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by Admin
Posted on 27-03-2023 11:43 AM
The year 1976 saw the first surge of subsidence insurance claims. Four decades later, why is subsidence the forgotten peril. The subsidence story starts in the early 1970s.
Although subsidence has damaged properties in the uk for hundreds of years, it simply wasn't a consideration for insurers as domestic policies offered no cover. However, with the boom in private home ownership in the early 1970s, mortgage providers thought this would be a useful addition to protect their position. Insurers were happy to oblige by adding a low risk 'nice to have' peril to policies, keeping their corporate customers happy.
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What is subsidence home insurance?
Subsidence is caused by the undermining of the foundations of a property (usually caused by escape of water from underground pipes). Downward movement in the foundations can result in cracks in the structural walls of a building.
Managing a successful subsidence claim is essential in restoring your home to a structurally sound state. However, subsidence claims can be very difficult to negotiate, and require dedicated professional representation with detailed insurance knowledge, to succeed. To establish if you have an admissible subsidence claim it is necessary to prove the cause and source of any cracks. This requires a specialist investigation and engineers report to determine the exact cause of the damage.
Part 1 of this blog discussed what subsidence was, how to rectify it and whether it is covered by buildings and contents insurance policies. Part 2 explores in more detail subsidence and associated insurance claims in relation to commercial property. Commercial property as i discussed in part one, subsidence, as well as heave and landslip, is generally covered by most buildings and contents insurance policies for private homes in the uk. Now for the not so good news; subsidence is not as widely covered by commercial property insurance policies. If a business owns or leases a commercial property for which it has purchased buildings insurance cover, it would be wise to review the policy documents to ensure damage and/or loss caused by subsidence is covered.
Most insurance policies do not cover damage to a home due to mine subsidence. The mine subsidence insurance fund provides low cost insurance coverage in 37 ohio counties for homes damaged due to mine subsidence caused by underground mines. Report your claim to an agent or the insurance company. Your agent or insurance company will notify the ohio mine subsidence insurance underwriting association, which administers and adjusts the claim. Insurance coverage is mandatory in 26 of the 37 counties, with a low annual premium. Available for 1- to 4-family dwellings having at least 50% of the living area occupied. Mobile homes and farm houses are also eligible.
Loss adjusters can play a valuable role in assessing a council's liability in a tree subsidence claim. This could include a review of the council's tree management policies and procedures, an inspection of the tree in question, and even a review of any relevant reports or complaints. They may also consult with arborists, engineers, and other experts to determine the cause and extent of the damage. Once the loss adjuster has completed their investigation, they will provide a findings report that will give both a summary of the council's liability for the damage and recommendations for any necessary repairs or remediation.
The main perils relating to damage to the building and covered under a standard building insurance policy are: fire, lightening, explosion, earthquake, riot, civil commotion, strikes or labour disturbances, malicious damage / vandalism, impact damage, storm tempest and flood, subsidence landslip and heave. All policies contain terms and conditions and exclusions so it is important to understand the damage and the policy and the relationship between the two. Policies generally cover reasonable surveyor’s fees necessarily incurred in the reinstatement of the building. Often insurers will require a professional report when a claim is lodged. Often the most damage and long running claim will relate to subsidence.
Subsidence insurance cover is standard on most domestic buildings insurance policies. If your insurer thinks it may be subsidence they will normally arrange for an expert to inspect the damage and advise whether it is covered by the policy. If arranged by your insurer you will not have to pay for this inspection. Most valid subsidence claims are subject to a policy excess, typically £1000.