Scorchio summer leads to 16-year subsidence payout peak
Insurers expect to pay £219m in subsidence claims in 2022, many of which were caused by last summer's record-breaking high temperatures, the highest since 2006.
Last summer’s heatwave led to 18,000 subsidence claims and insurers are expecting to pay out some £219 million in claims, figures released yesterday from the Association of British Insurers (ABI) reveal.
The heatwave – which peaked with the hottest UK temperature since records began of 40.3 degrees on 19 July – resulted in the equivalent of one new subsidence claim made every 15 minutes in the second half of the year.
SETTLED
While the final insurance bill has not been fully settled due to ongoing monitoring of some homes to assess the extent of any subsidence damage, ABI members expect to pay out £219 million in subsidence claims. This will be the highest annual subsidence payout in 16 years since 2006.
The average subsidence claim incurred was £9,600.
Of the 23,000 subsidence claims made during the year, the majority – 18,000 – were in the second half of the year following the summer heatwave.
Insurers understand that suffering subsidence is worrying and stressful.”
Laura Hughes, ABI’s Manager, General Insurance, says: “Thousands of homeowners felt the impact of last summer’s record-breaking heatwave long after temperatures returned to normal.
“Insurers understand that suffering subsidence is worrying and stressful.
“They have, and will continue to, support their customers during any monitoring period to ascertain the extent of the damage, and what repairs or work will be needed for a long-term solution.”
AGENTS
Longstanding advice from Propertymark and Warwickshire Trading Standards Service says that if a property had subsidence and even if this has been rectified, they would expect agents to disclose these facts to any potential buyer to enable them to make an informed decision.
Meanwhile, some mortgage companies will require a full survey before agreeing to lend, therefore a buyer may not make a transactional decision to view/offer on the property, had they known about the subsidence. It does not matter how long ago the subsidence occurred.
