A Complete Guide to Subsidence Insurance - Protect Your Property

It’s the one word that no homeowner wants to hear – subsidence. What you thought was a solid, forever home that would outlast you and even your children starts showing signs of stress, with cracking in the walls, uneven floors, and that slow, sinking feeling. It doesn’t necessarily mean the end of your beautiful home, as there are ways of stabilising buildings suffering from subsidence, but you can be absolutely sure that it’s going to hit your pocket hard.

Can you pre-empt the possibility and get home subsidence insurance? And if the property you're considering buying has a slightly lopsided history, will it be easy (and affordable) to get building insurance with subsidence cover? In this article, we’ll take an in-depth look at what causes subsidence, how it can be reversed or stabilised, and whether you should steer clear of any property with a history of subsidence. We'll also examine the insurance options available for buildings with a history of subsidence or located in 'at-risk' areas, and attempt to address some of the most frequently asked questions on this complex subject.

What is subsidence?

Subsidence occurs when the ground beneath a building begins to sink or shift. It has the potential to pull a building's foundations with it, destabilising the building and even potentially causing it to collapse suddenly. Subsidence is a serious issue, and while it can take several years to affect the property, the damage it can cause can be catastrophic.

Subsidence is generally categorised as ‘Historic movement’, which means the property has suffered from subsidence in the past but has been repaired, and ‘Active movement’, in which subsidence is an ongoing problem.

What are the signs of subsidence?

The first sign you may notice is the appearance of diagonal cracks both inside and outside the building. You’ll often find them around structural weak points, such as radiating from window frames and doorways, or stretching from the ground upwards on the outside.

Before you panic, cracks do not always mean your property is subsiding. As buildings age, it is normal for them to settle and shift, especially if you live in an older property or in particular types of buildings, such as cottages. However, it's essential to identify the cause earlier rather than later. If caught in time, subsidence can be stabilised.

Other indicators to look out for include uneven surfaces, both upstairs and downstairs, as well as cracking on paths and patios.

What causes subsidence?

Subsidence can have various causes. If there is a prolonged period of very dry weather, the ground can literally 'shrink' away from the foundations of a property, causing it to shift and those tell-tale cracks to appear. Houses built on land that was once extensively mined are particularly vulnerable to subsidence, as are those built on sandy or clay soil. Other man-made issues can range from long-term leaks in drains and water pipes to installing foundations that are insufficiently deep or not robust enough to support the building's weight.

What's the difference between subsidence and settlement?

While subsidence can be defined as the general sinking or eventual collapse of the ground surface, which affects anything resting on it, settlement is a more gradual process, where the ground beneath a building is slowly compressed over time. This compression is caused by the weight of the structure pressing down on the soil. While it may lead to cracking and uneven surfaces, it is generally manageable and repairable if detected early. Settlement is particularly common in buildings built on clay soil, which can be particularly volatile depending on surrounding influences such as the local water table height.

A step-by-step guide on how to prevent subsidence

• Know your property – Just because a property is older does not necessarily mean it is more prone to subsidence. However, older properties tend to have shallower foundations, which can make them more susceptible to subsidence. Before buying a property, have a comprehensive survey done to ensure there is no risk of subsidence or other active movement.
• Check for trees – Trees can be a serious risk to property stability, particularly during prolonged droughts or dry spells. Large trees have extensive root systems that can absorb the moisture from the soil, causing it to dry and eventually sink. While we are not advocating that you immediately cut down any trees close to your property, bear in mind that they could cause an issue, particularly during the summer months.
• What kind of soil are you on? – Clay soil is notorious for subsidence, and while you can’t actively do anything to alter the composition of your soil, you can be aware of the risk and keep an eye out for indications of subsidence, such as cracking.
• Check your drains – Leaking drains and water pipes can soften the soil underneath your property, which in turn can lead to subsidence. If you suspect a leak, have it repaired as soon as possible.
• Monitor and maintain - Cracks wider than 3mm, sticking doors and windows, or uneven floors may indicate subsidence. If you notice something new or a crack that is starting to worsen, have the property surveyed as soon as possible.

What next?

Subsidence, if detected early enough, can often be addressed using reinforcing techniques such as underpinning. However, before you contact a builder, the first step is to consult with your building insurance provider. Subsidence is a clause in most buildings insurance policies, but it will need to be arranged by the insurance company to enable you to claim for any costs under your policy. They'll arrange for a structural engineer specialising in property subsidence to do a complete assessment of your home, and will base their response on the engineer's report.

If the active movement is short-term, possibly caused by a particularly dry spell of weather or the effects of a nearby tree root system, the engineer may recommend monitoring the subsidence for a while before taking any further action. Likewise, if a leaking pipe is found to be the cause, the insurance company may contact the utilities service provider (if it's a water main or sewage pipe) to initiate a repair.

