UK Insurers See Surge in Subsidence Claims After Record Hot Summers
UKPulse Property Desk
Major UK insurers, including Aviva, Hastings Direct, and Axa, have reported significant increases in subsidence claims following two consecutive record hot summers, with average claim values reaching £20,000.
- Aviva, Hastings Direct, and Axa confirmed rises in subsidence claims.
- The average subsidence claim reached £20,000 between April and June 2024.
- Total payouts for domestic subsidence claims hit £72m in the second quarter of 2024.
Major UK insurers have reported a significant increase in subsidence claims, following two consecutive record hot summers. Aviva, Hastings Direct, and Axa have all confirmed rises in claims.
Hastings Direct saw record subsidence claims in August, a 140% increase compared with the previous year. Axa described 2024 as a 'surge year' for subsidence.
The average subsidence claim in the UK reached £20,000 between April and June 2024, which is over £2,000 higher than the same period in 2023. Total payouts for domestic subsidence claims reached £72m in that quarter, up from £60m a year earlier.
The British Geological Survey estimates that up to 11% of UK homes, more than 4.2 million properties, could be at risk of subsidence by 2070 due to climate change. Drier summers cause soil to shrink, potentially undermining foundations, while subsequent wetter winters can cause the ground to expand, leading to further structural damage.
Why this matters: The increase in climate-related claims highlights growing risks for property owners and the insurance sector, potentially affecting property valuations and insurance premiums.
What this means for you: If you are a homeowner, particularly of an older property or one built on clay-rich soil in vulnerable areas like London, Essex, Kent, or around Oxford, you may face increased subsidence risk. Monitoring drains, pipes, gutters, and managing trees can help reduce this risk.