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News: Subsidence warning after dry summer

After one of the hottest summers on record, the British Insurance Brokers’ Association has warned homeowners that the number of properties that suffer from subsidence and heave may dramatically increase this year.

The warning comes at the end of one of the driest summers ever, with many homeowners facing a personal and financial nightmare if their properties are hit by subsidence or heave.

Many homeowners may not have sufficient cover to cope with such an occurrence and will be left out of pocket as a result. BIBA is warning the public to check with their insurance providers now to ensure that they have adequate buildings insurance protection.

The concern is heightened because the dry summer has followed one of the driest winters on record – doubling the dangers of subsidence.

Graeme Trudgill , technical services manager at the British Insurance Brokers’ Association, said: “Our advice is very simple – check your policy immediately. Too many people will be left high and dry because of subsidence caused by the extraordinarily hot and dry summer. This is a warning to us all to arrange the proper cover before we also suffer.”

“We are predicting that the number of properties that suffer from subsidence and heave will dramatically increase this year following the dry hot summer and related droughts. It is important that consumers are made aware of this problem, and we are therefore advising people to ensure that they are adequately covered by their buildings insurance cover going forward. An insurance broker can help arrange the best policy with the correct sum insurance, low excess at competitive price.”

“Subsidence and heave can be a personal and financial nightmare for homeowners. It is simply not worth the risk and we urge everyone to speak to their broker to ensure they have enough insurance to cover such an eventuality."

Will your insurer cover you for repairing the damage caused to the property?

Yes, says BIBA, the good news is the UK is one of the only countries in the world that insures our private homes for the risk of subsidence, heave and landslip. Yopu should be covered providing you have been open with your Insurer about the time you first spotted the problem and told them as soon as possible.  

It is worth noting that it is a breach of most mortgage agreements not to have buildings insurance.

You will normally have to pay the first £1,000 excess of your policy (Be aware some policies have £2,500), most damage should be covered including alternative accommodation, consult your BIBA broker for detailed advice as all policies differ.

Some insurers may also insist upon an excess of up to 3% of the sum insured on buildings (usually applied where there is existing damage or previous subsidence claims history).

As with all insurance policies making claims usually increases the premium at renewal, you may lose some no claims bonus and find many Insurers do not want to quote for a previously affected property.

Your existing Insurer will normally continue to cover you, or you can contact BIBA for a specialist.

What should you do if you want to buy a house that has suffered from subsidence?

  • Make sure you have a full structural survey before you buy the property.
  • Find out when, why and how it was fixed.
  • Speak to your lender and Broker before you buy the property.
  • For previously underpinned properties you should speak to a specialist BIBA broker who can help you arrange cover.

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