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Let me say at the outset, this is an expensive problem. There will inevitably be a serious excess, thus you will be asked to pay the first slice of the claim. The majority of UK house insurance policies now stipulate an excess of £1,000 but you can find one for less. I hope you have some money put to one side! Second, your claim might well take many months to finalise. There is a long list of exclusions. Here is a likely list. If one or more of these apply, you could well be without any help from your insurer. All the outside decks, patios, drives, paths, walls and so on are not covered unless your main buildings or outbuildings are damaged.. Subsidence as a result of coastal erosion. Movement of solid floor slabs unless foundations beneath outside walls are also damaged by the same cause Settling of newly erected buildings or the settling of newly worked ground. On a happier note there are the little plus points that apply to standard cover. This is where you actually get some accidental damage cover with your standard policy. As owner of the property you are covered for any damage to service pipes and underground cables Glass and sanitary fittings. Again accidental damage to your bathroom fixtures, built in ceramic hobs in your kitchen and all the fixed glass and glazing in your building. Beware, that there could well be a clause later on into the policy that will specify what you are allowed to claim for. Each item is treated as a separate entity, not as part of a set. Thus, if your wash basin is accidentally damaged, don't wait for the company to fork out for a complete new bathroom suite! Alternative Accommodation. This can be a very important benefit if it becomes dangerous or impossible to stay in your home. Your insurer will pay for you to be put up elsewhere. This could be a nearby hotel or maybe the additional cost to family and friends if they can give you temporary accommodation. At least one major online insurance company will also pay the boarding costs for any pets if you have to be away from them. Cover could also provide for either payment of rent or loss of rent due if you are a landlord. There is a limit, a sum insured which is usually 20% of the total value of the property as specified in the policy. Incidentally, if you sell the house, the person who buys it can enjoy the benefit of the cover up to the completion date provided they have no cover of their own at the time. WHAT WILL BE PAID - All reputable policies will provide for 'reinstatement'. In other words they are offering 'new for old'. The property will be repaired with new parts and should the entire structure be beyond economical repair, it will be completely restored with new materials and no payments from you (with the exception of any excess due). With some buildings, meeting new regulations might mean increased rebuilding expenses. Sadly, if only part of the building is damaged and restored, the remainder of the building would very likely come under the latest building regs and this expense would be down to you. Demolition, debris removal, shoring up and so on are all covered as are reasonable architects and surveyors fees, legal fees and fees for estimates, plans etc. Insurers prefer to be in control of the matter so if you notice cracks in your home, report it to them immediately. If you go and instruct your own surveyor they might well recommend drastic measures to prop up your house that might not be required. You would find yourself in dispute with your insurance company. There are many issues that will arise during a claim involving subsidence. Because of the amount of time that these claims can take, things such as trying to change your insurer, trying to sell your home and so on are all fraught with anguish. It would take a book to answer them all. One that is worth mentioning is that if you have moved your cover from one insurance company to another, the previous insurers might be called upon to contribute to your claim under the A.B.I. Domestic Subsidence Agreement. This prevents disputes between insurers as to which insurer pays for what. It should not affect you at all. We'll finish by considering what happens should an underground pipe leak and cause movement and thus subsidence? What actual peril has occurred and what excess would you have to pay? Do your best to prove that the claim should fall under the underground services peril. This way you do not have to pay the imposed excess for a subsidence claim. It is all down to what insurers call the 'proximate cause'. You must attempt to prove that the proximate cause of the damage is the leaking or broken pipe.
Article Source: http://www.financemanual.com
This article was created by Trevor Dace. He has many years of experience working as a claims adjuster with UK insurance companies. His website www.instant-online-insurance.co.uk offers home insurance from tesco insurance with online quotes and secure online payment.
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