We were contacted by one of our property-owning clients who was dealing with water leaks in the underfloor heating pipes in one of his tenanted flats.
His tenant had moved out because of all the disruption. And our client was obliged to give a substantial £500 rent reduction to the incoming tenant while the pipes were being fixed.
Our client had a real fear that there was a subsidence risk so having the right broker on their side mattered.
Challenging Thames Water
This is a property that we have insured for a number of years. It’s a big house, split into seven flats.
One of the leaseholders wasn’t happy with the escalating cost of the insurance they had in place, so they came to us. Since then, we’ve helped them with a number of issues. These have been mainly leaks and complications emanating from leaks.
One example of our support is when Thames Water once tried to get them to pay for pipes that were damaged. We researched the situation and we helped them negotiate with Thames Water because the pipes were actually the responsibility of Thames Water, and not pipes owned by the property.
Could it be subsidence?
In the winter of last year, a resident in one of the apartments reported that parts of the window were deteriorating quickly. They were concerned that this could be part of a bigger issue.
Subsidence was mentioned by them as something to be hugely concerned about. It is an old property in London, it’s got movement, but the movement is most likely historic rather than subsidence. So it is effectively not a claim now, but it had to be notified to the insurers.
An insurance broker that’s on your side
Having notified us of the cracks, Lisa, our Claims Manager, advised our client to get the drains checked – which turned out to be fine. Lisa advised our client to inform the insurers of the issue, which they did. The insurer noted the present position. Lisa did not want this to escalate, or be noted as subsidence on file, because this had not been proven,
Our client paid for someone to come out and monitor the cracks, it appeared to be historic and weather movement i.e. a dry summer and wet winter. The property was moving but couldn’t really be classed as subsidence. Because Lisa also spoke to the insurer, it ensured that they didn’t make it a claim.
Surveyors that sit on the fence
The Surveyors who had visited the property had been distinctly ambiguous about the actual cause of the cracks, citing possible pipes? Possible drainage. Possible tree root infiltration. Possibly another unknown cause?
Whilst it’s understandable for surveyors to be vague, because they don’t want to get the blame if someone reads a survey report and heads down one road. They may invest in repairs for maintenance, only to find that they have repaired something that wasn’t the cause. It is understandable, but it doesn’t help those who are paying for the survey. So, we make sure we understand the situation, we review the reports. and visit the location when possible. We try and help the client navigate their way through such complicated mires.
On this subject, we had recently had an inquiry from a person with a similar issue at a different property whose broker had let them down badly and left them with a policy that excluded subsidence. Even though they had never had subsidence.
Action points
So, we advised our client what steps to take which involved the surveyor revisiting. Our expertise allowed us to notify the insurer of the issue and absolutely ensure that subsidence was not going to be excluded. Lisa made sure that the client regularly checked for any movement in the cracks. Everyone understood where they were.
Fast forward a few months and the renewal became due. And thanks to our prompts and reminders, everything had gone according to plan. However, this didn’t stop the insurer inviting the policyholders to renew with an exclusion of subsidence on their policy. This was not going to happen on our watch!
Does the insurer stick to the agreement?
We reminded the insurer of the agreement that had been made. We always have strategies in place to overcome excuses and arguments from the insurer. You might have seen our other articles about how hard we work to build strategies to prevent insurers from making ridiculous decisions or at least reversing their ridiculous decisions, (check out this blog). Which happens more often now than it ever did.
You can blame AI if you want. Yet, it’s the way of the world.
TOP TIP
Don’t assume that notifying your insurer about a potential problem means you have to make a claim. If you notice cracks, movement, leaks or other issues that could potentially become a claim, speak to your broker early. They can help you understand what needs to be reported, make sure the situation is properly documented and, importantly, help protect your insurance cover for the future.
WRAP UP
Property issues are rarely straightforward, particularly when there are questions about leaks, movement or possible subsidence. Reports can be inconclusive, insurers may take a different view and decisions made early on can have consequences when your policy comes up for renewal. Having someone on your side who understands the history, knows what has been agreed and can guide you through the process can make all the difference. These situations are never easy, but having the right support can help you navigate the uncertainty, protect your cover and avoid unnecessary complications along the way.
If you need a broker that won’t let you down give us a call.
