Subsidence & Landslip Insurance for your building

Is your building (residential or commercial) located in the place that makes it prone to subsidence or landslip? Is it on a significant slope, on susceptible ground or in a place where neighbouring properties have suffered this type of damage?

Most insurance policies on buildings provide very limited (if any) cover for subsidence or landslip unless it has been specifically requested by the building owner.

If you think that your building might conceivably suffer damages as a result of the movement of ground underneath it, below or above it on a slope – you should ask your broker to check what cover you have in place for this risk.

Some important factors about this insurance:

• The cover is triggered by a sudden and unforeseen event and is not aimed at buildings “settling” over a period of time.
• As with all insurance, there is no point in trying to buy it after the event and pre-existing damage is a standard exclusion.
• It will come at an additional premium charge.
• Insurers will require information around your building before granting cover.
  • Where it is situated and how it has been constructed.
  • If they feel that it is warranted, they may require a geotechnical report.
• In the event of a claim, the opinion of engineers will be sought to determine the proximate cause and whether or not the policy will respond.

It is obvious that a claim of this nature is almost always very expensive. This is one of those areas of insurance where you really shouldn’t be penny wise and pound foolish.