The recent warm and dry weather in England and Wales has led to a significant rise in insurance claims related to subsidence, driving average payouts to a record £20,000. Between April and June of this year, insurers paid out £72 million for domestic subsidence claims, with the average payment increasing by £2,000 compared to the same period last year—before accounting for the impact of July’s ongoing heatwave.

Subsidence occurs when clay soil beneath a property dries out, shrinks, and contracts, causing damage to the foundations. The presence of trees and large shrubs near buildings can exacerbate this effect by drawing additional moisture from the ground. Experts advise homeowners to monitor their properties for early signs, such as sudden cracks wider than 3mm—approximately the thickness of a £1 coin—particularly if they are diagonal or wider at the top. Other indicators include doors and windows that become difficult to open or close, and wallpaper that wrinkles, ripples, or tears without an apparent cause.

Those concerned about potential subsidence damage are urged to seek professional assessments promptly and notify their insurance providers early to mitigate further repair costs. Chris Bose, director of general insurance policy at the Association of British Insurers (ABI), noted that newer homes typically have deeper foundations offering some protection against subsidence, while older properties benefit from regular maintenance of nearby trees, drains, and prompt fixing of leaking pipes.

In addition to subsidence, claims related to flooding, storms, and burst pipes averaged £8,548 during the same quarter, marking a 12% increase compared to the previous year. Theft claims also reached a record average payout of £5,100. Despite these rising costs, the average combined home insurance premium over April to June stood at £383, reflecting a modest 2% decrease amid growing claim settlements.

The trend highlights the financial pressures homeowners may face as changing climate patterns contribute to more frequent and severe damage to residential properties, underscoring the importance of early detection and maintenance to minimize risks.