Wednesday, 16 March 2011
Problem Properties with Flood or Subsidence, Underpinning Issues for Insurance
Due to the climate changing over the past few years there have been more floods and subsidence is now at a peak. Insurers due to the flooding are gradually pulling out of the market place, or issuing renewals that the client cannot afford with huge flood excesses, however, they are bound to reinsure a current client until 2011.
The Insurers are not obliged to pick up the policy if the property changes hands either, that leaves Estate Agents with a major problem, when it comes to marketing the property. This also applies to let properties as the above conditions need to be made clear to the tenant.
If you are based anywhere near a flood plain, flood zone that is listed on the environment agency website, why not do a search on the postcodes of the property its free after all. Plus giving correct details to a prospective client will always look good on your part.
I believe that all properties that have been Flooded or have inherent problems such as subsidence that has been dealt with, must be displayed on any property listing, and appearing on any details including websites. This then places it clearly in view of all the people wishing to purchase. After all what is the point in doing all the work on a property and then losing the sale due to a problem arising such as client cannot obtain insurance. There is a possibility that a client may take action against an Estate Agents/Letting Agents Professional Indemnity policy where the details are not disclosed correctly prior to sale.
If you have a client that wishes to move ask them the size of the claims involved and when they have been flooded, as the purchaser will only be able to obtain insurance with these facts. Also, details of any floodgates, or defences that have been put in place.
Please note at present clients cannot go on the internet and purchase insurance for underpinned, thatched, flooded properties, or ex offenders. If they do the purchase online without referral to the insurer the policy will be invalid! 60% of all insurance bought online is not valid due to non disclosure of claims or facts.
I have been working in the insurance industry over 20 years and never has it been so important to disclose all relevant facts. The company I work for T R Youngs has insured many properties in flooded areas including; Cockermouth, Keswick, Morpeth, Worcestershire, Cambridgeshire, Hull, Nottinghamshire, and any area near a river.
Underpinned properties are quoted for immediately! There is no need for us to see any surveys or have a structural survey specially done for the purpose which some insurers will require and that can cost £500. We can write policies for Property Owners as well.
Ex Offenders we are able to cover as well, this must be disclosed by tenants and landlords, and purchasers. There are hundreds of thousands of people that do not have the correct policy due to a criminal conviction not being disclosed.
Source: Dave Burn at Allstyles Insurance / TR Youngs Insurance Brokers - To find out more CLICK HERE
Posted by Philip Suter at 10:31