Home owners warned of subsidence risk by insurers
Insurers are already contacting their customers to warn them that the dry Spring could have disastrous consequences for their homes.
This week’s rainfall will not be enough to prevent a surge in claims for homes with shifting foundations, with insurers LV= claiming that there is an 85pc chance of a surge in subsidence claims this year due to record hours of sunshine and lack of rainfall in the South East. “We would now need four times the average monthly rainfall to avoid a large number of subsistence claims,” an LV= spokesman said.
The British Insurance Brokers’ Association (Biba) said that it has seen a fivefold increase in the number of calls about subsidence from home owners unable to get conventional insurance during the past few months. “We are getting the same number of calls a day as we used to receive in a week,” a spokesman said.
Meanwhile, insurers are already contacting their customers to warn them that the dry spring could have disastrous consequences for their homes.
Esure said that the company “may see a surge in subsidence claims later this year”. It has emailed its customers to highlight what they should look out for.
“There may be thousands of people entering a potential subsidence hot spot summer,” she said.
Mainstream insurers are already refusing to insure properties that have been underpinned and have shown signs of movement, so customers are having to use insurance specialists.
Julie Fisher at moneysupermarket.com, said she was unable to find any insurers that would cover properties with previous subsidence. “Nobody will quote,” she said.
Rob Hooker, from Bureau Insurance Services, which finds specialist underwriters for properties blighted by ground movement, said that he feared that some insurers may create a blacklist of postcodes where they will no longer cover any homes because of subsidence risk.
“We are the only country in the world which insures for subsidence, and some insurers probably wish that we didn’t,” he said. “There is a high incidence of subsidence in some postcodes, and it is perfectly feasible that some insurers would begin not to cover these places.”
Most of the homes prone to subsidence are in the South East, with many built on London clay, which tends to shift. Victorian homes, with shallow foundations, can be a particular problem.
Esure sent an email to all of its insurance customers warning that “thirsty trees” rooted in clay soil could cause problems after the dry spring. “When too much moisture is removed from clay soil it desiccates and shrinks. This can cause building foundations that are built on it to drop or subside,” the email said.
It goes on to warn customers not to ignore cracks in structural walls that are wide enough to fit the edge of a 50p piece inside, particularly around doors and window frames. If you spot new cracks appearing, the insurer suggests contacting a surveyor and to reduce the foliage on nearby trees to reduce the amount of moisture taken from the soil.
Trees are the cause of seven out of 10 cases of subsidence, and home owners should be careful if there are trees greater than 26ft (8m) tall within 33ft (10m) of their home. Poplar, oak and willow trees, which need large amounts of water, are among the worst offenders. The graphic above gives guidance for how tall different types of trees should be, and how far away they should be planted.
If you do need to have your property underpinned, be aware that most policies have a £1,000 excess if your home suffers subsidence. Some may have even more.
After the work has been done your premiums may rocket alarmingly, and most people elect to stay with their current insurer.
Mr Hooker said that the average extra paid by a homeowner with an underpinned property compared to one with no structural problems was just 20pc a year. “It’s not too scary if you go to a specialist,” he said. “We actually take a view rather than refusing to cover a property.”
However, he stressed that this was just an average and some people may end up paying far more, or the company may be unable to quote.
