Potential Increase in Subsidence Insurance Claims on the Horizon?
In the UK, 2025 is forecasted to be a year of increased subsidence claims, according to experts in the field. The anticipated surge is primarily driven by prolonged heat, drought, and extreme climate variability that cause soil movement, especially in clay-rich areas.
Subsidence can be costly, often running into tens of thousands of pounds and leaving a permanent stigma on the affected property. This year, experts predict a sharp increase in insurance claims due to these factors.
Climate extremes in 2024-2025, such as record rainfall at the end of 2024 followed by a very dry and hot start to 2025—the driest in England since 1976—have caused significant fluctuations in soil moisture, which stresses ground stability. Prolonged drought causes clay soils to shrink and crack, destabilizing foundations and triggering subsidence claims.
Regions like Cumbria, Lancashire, Yorkshire, the Midlands, and southern England are experiencing low soil moisture and drought conditions, increasing local subsidence risks. Experts link the increasing frequency and intensity of climatic extremes to climate change, resulting in more frequent and severe subsidence events.
Chris Cowen, the client relationship manager at Auger, a specialist for the insurance industry in drainage and water mains, has also expressed his concerns. He predicts that subsidence claims will run into the next year, after the hot summer we've experienced.
To help homeowners understand their property's risk level, Geobear, a provider of subsidence solutions, has launched a new subsidence risk postcode calculator. The tool considers verified case data from Geobear's 25,000+ subsidence reports, the local soil type and its shrink-swell potential, the density of nearby tree coverage, and the number of past cases per 1,000 homes in the area.
QuestGates, a leading specialist loss adjuster, is establishing a subsidence claims development academy. Based within QuestGates' Northampton office and part of a new surveying services hub, the academy is expected to provide training and development for professionals working in subsidence claims.
In 2022, over 23,000 valid subsidence claims were made, costing insurers an estimated £219 million. With early signs suggesting a repeat of the 2022 surge year, the Association of British Insurers has expressed concern about subsidence risks in 2025.
Britain, built upon various rivers, streams, brooks, springs, bogs, wells, with some crumbly rock strata and clay, is particularly vulnerable to subsidence. As temperatures rise and dry spells continue, it's crucial for homeowners to be aware of their property's risk level and take necessary precautions.
[1] Climate Change and Subsidence: A Growing Concern for the UK
[2] UK Regions at Increased Risk of Subsidence Due to Drought Conditions
[3] Subsidence Claims Surge in the UK: What Homeowners Need to Know
[4] The Impact of Climate Change on Subsidence and the UK
- The anticipated surge in subsidence claims in the UK during 2025 is primarily due to climate change and its impact on soil conditions, as pointed out by environmental science experts.
- With areas like Cumbria, Lancashire, Yorkshire, the Midlands, and southern England currently experiencing low soil moisture and drought conditions, such areas are at higher risk for subsidence, according to reports from the home-and-garden and science sectors.
- In the realm of lifestyle and finance, homeowners in the UK are advised to be aware of the increased subsidence risks and take necessary precautions, as these situations can lead to expensive claims and property devaluation.
