Building Insurance cover on a house that is underpinned?

froger

Hello,

Currently trying to finalise a house purchase on a house in Cork city that was underpinned in the last few years. There is certification to prove that the work was carried out to the correct standard and the enigneers have given the green light on the work that was carried out .

As a condition to draw down the mortgage I need to get building insurance, but the small few insurance companies that will insure the house only do it without subsidence cover.

Has anybody been able to obtain house insurance with subsidence cover on a house that has been underpinned?? If so who was the insurance with?

I am not sure how anybody buys any house in around the city area if the bank needs insurance with subsidence cover, as nearly all the south side of the city suffers from subsidence issues. I would be willing to pay more for the cover as I understand there is a bigger risk for them, but just a flat out NO isn't very helpful.

beer enigma

Having spent the last couple of years searching round, I'd say the answer is no. In fact you are lucky to find anyone that will insure it even without subsidence cover as most blacklist areas of Cork for that reason.

We bought a house in Cork about 10 years ago and were lucky that AXA would insure it, albeit with a subsidence exclusion. We've subsequently had the house underpinned and likewise have all of the certification to go with it. It is only the fact that an insurer cannot refuse renewal on a property that they cover unless you have breached policy conditions that AXA still cover us, again without subsidence cover.

I've been searching for a cheaper quote for years and nobody will touch it.

I was told that lending banks will sometimes provide insurance in these circumstances, if only to get the deal over the line, so it may be worth contacting your lender. Most have the ability to place a risk although I'd still be doubtful on it covering subsidence.

froger

Thanks Andip, AXA and AIB (underwritten by AXA) were the only companies to give me a quote (without subsidence cover). The rest couldn't get me off the phone quick enough.

With the underpinning done right I would hope that would solve the problems of subsidence, for such a big purchase it sure feels like a lottery at times.

beer enigma

froger wrote: »

Thanks Andip, AXA and AIB (underwritten by AXA) were the only companies to give me a quote (without subsidence cover). The rest couldn't get me off the phone quick enough.

With the underpinning done right I would hope that would solve the problems of subsidence, for such a big purchase it sure feels like a lottery at times.

Well good luck with it ! What annoys me is the amount of companies that won't even quote for the cork area (even without subsidence cover) & with no competition, the remainder can pretty much charge what they like.

Not sure what area of Cork you are in but in some areas like mine around Ballintemple, even AXA won't quote - its only the fact that they already insure us that they requote.

Just wondering if anyone else in a heavy subsidence area has quotes recently for any other insurer ?

Jon_459

We've had ours insured for years with Bank of Ireland (can't remember the underwriter) and subsidence is covered.

Tried another few companies a few years ago and no-one would offer subsidence cover.

Still, BOI aren't that expensive.

Karmella

Yeah I'm living close to Ballintemple aswell - further up past Beaumont and I'd estimate that at least 50% of the houses near us have been underpinned in the last 5-6 years - we are luckily doing ok so far.

Anyway, we are insured with FBD. Can't say for sure if subsidence is included actually now that I think of it .....

.... nervously wanders off to find policy small print .... :eek:

beer enigma

Jon_459 wrote: »

We've had ours insured for years with Bank of Ireland (can't remember the underwriter) and subsidence is covered.

Tried another few companies a few years ago and no-one would offer subsidence cover.

Still, BOI aren't that expensive.

The older policies such as yours had subsidence included and as they can't change material policy terms at renewal, they are obliged to still offer it to you - you are very lucky ! Don't change insurer :-))

BOI won't take on any new risk in the area unless its as part of a new loan and even then they won't give newbies subsidence insurance.....

With us, the rules had changed by the time we moved back to cork and subsidence was excluded from all of the new policies. It's now got to a stage where most insurers just won't quote at all.