SUBSIDENCE INSURANCE is a specialist product but what exactly does it cover? The answer is not straightforward and depends on the policy and provider you choose.
In a classical sense subsidence insurance should protect you from your property suffering major structural damage caused by landslip, ground heave and the ground moving beneath it.
The fact is that most standard home insurance policies will cover against this risk. It is something they normally charge a large excess for – around £1000 or more. If you are after comprehensive insurance then the standard policy will normally cover you against subsidence, just check the excess.
If you think the excess is too high then speak with your insurer and they may be prepared to reduce the excess but expect an increase in policy price as a result. The fact is that if you have a subsidence claim it will normally cost a lot to fix so the high excess is there as much to assist towards the fix as deter you from using the insurance.
You can get specialist subsidence insurance without any prior claim on subsidence but the specialist nature means you will more than likely be better off going the standard insurance route.
Where subsidence insurance really comes into its own is when you have had a prior claim and are now finding it very difficult to get standard home insurance or facing massive premiums and excess values in the event of it happening again.
A good specialist provider will understand the subsidence you have suffered, the remedy taken to fix it and the likelihood of it happening again. If repaired properly the chances of any problems recurring are minimal so the penalty you pay on insurance is actually not logical – you are probably a lesser risk in the future than a normal standard home.
This sort of understanding allows the experts to provide you with the cover you need. Subsidence insurance really only comes into its own when you have had a previous claim and the expert should use their specialist knowledge to minimise the cost to you.
That doesn’t mean you are going to get the insurance at your before claim levels or less, but it does mean you have the very best chance of getting the right cover, including a sensible excess in case of subsidence in the future, at a reasonable price that takes into account your claims history and all other factors.
Check out The Property Insurer for one of the UK’s best providers of subsidence insurance.
The Property Insurer