Average Subsidence Insurance Claims Surge to Record £20,000 Amid Heatwaves

Homeowners are facing record-high insurance payouts for subsidence, with the average claim reaching £20,000 between April and June. This figure represents a £2,000 increase from the same period last year, according to the Association of British Insurers (ABI).

The surge in claims is attributed to prolonged periods of hot, dry weather, which can cause the ground beneath properties, particularly those built on clay soil, to shrink and move. This ground movement leads to subsidence, a phenomenon where the soil supporting a house begins to sink.

During the second quarter of the year, which coincided with the warmest spring on record for England and Wales, insurers paid out a total of £72 million for domestic subsidence claims. This is a stark contrast to winter weather damage, such as flooding and burst pipes, where the average claim for homes and possessions stood at £8,548 during the same period, an increase of 12% year-on-year.

"The growing cost of subsidence and weather-related damage is a reminder of why improving the resilience of our homes matters," said Chris Bose, director of general insurance policy at the ABI. He emphasized the need for a coordinated effort from homeowners, industry, and government to reduce future losses, while noting that insurers remain committed to providing financial support to affected customers.

Subsidence occurs when the ground beneath a property sinks, causing its foundations to shift. While often linked to soil losing moisture during dry spells, it can also be exacerbated by factors like nearby trees and shrubs drawing water from the ground. In some cases, excess moisture from leaking pipes or drains can also lead to soil softening or washing away, contributing to the problem.

Simple preventative measures can make a difference. For new constructions, building with deep foundations can mitigate the risk. For older properties, maintaining nearby trees and drains, and promptly fixing any leaks, are recommended steps to prevent subsidence from developing.

Homeowners are advised to be vigilant for warning signs, which can include sudden cracks in walls wider than 3mm (about the thickness of a £1 coin), particularly if they are diagonal and wider at the top. Cracks appearing both inside and outside a property, doors and windows becoming difficult to open or close, sloping or sinking floors, and wallpaper wrinkling or tearing without an obvious cause can also indicate subsidence. Cracks where an extension joins the main house may also be a sign.

If subsidence is suspected, homeowners should contact their insurer, who will typically arrange for a structural engineer to conduct an inspection. The assessment process can sometimes involve monitoring the property for up to 12 months to confirm if the ground is sinking. In confirmed cases, remedies can range from removing problematic trees and injecting resin into the ground to, in severe situations, underpinning the building's foundations. Repairs to cracks and replacement of windows and doors often follow.

Regarding home insurance premiums, the average combined policy cost £383 between April and June, a decrease of £9 from the previous year. Buildings-only premiums averaged £309, down £16 year-on-year, while contents-only policies averaged £118, down £11. However, most subsidence claims have an excess of around £1,000, and damage to surrounding structures like garden walls or driveways is generally not covered unless it occurs simultaneously with damage to the main home. Insurance typically covers the cost of alternative accommodation if a property becomes uninhabitable due to subsidence damage.