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A record number of homeowners are expected to file soil damage claims with insurers this year.
Experts say the hot, dry summer means thousands of homes are likely to be affected by problems caused by subsiding soil.
This year is likely to surpass the record total set in 2018 when 23,000 claims were made for a total of £145 million.
This year’s total number of claims is likely to surpass the record set in 2018 when 23,000 claims were made for a £145 million bill
Insurance giant LV= saw a 205 percent increase in claims between June and July, while other firms saw their cases rise fivefold.
Land subsidence frightens many homeowners. Most cases are due to the drying of the soil during prolonged periods without rain.
Subsidence can reduce the value of a home by as much as 20 percent. Lenders will often refuse to offer a mortgage until it is resolved.
Most home insurance policies will cover subsidence, but companies will ask new customers if it has been a problem in the past. If there have been problems, some insurers will deny coverage.
Other companies may charge higher premiums to cover these homes or command higher deductibles of around £1,000 for homes with a history of subsidence.
Subsidence occurs when the ground under a building sinks and the foundation of the building is pulled down with it.
Telltale signs include diagonal cracks around window and door frames and slanted floors. Homes built on clay soil are particularly at risk because the clay expands in wet weather and contracts when conditions dry out again.
These soils are common in London and the South East, where homes are more commonly affected.
England this year recorded its driest July since 1935 and insurers are responding to a flurry of questions.
Last month, claims adjuster Sedgwick recorded a 480 percent year-on-year rise in UK subsidence claims. Loss adjusters are the professionals charged with assessing the cost of damage.
Causes: Subsidence occurs when the ground under a building sinks and the foundations of the building are pulled down with it
James Preston, the company’s technical director, says: ‘Due to the extremely dry weather we’ve had this year, there’s very little moisture in the soil.’
Insurance claims negotiator Jeremy Rollinson of Salmon Assessors says claims have doubled since the summer. “Since the prolonged dry spell and extreme heat we’ve had, claims have skyrocketed,” he says.
Richard Hazelgrove is disturbed by the cracks that have appeared in his detached home in Fareham, Hampshire, since the summer.
“There are cracks everywhere you look, it’s really worrying.
“They’re around every window in the house and most of the doors don’t close properly, including the one to our terrace,” says the 64-year-old.
The cracks had appeared on both the inside and outside of the house over the summer, says Richard, but they continued to widen after recent rains and are now 5mm to 6mm wide.
Richard contacted his insurance company as he believes his house is built on clay soil and needs to be supported, but has not yet had a response.
Cracks can appear quickly, but repair work cannot begin until the cause of the subsidence has been determined. That can take at least six months to investigate and make a full diagnosis, Rollinson warns.
Heat wave: people seek cooling in the sea in Brighton in July. Experts say the hot, dry summer means thousands of homes are likely to be affected by problems caused by subsiding soil
‘You have to use lasers to monitor in which direction the building sinks over time. Only then can it be stabilized.
“After that, we recommend waiting another five to six months to make sure it’s done right before doing the repair work in the home.”
Tree roots are a common cause, as they tend to pull moisture from the soil beneath a house.
Leaks from drains or water pipes are another – they will soften or wash away the soil.
Victorian and Edwardian properties are also more at risk of subsidence because their foundations are shallower than more modern buildings.
According to Sedgwick’s Mr Preston, about 35 per cent of subsidence claims made at this time of year will be rejected.
One of the most common excuses insurers use to deny a claim is that something else caused the damage, such as wear and tear or poor construction.
Also, litigation can arise if subsidence is found shortly after a homeowner switches to a new home insurance policy.
Surge: Insurance giant LV= saw claims rise by 205% between June and July, while other companies report cases quintupled
Trade body the Association of British Insurers (ABI) has an agreement to resolve this. For example, if subsidence is found less than eight weeks after someone changes provider, it is the previous firm that handles the claim.
Both insurers share the costs if a claim is made to a new policy within eight weeks to a year. But some cases drag on for years due to disputes between firms.
Roger Flaxman, of insurance claims attorney Flaxman Partners, says: ‘These cases can be similar to flood claims in that they can be complex, take a long time to resolve and the most extreme claims can cost hundreds of thousands of pounds.
“I had a case where a property had to be demolished 14 years after a claim was filed because insurers spent too long discussing what to do with the property.”
Kate Pomfret, a consultancy manager, has been in litigation with Direct Line over a sagging claim for the past five years.
The insurer now agrees that some rooms in its four-bed semi-detached house in Birkenhead, Merseyside, are suffering from subsidence, but says others are not.
At one point, a claims adjuster appointed by Direct Line dismissed the cracks in her living room, claiming they were caused by “vigorous activity” in the bedroom above.
Kate, 46, says: ‘It’s been an incredibly stressful few years and I just want this whole thing sorted out.’
After contacting Direct Line, Money Mail arranged for the claims adjuster’s technical director to come to Kate’s house.
An ABI spokesperson says: ‘If a customer suspects that their home has been affected by subsidence, it is critical that they contact their insurer as soon as possible.’
j.beard@dailymail.co.uk
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