How to insure a house with existing problems

Some houses come with baggage. Past damage, structural quirks, neighbour disputes, unfinished repairs. Insurers care about all of it, and they tend to ask better questions than buyers do.

This is where things can feel awkward. Not impossible, just more precise.

What insurers mean by a house with issues

The phrase covers more ground than most people expect.

It does not only mean major structural problems. Insurers usually include anything that suggests higher-than-normal claim risk or uncertainty about future damage.

• Previous subsidence, underpinning or movement
• Historic flood, fire or storm damage
• Water ingress, damp or mould problems
• Unresolved structural repairs
• Properties declined by insurers in the past

A house does not need to be unsafe to fall into this category.

Why past problems still matter

Insurers look at patterns, not just the present condition.

If something has happened once, they assume it could happen again unless there is clear evidence otherwise. That evidence matters more than reassurance.

Survey reports, engineer statements and completion certificates usually carry more weight than verbal explanations.

Disclosure is not optional

This is where people get themselves into trouble.

If you know about a previous issue, it must be disclosed, even if it was resolved years ago. Insurers often check claims history databases and survey notes.

Undisclosed issues tend to surface at claim stage, which is the worst possible time.

Subsidence and movement concerns

Movement is one of the most closely examined issues.

Historic subsidence does not automatically rule out cover. What matters is whether the cause was identified, addressed and monitored.

Insurers usually want to see evidence that movement has stabilised, not just stopped being mentioned.

Flood history and water damage

Water changes everything.

A past flood or repeated water ingress often leads to higher excesses, restricted cover or exclusions for future flooding.

Mitigation measures, such as flood defences or drainage improvements, can help but they need to be documented.

Houses refused by insurers before

Previous refusal is a red flag, not a dead end.

Insurers will usually ask why cover was declined and whether circumstances have changed. Vague answers slow things down.

Knowing the reason matters more than the refusal itself.

Ongoing repairs and unfinished work

Partially repaired houses sit in an uncomfortable middle ground.

Insurers often want work completed before offering standard terms. In some cases, cover is offered with exclusions until repairs are signed off.

Temporary fixes rarely satisfy underwriting questions.

How policy terms often change

Cover is usually adjusted rather than refused outright.

• Higher excesses for specific risks
• Exclusions linked to known issues
• Limited cover for repeat damage
• Requirements for ongoing monitoring

These changes are common and not necessarily a sign of poor insurance.

What helps when arranging cover

Preparation makes a difference.

Clear documentation, realistic rebuild figures and honest disclosure speed things up. Insurers are generally more flexible when they understand the full picture.

Houses with issues can be insured, but they are rarely insured casually. The detail matters, and skipping it usually comes back later, when it matters more.

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