OSCM disclosed

OSCM lost subsidence cover for their land after they were obliged to tell their insurer about the first small hole on the Jenkin’s land. They have not managed to secure subsidence cover since. 

At the 2014 AGM Steven Longworth said that we had “an obligation to notify insurers”.  

That seems correct.  Would an insurer want to know that chalk mines thought to extend under the houses had collapsed twice ?  Would your average person know, even without an expert report, that an insurer would want this information ?   

Even though the hole was not on their land The Trustees felt obliged to disclose. Why would it be different for home owners – most of whom were at this AGM. 

DUTY to disclose?

Ian Latimer, a Trustee, advised at the  2014 AGM that before April 2013 policyholders had a duty to inform insurers of any material fact that may influence an insurer’s decision to insure or what premium to charge. This was felt to be unfair as consumers cannot know what facts an insurer would regard as material. The law changed in April 2013 so that since then a policyholder does not have to volunteer information when taking out or renewing a policy. It is sufficient that they answer questions posed by the insurer honestly and with care.

This is perhaps not the best description of reality and is especially confusing when the Trustees felt OSCM was OBLIGED to disclose a collapse on adjacent land. Could anyone reasonably think their premium would not be affected ? 

does anyone tell?

Despite the Trustees being OBLIGED to tell their insurer it seems that there may be property owners that take the view that house insurers are only interested in subsidence AT THEIR property – not locally and in the area – and they don’t tell insurers (or buyers) about the collapses and or expert report. How they can think this is unknown.

This is despite, Philip Carr stating at the 2014 AGM that he was concerned that the incident may have implications for individual resident’s property insurance, and in reply to another Resident asking IF they needed to disclose the collapse (and remember this was just the small hole) – Mr Carr thought “if same postcode, we would” (…. need to disclose). 

 

mortgages

Can you get a Mortgage without Home Insurance ?

disjointed system 

Mortgage lenders generally will not lend against a property that cannot get home insurance. 

Lenders do not however check that policyholders have made all the proper disclosures when securing home insurance. 

seek guidance