Insurance for underpinned house

leahyl

Hi all,

I'm currently looking at a house (have an offer on it) which, I've been told by the auctioneer, has been underpinned.

I didn't realise until I read up about it that it's difficult to get insurance for a house that has been underpinned - I don't understand this. The problem has been rectified so why would it be difficult to get insurance?

Are there certain areas of Cork City that have this problem more than others? The house I am looking at is on the Northside.

Thanks

blindsider

Hmmmm.

Underpinning is pretty commonplace. Getting subsidence insurance is notoriously difficult - esp. on a house that has been under-pinned. In fact, it's probably impossible.

However, regular house insurance shouldn't be a problem.

Re the house, get it very well surveyed - get a good engineer to do it and explain your concerns re underpinning - get them to be specific re this in the report.

BOL!

omahaid

Ya, is it subsidence cover they are refusing or are they making any form of insurance difficult? We're closing on a house this week and we couldn't get subsidence cover and the bank told me that half of Cork is in the same boat. Although the house I sold was on the north side and I never had an issue with subsidence cover, probably depends on the exact area perhaps. Either way, hard to see them refusing fire cover due to underpinning...

leahyl

Thanks guys, to be honest I don't know too much about house insurance and that kind of thing!

The offer hasn't been accepted yet but in the event that it is, I just wanted to know what the story is with insurance If it has been underpinned.

What is the reason that they won't insure a house if it has been underpinned - I mean isn't the problem fixed then?

So it is possible to get insurance without the underpinning side of it?

Thanks again

ABajaninCork

A house being underpinned isn't the end of the world. And yes - you're right. If it's been done correctly, then the house shouldn't move so much again. I know that subsidence is common on the South side all right - Bishopstown, Blackrock, Douglas, Wilton and Glasheen are areas that come to mind. Don't forget - Cork is built on marshland! A lot of the mainstream brokers will not give you a quote for Cork at all!! Doesn't matter where in Cork you're from...Think there's another thread about this on the forum. The only place I can think of Northside is Blackpool. But that's prone to flood.

But I'd get a broker to enquire about insurance for an underpinned house. It is possible, but you need to get specialists to get you the appropriate cover.

blindsider

leahyl wrote: »

Thanks guys, to be honest I don't know too much about house insurance and that kind of thing!

The offer hasn't been accepted yet but in the event that it is, I just wanted to know what the story is with insurance If it has been underpinned.

What is the reason that they won't insure a house if it has been underpinned - I mean isn't the problem fixed then?

So it is possible to get insurance without the underpinning side of it?

Thanks again

Talk to your engineer re underpinning and insurance - for your own peace of mind...............

Insurance: See ombg.ie

they are our brokers - no other connection

Very efficient and IMO very competitive.

I don't think you'll have any issues re insurance.

DanWall

Before taking out Insurance look at the exclusion clauses, you will be surprised what some insurance companies will not pay for.

ABajaninCork

You need to read the documents carefully, but if the OP is taking out a mortgage, then insurance is required. No getting around that!

LeNNoX

OP,

If not said already, ask the Estate Agent to find out who currently insures the house. They should be able to speak with the seller for this.

Also, you should seek all documentation /certs that go with underpinning the house so you have the full details should any issues ever arise.
These details will be of use when your engineer looks at the house.

Best of luck with the bid.

p.s. I used an engineer a few weeks back which I'd recommend, PM me if you want the details. (he's no connection to me other than I was a customer).

Ron Burgundy II

If underpinning was carried out on the previous homeowners insurance then the cause was escape of water from drains or a watermain.
Make sure you get a cctv survey carried out on the drains to make sure they good.

Also try the AA I heard that they will cover you for subsidence but they have a huge excess on this policy

ABajaninCork

I don't know what the standard subsidence excess is here, but back home in London, it's £1500 depending on the insurer! I think large subsidence excess is the norm TBH.

Harry Angstrom

Insurance companies are ripping people off left, right and centre at the moment if you happen to live anywhere near an area with subsidence. McCarthy Insurance on the South Mall have a policy that excludes subsidence. It's worth ringing them for a quote.

