top of page

Scorching Summer Prompts £219 Million Payout for 16-Year High in Subsidence Claims


Scorching Summer Prompts £219 Million Payout for 16-Year High in Subsidence Claims

Insurers are bracing for a substantial £219 million payout in subsidence claims, marking the highest annual figure in 16 years, according to data released by the Association of British Insurers (ABI), as reported by The Negotiator.


Last summer's intense heatwave, with the UK recording its highest-ever temperature of 40.3 degrees on July 19, resulted in a staggering 18,000 subsidence claims. This equates to one new claim every 15 minutes in the second half of the year.


While the final insurance bill is pending due to ongoing assessments of subsidence damage in some homes, the ABI anticipates a significant payout, with the average subsidence claim totalling £9,600.

Laura Hughes ( Image source: The Negotiator)

Laura Hughes, ABI’s (Association of British Insurers) Manager General Insurance, acknowledges the impact of last summer's heatwave, stating, “Thousands of homeowners felt the impact of last summer’s record-breaking heatwave long after temperatures returned to normal.”


Property experts stress the importance of transparency in property transactions, urging agents to disclose any history of subsidence, even if rectified, to potential buyers. Both Propertymark and Warwickshire Trading Standards Service recommend full disclosure for informed decision-making. Some mortgage companies may also require a comprehensive survey before approving a loan, emphasising the need for complete information about a property's subsidence history.

Insurers are gearing up for a substantial payout, underscoring the importance of vigilance and transparency for homeowners and buyers dealing with subsidence-related issues.






Comments


bottom of page