Subsidence, And Home Insurance

Almost 4 million homes in the UK are at risk from subsidence, but many of the properties are uninsurable because of the experiences of the next door neighbour. Subsidence has recently been overshadowed by the problems caused by flooding even though it affects approximately 3.7 million homes, 15% of the population.

Subsidence is caused by the ground sinking downwards beneath the house. The movement of the earth is caused by temperature fluctuations which cause the clay 'subsoils' to dry out during long periods of dry weather. If you have a large tree or bushes next to your home this can heighten the problem, as can leaking pipes.

If you want to check for subsidence consider looking for tell tale diagonal cracks in the walls that are wider at the top of the crack and narrower at the base, particularly around windows, doors and other 'weak spots'. If in doubt contact your home insurance company or building professionals for expert advice.

Areas most at risk from the problems of subsidence include London, the South East, and the Midlands, where good summer weather and a very wet winter significantly increased the number of claims for 2003.

Unfortunately consumers are facing the raw end of the deal. When a company provides a quote for home insurance it only takes into account the first, outgoing part of a postcode rather than the full postcode. This enables an insurer to group the risk into a larger area and as such you may find your home classed as being in an area of subsidence risk if houses within the same postcode have made claims. The result will be a higher home insurance premium even if you do not have a problem with subsidence.

Some insurers are beginning to improve their post code selection criteria and use the full postcode rather than the outgoing section. The result should be improved targeting of those home owners who do have a problem, and also those who do not!

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