After the balmy summer, subsidence damage brings a heavy price

IT is payback time for the long hot summer – with spiralling claims for subsidence damage.

But it is not just the worry and often drawn-out hassle of making a claim on buildings cover that homeowners have to contend with. The fact a subsidence claim has been met means policyholders are often tied to their current insurer – and are at the mercy of the premium hikes they inevitably apply.

Figures from the Association of British Insurers show a fourfold leap in subsidence claims to 10,000 for the three months to September, with most from policyholders with homes built on the clay soils of the South East.

The problem can be spotted by the sudden appearance of cracks – usually diagonal – around windows and doors. They are thicker than a 10p coin.

The average cost of a claim is £6,400 and though underpinning and other repairs mean properties should pose a better risk in future, insurers often consider them blighted. Anyone with a home affected by subsidence searching for buildings insurance at renewal will struggle to find a quote.

An industry agreement means the incumbent insurer should agree to continue cover. But it may use this as a way to recoup the cost of the claim.

It may be possible to switch via a specialist broker, but this will require a special property survey. The British Insurance Brokers’ Association provides details of firms that will help with subsidence affected properties.

Use its ‘find a broker’ service on 0370 950 1790, or visit www.biba.org.uk.