Guide to Underpinned Insurance
Obtaining insurance for a building that
has been underpinned can be quite time consuming. Mention that your
property has suffered from movement or has been underpinned and you are
likely to receive a " no thank you" response. This is a specialist area of
the market and to get the cover you need, you will need to speak to an
insurance company that know and can understand the nature of the risk they
are taking on.
What is subsidence.? -
Subsidence is the downward movement of the
ground supporting the building. Particular problems arise when the
movement varies from one part of the building to another making the
situation more acute. Other perils associated with subsidence are.
- Heave This is the opposite of
subsidence where the ground moves upwards.
- Landslip- This is a portion of land
that has slid down in consequence of a variety of causes.
Subsidence usually happens where:
- There has been mine or underground
activity in the area.
- Homes are built on top of clay soils
and either the water table drops due to a long, dry spell or water is
sucked out of the soil
- The soil is clay and Trees and Bushes,
extract too much water from nearby the property. As the clay contracts
it pulls the foundations, triggering deflection which may cause
structural damage to buildings. Different types of clay shrink and swell
at different rates
- Water leaks into the soil from, for
example, a broken drainpipe, this can lead to a washing away of the
foundations. This happens to soils with a high sand or gravel content
usually, or sometimes in chalk.
If a property has suffered damage caused
by ground movement, it is usually corrected by a process called
underpinning.
What is underpinning? in construction,
underpinning is a process by which buildings are strengthened and
stabilised by remedial work being carried out to the foundations.
Underpinning is achieved by extending the foundation, either in depth or
breadth so it either rests on a stronger soil stratum or distributes its
load across a greater area. There are a number of other methods of
dealing with property that has suffered movement but all are expensive.
Expense, is the real reason why insurance
companies shy away from insuring buildings that have previously suffered
subsidence or have been underpinned. As mentioned, to reinstate a
property that has been underpinned is expensive and insurance companies
believe that if a property has already suffered from damage from
subsidence, then it is more likely too have to be underpinned again in the
future. When calculating premiums for insurance, companies take in to
consideration, the likelihood that a property will suffer from subsidence
and charge an appropriate rate. Rating for home insurance , is calculated
an an area basis ( by postcode). If you property is located on certain
soil types or in areas where there has been recorded subsidence damage
then your premium is likely to be on the high side. These increased
premiums help insurance companies fund for future losses by subsidence.
However, whilst insurers calculate their premiums based on what they think
future claims will be, they are not in the habit of wanting to insure
property where there has already been a loss. If you live in a building
that has suffered from subsidence damage, the association of British
insurers recommend that you should try to insure the property with the
insurance company that held the insurance at the time of the loss. It is
standard insurance practice for the existing insurance company to continue
cover for any new owner. Of course, this is not always possible, for
various underwriting reasons.
When approaching a new insurance company
for a quotation, it is important to make them fully aware of all the
important facts and to make sure that they are fully aware of what , they
are being asked to insure. When you are offered cover, you must check the
Key facts and policy wording carefully to understand the level cover on
offer and any excesses ( the first portion of the loss that will not be
paid). Some insurance companies will offer cover on previously
underpinned buildings with a pre-existing exclusion clause. The effect of
this clause is to restrict cover so, if a problem occurs in a part of the
building where an incident has occurred before, no cover will be afforded
by the policy. Not all policies include a pr-existing condition clause.
There are several steps that can be taken
to help guard against subsidence.
Before planting new trees, think about the
soil type, if you are not sure as to the type of soil, beneath your
property, you can buy a soil testing kit. Check on the variety of tree
you are planting and how big it will be when fully grown. Be particularly
careful with shallow-rooted trees, such as Willow and Oak. Insurance
companies are now interested in property that is deemed to be within
influencing distance of a building. most want to know about any tree or
shrub within 20 feet of a property.
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