UK Buildings Insurance - Sinking Into The Mire Of Subsidence Cover

Firstly, this is an expensive problem. There will inevitably be a healthy excess, in other words you will be asked to pay the initial piece of any claim. Most policies now impose an excess of £1,000 but you can shop around for less. It's best to have some savings put aside!

Second, your claim could take many months to complete. There is a lengthy set of exclusions. Here is a likely list. If one or more of these apply, you are on your own without any payment from the insurer.

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

Subsidence as a result of coastal erosion.

Movement of solid floor slabs unless foundations beneath outside walls are also damaged by the same cause

Bedding down of new structures or newly made-up ground settling.

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

As owner of the property you are covered for any damage to underground cables and service pipes.

Glass and sanitary fittings. Again you are covered against 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 is a clause further on into the policy that will restrict what you are allowed to claim for. Each item is treated as a separate entity, not as part of a suite. Thus, if your hand basin is accidentally damaged, don't wait for your insurer to fork out for a complete new bathroom suite!

Alternative Accommodation. Very important if your home is made uninhabitable owing to serious damage. Your insurer will pay for you to be put up elsewhere. This might be a nearby hotel or maybe the extra cost to family and friends if they can help out with temporary accommodation. At least one major online insurance company will also pay the boarding costs for any pets if you have to be away from them. Cover might also provide for either payment of rent or loss of rent due if you are a landlord. There is a limit, a sum insured which is usually 20% of the total sum insured for your buildings cover.

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

WHAT WILL BE PAID - All good policies will provide for 'reinstatement'. In other words they are offering 'new for old'. The House will be repaired with new materials and should the entire structure be beyond economical repair, it will be completely restored using new materials and no payments from you (except any excess). The latest building regulations might mean increased costs. Sadly, if only part of the building is damaged and restored, the remainder of the building would very likely come under the latest building regs and this expense would be down to you. Demolishing, removing debris, having the building shored up and so on will all be covered as are professional fees such as architects and surveyors, legal costs and charges for estimates, plans etc.

Insurers prefer to be in control of the situation 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 insurance company.

There are many issues that can arise during a subsidence claim. Because of the length of time that these claims can take, things such as trying to sell your home, trying to change your insurer and so on can all raise problems. It would take a book to answer them all. One I will just mention is that if you have moved your cover from one insurer to another, the previous company might be required to make a contribution to your claim under the A.B.I. Domestic Subsidence Agreement. This is to prevent disputes between insurers as to which insurer pays for what. It should not affect you at all.

But what happens should an underground pipe leak and cause movement and thus subsidence? What insured peril should apply and what excess will you have to pay? Do your best to prove that the claim should be dealt with by the the underground services peril. That way you are not required to pay the large excess of a subsidence claim. The policy clause in question is known as the 'proximate cause'. You need to be able to show that the proximate cause of the damage is the leaking or broken pipe.