Mortgage without subsidence insurance cover

wby

Trying to get a mortgage in an area in Cork that has been 'blacklisted' by insurance companies for subsidence. Most of them don't insure at all and only a couple provide insurance without subsidence cover. (The house doesn't have subsidence but is an an area where some do)
The trouble is that I have heard most banks wont release a mortgage to a first time buyer on a house with no subsidence cover in the insurance. I have heard this of BOI, AIB and TSB. Not sure about Ulster Bank so hoping to go with them.

Has anybody any experience of this?
The areas which are 'blacklisted' for subsidence are very large and all over Cork so I find it hard to understand how the houses are selling at a normal rate in these areas if this is the case.

Eldarion

wby wrote: »

The areas which are 'blacklisted' for subsidence are very large and all over Cork so I find it hard to understand how the houses are selling at a normal rate in these areas if this is the case.

There's plenty of areas in Cork without subsidence risk. I know exactly the areas you're referring to and those houses are selling at a normal rate with the subsidence risk factored in. They'd be going for a lot higher if it wasn't an issue.

Keep shopping around for a company that will insure for subsidence, you will have to pay through the nose for it though but that's offset against the discount you're getting on the property.

wby

I didnt think we could get insurance for it with subsidence. Thats the impression TSB and the broker gave. If we could it would be great if anyone could recommend a company that they managed to use.
We were just hoping Ulster bank would be ok with giving a mortgage to a house without subsidence in the cover. They gave approval and did their valuation and havent mentioned it. But I just heard it can become an issue when you go to draw down the funds.

muireannwalsh

wby wrote: »

I didnt think we could get insurance for it with subsidence. Thats the impression TSB and the broker gave. If we could it would be great if anyone could recommend a company that they managed to use.
We were just hoping Ulster bank would be ok with giving a mortgage to a house without subsidence in the cover. They gave approval and did their valuation and havent mentioned it. But I just heard it can become an issue when you go to draw down the funds.

Hi
How did you get on with finding an insurer to cover subsidence? We're buying on the South Douglas road & have just found out that the address is blacklisted. The engineer says there is no evidence or liklihood of subsidence.
If you could let me know how you got on it would be great, we're currently ringing around looking for quotes!
Thanks a lot

wby

Ulster Bank said subsidence cover was preferable but they would give the mortgage without subsidence cover as so many ppl are not able to get it. Our engineers report was similar and found no evidence of potential subsidence.
We went to an insurance broker and asked for a quote with and without subsidence. They took 2 weeks and still hadn't provided the quote and gave us an extremely high quote with Zurich for just insurance excluding subsidence cover.
So we just went to another broker and got an immediate 300 euro less quote (also with Zurich!?) excluding subsidence and went with that.

cpoh1

wby wrote: »

Trying to get a mortgage in an area in Cork that has been 'blacklisted' by insurance companies for subsidence. Most of them don't insure at all and only a couple provide insurance without subsidence cover. (The house doesn't have subsidence but is an an area where some do)
The trouble is that I have heard most banks wont release a mortgage to a first time buyer on a house with no subsidence cover in the insurance. I have heard this of BOI, AIB and TSB. Not sure about Ulster Bank so hoping to go with them.

Has anybody any experience of this?
The areas which are 'blacklisted' for subsidence are very large and all over Cork so I find it hard to understand how the houses are selling at a normal rate in these areas if this is the case.

You dont need subsidence cover from your insurance company to get a mortgage with BOI or AIB, 100% positive on that.

If you are really stuck ask the bank to provide cover for you. Its expensive but it gets you on the field and you can change once you have your mortgage.

Subsidence is an issue in cork with houses that have poor foundations and drainage systems combined with to a lesser extent the bed type. I know of one person who suffered foundation slippage due to a burst pipe and claimed off his insurance despite having a "no subsidence cover" clause.

muireannwalsh

wby wrote: »

Ulster Bank said subsidence cover was preferable but they would give the mortgage without subsidence cover as so many ppl are not able to get it. Our engineers report was similar and found no evidence of potential subsidence.
We went to an insurance broker and asked for a quote with and without subsidence. They took 2 weeks and still hadn't provided the quote and gave us an extremely high quote with Zurich for just insurance excluding subsidence cover.
So we just went to another broker and got an immediate 300 euro less quote (also with Zurich!?) excluding subsidence and went with that.

Great, thanks so much for your help. Sounds like proceeding without subsidence cover is the way to go

jimgoose

muireannwalsh wrote: »

Great, thanks so much for your help. Sounds like proceeding without subsidence cover is the way to go

Zurich and FBD will cover for subsidence, if that's any help. Best of luck to you and yours.