DanWall

Why would you want a quote from a company that excludes subsidence?
Below is exclusions that I have extracted form the policy of a major insurance policy

Exclusion clauses

loss or damage to walls, ceilings and tiles caused by water leaking from shower units or baths

where the Damage is caused by escape of water from any fixed water or heating

installation or domestic appliance the first €600 of each loss, unless a higher voluntary Excess amount has been selected, will apply

Theft
caused by You or any members of Your household or any other person lawfully at Your Home

loss or damage caused by felling of trees or lopping of branches ( must I let it grow until falls?)

malicious damage
to boundary walls, hedges, tennis courts,
gates, fences, terraces, patios, driveways,
footpaths, swimming pools, lawns, trees,
shrubs or plants

Subsidence

viii loss or damage which originated before this insurance came into force

ix the first 1,500 of each and every loss

iv loss or damage resulting from the bedding down of any structure

ii loss or damage caused by movement, settlement or shrinkage

ix loss or damage caused by mechanical, electrical or electronic defects, breakdown or malfunction

I loss or damage caused by storm or flood
ii loss or damage caused by weight of snow
iii Money
iv loss or damage caused by impact other than impact by a vehicle train or animal (what about something from the sky?)

[/I]

Harry Angstrom

DanWall wrote: »

Why would you want a quote from a company that excludes subsidence?

Ya see, where I'm living, there is no history of subsidence. The only subsidence suffered in my area comes from houses that were built close to a stream and a swamp. I don't see why I should have to subsidise the stupidity of the construction of houses in that area. Therefore, I'll gladly pay for my insurance premium without it being loaded with a subsidence clause.

richie1313

McCarthy Insurances, 2 South Mall, Cork are now doing Insurance Cover for Underpinned Houses etc.

beer enigma

Lots more choice these days now the brokers are offering quotes - We went through O'Leary Insurance and halved our renewal with increased cover.

Hopefully the old days of seeing homeowners with underpinned houses as shooting fish in a barrel have gone.

Stepping Stone

Harry Angstrom wrote: »

Ya see, where I'm living, there is no history of subsidence. The only subsidence suffered in my area comes from houses that were built close to a stream and a swamp. I don't see why I should have to subsidise the stupidity of the construction of houses in that area. Therefore, I'll gladly pay for my insurance premium without it being loaded with a subsidence clause.

I work in the area of subsidence investigation. The causes are many and varied. Do you know what the structural geology beneath your property is? Are you confident that you know all about the prior land use? 100% sure that you will never have issues with groundwater/ water pipes bursting/ leaking and washing your foundations away? :rolleyes:

These are three of the most common ones. You would be amazed how often it is a combination of the above. You would also be surprised how often a house is partially underpinned and the owners are shocked when a decade on, the rest has to be done and the insurance won't cover it. Houses can start to subside at any stage. The most ones we work on are ones that were built between the 30s and the 70s. You would also be amazed how blissfully unaware people are that their houses are subsiding. I know that I am hyper aware, but people just seem to think that a little filler or paint to cover cracks is as far as it goes. I walk down the street and I can spot subsiding buildings left right and centre in Cork. No area is guaranteed to be subsidence free. We often notice a trend where one person recognises subsidence issues and the whole row/ road/ estate will suddenly discover that those cracks, warped windows, etc are not 'just normal'.

I suspect that you are by far more likely to suffer subsidence in Cork than you will a fire or theft. It is everywhere.

dwiseman

leahyl wrote: »

Thanks guys, to be honest I don't know too much about house insurance and that kind of thing!

The offer hasn't been accepted yet but in the event that it is, I just wanted to know what the story is with insurance If it has been underpinned.

What is the reason that they won't insure a house if it has been underpinned - I mean isn't the problem fixed then?

So it is possible to get insurance without the underpinning side of it?

Thanks again

It is extremely difficult to get any new insurance quote on a house in an area that is deemed to suffer from subsidence. This is the case with policies that cover subsidence and policies that do not, most companies wont even quote to new business in these circumstances. Liberty insurance now offer insurance policies to houses in areas that are deemed to suffer from subsidence if the house being insured has already been underpinned. The policy will not cover subsidence as the work to fix the issue has already been carried out. An engineers report to state this will be sought by the insurance company before the policy takes effect.