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UK Insurance - Sinking Into The Mire Of Subsidence Cover

Firstly, this is going to cost money. There will undoubtedly be a substantial excess, so you will be asked to pay the initial piece of the claim. Most policies now stipulate an excess of £1,000 but you could find one for less. It's best to have some money put to one side!

Secondly, your claim could take many months to finalise. There is a long set of exclusions. Here is a likely list. If any of these apply, you are on your own without any payment from the insurer.

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

Subsidence as a result of coastal erosion.

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

Settling of new structures or the settling of newly worked ground.

On a happier note there are the extras that are included in 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 are responsible for as the property owner.

Glass and sanitary fittings. 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 is very likely to be a clause further on into the policy that will clarify what you are allowed to claim for. Each item is treated as a separate item, not as part of a set. Thus, if your hand basin is accidentally damaged, don't wait for the company to pay out for a complete new bathroom suite!

Alternative Accommodation. This can be a very important benefit if it becomes dangerous or impossible to stay in your home. Your insurer will pay for alternative accommodation. This might be a local hotel or maybe the extra cost to family and friends if they can give you temporary shelter. At least one major online insurance company will also pay for your pets to go into boarding kennels if necessary. The policy might 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 the house, the person who buys it 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.

BASIS OF SETTLEMENT - All reputable policies will provide for 'reinstatement'. In other words they are offering 'new for old'. The building 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 (except any excess). The latest building regulations might mean increased costs. Not a problem - but it only applies to the damaged part of the building. Demolition, 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 fees for estimates, plans etc.

In all instances the insurance companies like to have control of the situation 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 your insurance company.

There are many issues that will arise during a claim involving subsidence. Because of 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 can all raise problems. It would take a whole volume to answer them all. One that is worth mentioning is that if you have changed insurance companies, the previous insurers might be called upon to contribute 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. You should not be affected by any negotiation between the companies.

But what happens should an underground pipe leak and cause movement and thus subsidence? What actual peril has occurred and what excess would you have to pay? Do your best to show that the claim should be dealt with by the the underground services peril. This 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.topicinfo.com

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 home and contents insurance with online quotes and secure online payment.

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