What specialist insurers and brokers look for

When insurers consider home insurance for a house with historic subsidence, they will typically ask for evidence and documentation relating to repair work and what caused the subsidence. They will also want to know if there’s any ongoing risk.

Documentation

The more information you can give about the history of the property, the easier it can be for insurers to assess the risk. Some examples of documentation include:

• Structural engineer’s or surveyor’s reports

• Details of any previous insurance claims

• Information about repair works or underpinning

• Guarantees or warranties relating to completed works – a Certificate of Structural Adequacy (CSA) and an Insurance-Backed Guarantee (IBA) are particularly important from an insurance and mortgage standpoint.

Any documentation relating to underpinning or repairs is especially important as insurers will want to know why that particular method was chosen and if ground movement has stopped.  

The cause of subsidence

Subsidence can be caused by several factors, each bringing its own level of risk. Some of the common causes include clay shrinkage, leaking drains, tree root influence and poorly compacted or made ground. Understanding what caused the subsidence in the first place can help insurers determine if the problem has been addressed and if there’s an ongoing risk of movement.

Current condition of the property

Insurers will want to know whether the movement is historic or ongoing. This is why it’s important to gather documentation of structural assessments and completed repairs as it will reassure companies that there’s no further ground movement.

Why subsidence history or underpinning makes a property harder to insure

The cost of repairing subsidence can be significant, which is why insurers consider properties with historic subsidence as a higher potential risk.

If a previous claim was made on the property, it can be difficult to establish if the underlying causes were fully addressed, especially if the ground conditions that caused the original movement the original movement are still present.

Underpinned properties pose a similar challenge. Underpinning typically involves major structural repairs so insurers will need to know why it was chosen and if it successfully addressed the issue.

Will this always affect your insurance?

It depends. Whilst subsidence can affect the cost and attainability of home insurance, the impact it has on the policy depends on the individual property and its history. There are several factors that insurers need to consider, which include:

• How long ago did subsidence occur?

• Has there been any movement since?

• How successful was the repair work?

• Any previous claims on the property

• What remediation works were done

• Monitoring post remediation works

• Structural engineers report

That means homeowners may still be able to obtain subsidence cover through a standard insurance company. In circumstances where this isn’t possible, a specialist broker may be able to help. What’s important however, is that you provide honest and accurate information about any previous movement.

Practical steps: what homeowners can do to get better cover

Homeowners who are looking to insure a property with historic subsidence should be prepared and have all the relevant documentation to make the process more straightforward. So, where to begin? 

1. Ensure you have all the paperwork. Gather previous survey and structural engineer’s reports, any insurance correspondence and details of any claims. This ensures you have all the background information.

2. Discover what remediation works were carried out. It’s important to know if the property was underpinned, or if other repair works were carried out and when.

3. Keep records. You should keep records of any monitoring and structural assessments that have been carried out, which can help demonstrate that the movement has stopped.

4. Check validity of guarantees and warranties. If any repairs came with a guarantee or warranty, you should keep the documentation and check how long it’s valid for.

5. Transparency is key. Ensure you provide accurate, up-to-date information about the property’s history. If you fail to disclose previous subsidence, it can cause issues if you need to make a claim in the future.

6. Consider specialist advice. If you find that standard insurers are unable to provide suitable cover, a specialist broker may be able to find alternative options.

7. Look beyond the premium. It goes without saying that the cheapest policy is not necessarily the most appropriate one for your circumstances. You should check the level of subsidence cover, exclusions, excesses and any other conditions of the policy.

Historic subsidence or underpinning can make obtaining home insurance more complicated, but it doesn’t mean a property is uninsurable. Homeowners should keep all the evidence and documents relating to historic subsidence or repairs to help the claims process go smoothly. Mainmark works closely with insurers and loss adjusters to accurately assess ground-related issues and if needed, deliver reliable, engineered solutions. To learn more, contact us today.