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UK Home Insurance - Subsidence, That Sinking Feeling

Let me say at the outset, this is going to cost money. There will undoubtedly be a wealth reducing excess, i.e. you will be made to pay the initial slice of any claim. Most UK home insurance policies now impose a £1,000 excess but you might shop around for less. It's best to have some money put to one side!

Second, your claim will take months, if not years to resolve. There is a long set of exclusion clauses. Here is a typical list. If one or more of these apply, you might well be without any help from your insurance company.

All the outside patios, gates, drives, terraces, decks, paths and so on are not covered unless your main buildings or outbuildings are damaged..

Movement caused by coastal erosion.

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

Settling of new structures or newly made-up ground settling.

Then there are the extras that apply to standard cover. This is where you actually get some accidental damage cover with your standard policy.

Underground service pipes and cables. 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 you are covered against accidental damage to your built in ceramic hobs, bathroom fixtures and all windows in the building. Beware, that there is very likely to be a clause later on into the policy that will clarify what you are allowed to claim for. Every item is treated as an individual item, not as part of a suite. Thus, if your hand basin is accidentally damaged, don't wait for the company to pay out for a complete new bathroom suite!

Stand-By Accommodation. Very important if your home is made uninhabitable owing to serious damage. The insurance company will pay for alternative accommodation. This could be a local hotel or possibly the additional cost to family and friends if they can give you 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. The policy could also provide for either loss of rent, if you are a landlord, or payment of rent due. This could be limited to, a sum insured which is normally around 20% of the total value of the property as specified in the policy.

Incidentally, if you sell your property, the person who buys it can enjoy the benefits of the policy up to the completion date provided they have no cover of their own in force at the time.

WHAT WILL BE PAID - All reputable policies will provide for 'reinstatement'. That is, in effect, 'new for old'. The property will be restored with new materials 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). With some buildings, meeting new regulations might mean increased costs. Sadly, if only part of the building is damaged and restored, the remainder of the building might then come under the latest building regs and this updating and its related costs would be down to you. Demolishing, debris removal, shoring up etc will all be covered as are reasonable architects and surveyors fees, legal fees and fees for plans, estimates and so on.

Insurers prefer to have control of the matter so if cracks start appearing in your walls, report it to them immediately. Instructing your own surveyor could end up with them recommending that you prop up your house when it might not be required. You will find yourself in dispute with the insurance company.

There are countless issues that will 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 clarify them all. One I will just mention is that if you have changed insurance companies, the previous company might be required to make a contribution to your claim under the A.B.I. Domestic Subsidence Agreement. This prevents disputes between insurers as to which insurer pays for what. It should not affect you at all.

But 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 demonstrate that the claim should fall under 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: http://www.uberarticles.com/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 tesco online insurance with online quotes and secure online payment.

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