If, however, the situation is more serious, your property may require more extensive repairs, including underpinning. The Royal Institution of Chartered Surveyors estimate that this is only necessary in around 10% of cases, and is usually a 'last resort' for severe cases. In most instances, repairs can be carried out for much less, and with new methods of stabilising subsidence issues, such as resin repairs, they can be resolved very quickly.

What is subsidence insurance, and how can it help?

The majority of home building insurance includes protection from subsidence, as long as there is no indication of ‘historic movement’ or a high risk of subsidence (such as the property being located in a former mining area). While the excess levels for subsidence are often higher than other elements of your insurance (around £1,000 per claim on average), the cost of not having that cover could be considerably more, especially if the building needs underpinning to stabilise it.

Subsidence insurance generally provides cover for the main structure of the property, but usually does not include damage to paths, drives, patios or garden walls.

The significant advantage of home subsidence insurance is that it can save you thousands of pounds in repair bills if the structural engineer's report is bad news. Underpinning can cost upwards of £50,000 and can have a major impact on your property resale value, regardless of how many years have passed since the work was carried out. Subsidence is a serious issue, and having the right level of building insurance with subsidence cover gives you peace of mind that your finances won’t take a beating if those cracks start appearing.

Who needs subsidence insurance?

Unless you live on top of a granite rock, everyone who owns a home could be at risk of subsidence, even if your home is a new build. If you live in an area that was previously mined, subsidence is a real issue, and subsidence insurance is essential. Other factors, such as the soil type (clay or sand), the impact of heavy construction nearby (as in a new-build estate), and unstable ground in a flood-prone area, are all reasons to ensure your home insurance policy includes a robust subsidence clause. If you're unsure, consult with your broker.

What's not covered by subsidence insurance?

As previously mentioned, structures such as garden walls, patios, swimming pools and paths are generally not covered by your home subsidence insurance policy, unless the main structure is directly affected. Preventative work, such as repairs to water pipes and tree removal, may be covered if it’s part of the plan to stabilise a building, but not if it’s a pre-emptive measure against any future subsidence.

How much does subsidence insurance cost?

Home subsidence insurance will usually be a part of your building insurance, so unless you need to take out specific buildings insurance with subsidence history cover, there shouldn't be any additional cost. At Park Insurance, we design our buildings insurance to your exact needs, including home subsidence insurance where necessary. What we won’t do is try to ‘upsell’ you any additional insurance you don’t need. So your insurance costs should always be within budget. What you need to ask is how much not having subsidence cover could cost you if the worst happens.

Our top 3 tips for finding the best subsidence insurance policy

• Most standard building insurance policies include subsidence cover if your property has no history of subsidence. If your home has been affected by ‘historic movement’, you’ll need a specialist policy or insurer that accepts higher-risk properties. The team at Park Insurance can help you find the right policy, whether you’re a commercial or domestic property owner.
• Check the small print. Look for standard exclusions, such as damage caused by poor construction or lack of maintenance. Ensure the policy covers structural repairs, alternative accommodation if your home becomes uninhabitable, and damage to surrounding structures, such as patios or garages.
• If your property has been underpinned, look for a building insurance provider that doesn’t penalise you for historic repairs, or seek out tailored policies for underpinned properties.

FAQs

Does building insurance cover subsidence?

Generally, yes, home subsidence insurance is included on most building insurance policies. However, it's essential to review the fine print to ensure. If you have any doubts or concerns, talk to your Park Insurance broker.

How long do you have to declare subsidence?

There's no time limit on declaring subsidence, which means if you sell your house, even if the repairs were carried out decades ago, you will still have to declare it. Failing to do so could result in legal action later on.

How do I reduce the risk of subsidence?

Ensuring drains and pipes are maintained and that tree roots don’t affect the property are the best ways to keep the risk of subsidence at bay. If you notice any signs of subsidence, take action promptly to determine if it's simply ordinary settlement or something more concerning.

How do I make a subsidence claim?

If you suspect your property may be suffering from subsidence, contact your insurance provider straight away. They'll initiate a survey with a structural engineer. Once the report is submitted, your insurance company will work with you to ascertain the following steps and how to make a claim. For this reason, it's best to let the insurance provider handle the survey process rather than initiating it yourself.

You’re on solid ground with Park Insurance

For over 30 years, Park Insurance has been providing top-quality, affordable, and tailored insurance packages for homeowners and businesses. Our position as preferred brokers to some of the UK's largest insurance providers means we can find the perfect policy at a price that suits your needs and budget. We won't try to upsell you insurance you don't need, and we're here to provide you with clear, no-nonsense advice on subsidence insurance for both commercial and domestic customers. Contact us today for more information, or use our online Get A Quote service for an instant, no-obligation quote.