The latest survey from the Association of British Insurers (ABI) has exposed that over 10,000 households made claims that are worth a total sum of £64 million. This is used to deal with the impact of subsidence within just three months of this year. The statistics highlight that the figures for July, August, and September are the highest level of subsidence claims since the record-breaking heatwaves of 2006 and 2003. In 2018, during the hot weather, some of the UK regions experienced the driest months on record, especially in the South East which is also popular for building on subsidence-prone clay soil.
The number of claims surged from 2,500 to 10,000 from the previous quarter. Therefore, it is rising in value from £14 million to £64 million. This is an increase of 350% which is the highest quarter-on-quarter jump since more than 25 years ago when the records began. On the other hand, subsidence mainly occurs when the ground beneath a building loses it moisture and shrinks. This can be caused by a variety of reasons including prolonged dry spells which can cause the soil to lose water and trees and shrubs which can absorb exponential volumes of water from the soil.
Subsidence is regularly covered by buildings insurance. As each claim is unique, it depends on the circumstance, building, and the severity involved so there is no normal approach to repairs. However, there are some extreme cases a home might have to monitor for a period of time and if the house is uninhabitable during the process then the insurer may cover the rest of substitute accommodation for the homeowners until they are able to move back in.
About Stuart Mosley
Stuart Mosley (CeFA, CeMap, CLTM) founded SJ Financial Solutions in June 2005 having spent 12 years with big corporates such as Halifax and Santander. He felt the personal touch and straight speaking was missing from financial and mortgage advice services and set up SJ Financial Solutions to change this.
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