Resolved Question

Would an insurer normally increase the premium after they had paid out on a subsidence Claim?

I am thinking of buying a house on which an insurer has previously paid out for a movement claim.The insurer has since monitored the house and there has been no further signs of movement.If there was to be further movement is it likely that the insurer would refuse further renewals or increase the premium by an unpallitable amount?

Best Answer - Chosen by Voters

If there has been subsidence it is quite possible you won't even get a mortgage.

But if you do the insurance premium will be higher than it would otherwise have been. All premiums are based on the risk involved, and there is clearly a higher risk in this property than in others.

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Other Answers (1)

• Yep always. Insurance companies exist only to make a profit for their shareholders. More risk less profit. Hence the premiums rise.

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