Subsidence claims set to rocket: is your home at risk?

Subsidence is currently one of the least common home insurance claims, but new data from the Association of British Insurers (ABI) suggests this could be changing.

Last year, the UK recorded the hottest summer on record at an eye-watering 40.3°C. This caused havoc on building foundations and a surge in subsidence incidents and claims. 

Newly published statistics from the Association of British Insurers (ABI) show that 18,000 subsidence claims were made in the second half of 2022, following the summer heatwave.

With claims averaging £9,600, the industry is anticipating it will have paid out £219m when all are settled. 

The ABI says it’s the highest spike in claims since 2006 and could lead to increases in home insurance premiums.

Here we explain what subsidence is, who is most at risk and how to protect your home.

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What is subsidence? 

Typically caused by hot, dry weather, subsidence is when the ground sinks beneath your home, causing expensive structural damage. 

When we surveyed home insurance claimants last November, subsidence represented a minority of causes - the reason for just 2% of claims made over the past two years. 

However, some 26% of those claims were still ongoing (across all claims, the proportion still in progress was 5%). 

This could reflect the recent surge and also how time-consuming subsidence claims are. One Which? member recently contacted us after his claim was stalled for six years.

• Find out more: Best and worst home insurance 

Will we see more subsidence surges?

Insurers we spoke to don’t anticipate a larger spike this year. 

William Quibell, head of supply chain and adjusting at Admiral, said ‘Ground conditions are normal for this time of year and the ground has recovered over the winter period. Only another hot, dry, long summer would see another rise in claims this year over and above expected numbers.’

However, the bigger picture is less benign. According to Sean Walkden, property claims manager at NFU Mutual, ‘Climate change is bringing warmer weather and this is expected to increase subsidence claims in the long term.’

It's hard to tell how this will impact insurance premiums in the long run, but it is clear that, each summer, subsidence will be an issue for an increasing number of households. 

Top 10 locations most at risk 

Based on 2022 data from LV, these areas are most at risk from subsidence:

London is seen as one of the areas most at risk due to its soil type. It is mainly made from clay, which is the most common cause of subsidence. 

• Find out more: Making a home insurance claim  

5 ways to minimise your risk of subsidence

There are steps you can take to protect your home and spot subsidence early, to reduce the damage and cost:

1. Don’t plant trees or large shrubs too close – trees absorb moisture from the soil, so are a common cause of subsidence.
2. Prune trees and large shrubs to prevent soil from drying out. Seek professional advice from a tree specialist if you need to.
3. Avoid artificial grass – as this reduces the amount of water getting to the soil.
4. Watch out for leaky drains – leaks can soften soil or wash it away, causing the earth to sink downwards.
5. Check for cracks in the brickwork – they usually aren’t cause for worry, but check for diagonal cracks in the same location inside and outside the home.

Will you pay more for home insurance?

Most insurance policies will cover subsidence, but only if your building has never suffered from subsidence in the past. 

Your buildings insurance should cover repairs to damage caused by subsidence, alternative accommodation and replacement costs. 

Data from Confused.com revealed that the average price of premium that covers subsidence is £344 a year, but this could go up if subsidence claims increase. 

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