]

that's a good deal.

[*Bob*]

It sounds like a great deal.

Though not all insurance policies are created equal!

[*Bob*]

Just tried the PO out of curiosity

Buildings and contents came back as nearly ?700, so worse than Halifax (current insurer).

Spadetownboy.. sniff.. you got me all excited for nothing. (As excited as one can get about insurance anyway)

[spadetownboy]

Asset Wrote:

-------------------------------------------------------

> that's a good deal.

certainly is they even gave me 50 quid when i signed up, i,ve been on various policies for 15yrs and never made a claim(touch wood)so im probably seen as low risk,i had even cheaper quotes but obviously the benefits were lower as well

[ed_pete]

Thanks for all the advice. I have tried shopping around but as Bob says they won't touch you if you've previously made a claim. Confused.com quotes range from ?353 to ?670 and that's if you never made a claim so it's definitely a pricey area. What's really galling is that Confused shows the AA (my insurer) quoting ?412 - exactly half of what I'm paying, so they've essentially doubled the premium because of a prior claim. My damage never warranted underpinning - at least in the opinion of the Structural Engineer. I wonder what my position would be with regard to sueing the council for increased premiums, after all it was their tree that caused the damage in the first place.

Off topic slightly but given that all insurer's ask about flooding, there a shed load more homeowners going to be stung next year following this weeks weather.

[Al&Em]

I'm having a few problems with buildings insurance due to some subsidence over the years on a property we've recently bought (property is basically in great shape but a bit old, so has the odd crack and a few floors out of line - no problem getting mortgage on it). Does anyone know anything about the obligation of previous insurer to take on a property which has had some 'structural movement'?

[*Bob*]

I was under the impression that an existing insurer was obliged to continue cover in the event a subsidence claim (though obviously the premium would reflect this). The bit I'm not sure about it whether they're obliged to offer cover if the property changes hand - but a quick call to the relevant insurer would answer this.

The other thing to check is whether the property has actually 'subsided' or whether there has just been 'structural movement'. Eg, the house we bought has moved (a lot!) but there hasn't actually been a subsidence claim or any underpinning etc, so as far as any insurer was concerned, the house 'has not suffered from subsidence' and the premium was the same as a house that hadn't moved at all.

[ed_pete]

I'm pretty sure that the previous owner's insurer is obliged to carry on providing cover however, if there's been a gap, i.e. between completion date when the propery changed hands and now then I'm not so sure. Having made quite a few enquiries over the past few weeks it seems that if insurers offer cover at all on properties with any structual movement history then it's only likely if the property is given a clean bill of health by a Structural Engineer. But that no guarantee - so you could go the expense and effort of getting a report done and insurers could still turn you down or charge extortionate premiums.

[*Bob*]

An added confusion is that, with regards to the structural state of your property, two surveyors might give you a completely different picture, and both of their opinions might be different to the opinion of a structural engineer - this is important if you've got a house which looks dodgy but there are no docs or info regarding underpinning.

We cacked our pants about the house we bought (especially as we were moving from an area where subsidence was uncommon). Our survey said *ur-urrr* - the house must have been underpinned and if it hasn't then we ought to walk away. I tracked down the previous surveyor who said *ding* - there was a bit of movement and cracking but nothing out of order for a property of that age. I spoke to our surveyor again, who rubbished the other guy.

Some time later a little bit of cracking developed in an outside wall. Fearing the worst we got a structural surveyor round, who told us that *double-ding* the house was absolutely fine and was actually in a very good state and provided us with a letter to that effect.

We were most pleased, but a bit pissed-off as well with all the previous farting about.

[lozzyloz]

A lot of insurers won't insure in SE22 because it is a known subsidence area. Others will insure for silly amounts using subsidence as the excuse. Last year when searching for a good deal I came across ING's online insurance page. To my pleasant surprise the premium came to about half of what I was paying for a previous smaller property. I punched in the figures again. Same result. Just to make sure I called them and they quoted me a higher premium. I explained the on-line quote and they suggested I use that. I have. Let's see what happens with the renewal.

[Amelie]

Anyone with questions about insurance cover should phone the Association of British Insurers, I am fairly certain they provice advice over the phone. The regulatory body for insurers is the General Insurance Standards Council.

[jim_the_chin]

2 bed terrace buidings insurance went up 20% this year, no explanation why.

[nutty]

*Bob* Wrote:

-------------------------------------------------------

> If the building hasn't been underpinned, or if

> there's never been a claim for subsidence, then

> you won't have any problems getting getting

> building insurance (as ClareC says, Halifax are a

> good bet and this is normally their policy for

> SE22. We're with them as well). Even if your

> building has shown significant movement and might

> even be on the verge of needing underpinning, as

> long as a claim hasn't been made you should be

> ok.

>

> The problems start when there has been a claim

> made in the past.

I own a house that has had a claim made in the past and been underpinned but Halifax still do me quite a good deal.

[lpool]

We've just bought a new house in East Dulwich but the purchase nearly fell through because of being unable to find anyone prepared to insure the property. Typical victorian house with long term movement and some internal cracks in plaster. Finally found an insurer who was prepared to accept survey comments and confirm in writing as part of the policy that it was aware of previous movement. Getting this agreed makes any future claim easier as not being aware of all the facts is a major get-out clause for insurers these days.

[ChavWivaLawDegree]

I've never had a mortgage or house insurance. Just buy cheap crap no-one would want to burgle and buy a big dog, that should do the trick.

[Quaywe]

I just got a quote from Direct Line for ?690 for H&C cover for my 3 bed semi. Then I called my previous insurer: Higos Insurance Services and they beat the quote by 5% (now paying ~?650).

I had to shop around for ages to get that price (I paid ?850 last year!) because of SE22 being a subsidence hotspot (though my house has none and never has) and because I have a lodger.

All good now though and ?200 saved. Thanks Direct Line, and thanks Higos!