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You can find the current article at its original source at https://www.theguardian.com/business/2018/aug/17/cracking-summer-uk-insurers-expect-rise-subsidence-claims-heatwave
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| Version 1 | Version 2 |
|---|---|
| Cracking summer: UK insurers expect rise in subsidence claims | Cracking summer: UK insurers expect rise in subsidence claims |
| (about 2 months later) | |
| Insurers are bracing themselves for a spike in subsidence claims after this summer’s heatwave led to cracks appearing in walls across south-east England. | Insurers are bracing themselves for a spike in subsidence claims after this summer’s heatwave led to cracks appearing in walls across south-east England. |
| Several big-name insurers have reported that subsidence incidents are up 20% on this time last year. The fear is that that those returning from holidays will see fresh damage and in September there will be an influx of substantial claims. | Several big-name insurers have reported that subsidence incidents are up 20% on this time last year. The fear is that that those returning from holidays will see fresh damage and in September there will be an influx of substantial claims. |
| UK heatwave and World Cup boost retail sales | UK heatwave and World Cup boost retail sales |
| Homes built on clay are particularly susceptible to subsidence during long, dry summers because trees and shrubs suck all the available moisture from the soil, causing buildings to shift on their foundations. | Homes built on clay are particularly susceptible to subsidence during long, dry summers because trees and shrubs suck all the available moisture from the soil, causing buildings to shift on their foundations. |
| Virtually no rain fell over the south-east in June, the lowest amount recorded since 1925, triggering a spate of cracks. | Virtually no rain fell over the south-east in June, the lowest amount recorded since 1925, triggering a spate of cracks. |
| Heather Smith, the managing director of LV=’s general insurance business, said: “Homes across the UK have certainly been suffering as a result of the heatwave and in July alone reports of subsidence were up by 20% compared to the same time last year. | Heather Smith, the managing director of LV=’s general insurance business, said: “Homes across the UK have certainly been suffering as a result of the heatwave and in July alone reports of subsidence were up by 20% compared to the same time last year. |
| “However, in the last few days, parts of the country have received some much-needed rain, which has started to normalise the soil surrounding our homes and we’ve already started to receive reports of subsidence claims reducing in some parts of the country.” | “However, in the last few days, parts of the country have received some much-needed rain, which has started to normalise the soil surrounding our homes and we’ve already started to receive reports of subsidence claims reducing in some parts of the country.” |
| Insurers have identified the 226 postcodes that are most susceptible to subsidence claims, mostly where homes are built on clay. They all lie to the south-east of a line drawn across from the Humber down to the Severn. Subsidence has been a particular problem in London – especially south of the Thames. | Insurers have identified the 226 postcodes that are most susceptible to subsidence claims, mostly where homes are built on clay. They all lie to the south-east of a line drawn across from the Humber down to the Severn. Subsidence has been a particular problem in London – especially south of the Thames. |
| The most obvious sign that a householder has a problem is the appearance of large diagonal cracks in internal and external walls. | The most obvious sign that a householder has a problem is the appearance of large diagonal cracks in internal and external walls. |
| Doors and windows can become impossible to open. Cracks caused by subsidence tend to be wider at the bottom. | Doors and windows can become impossible to open. Cracks caused by subsidence tend to be wider at the bottom. |
| Home insurance premiums have risen in recent months, partly in expectation of an increase in subsidence claims, which have cost the industry as much as £540m in previous years. | Home insurance premiums have risen in recent months, partly in expectation of an increase in subsidence claims, which have cost the industry as much as £540m in previous years. |
| Britain’s last serious heatwave in the summer of 2003 resulted in subsidence claims of £390m, according to the Association of British Insurers. In a normal year, it said insurers would expect to pay out £75m to rectify the impact of subsidence on homes. | Britain’s last serious heatwave in the summer of 2003 resulted in subsidence claims of £390m, according to the Association of British Insurers. In a normal year, it said insurers would expect to pay out £75m to rectify the impact of subsidence on homes. |
| Since their peak in 1991, when subsidence claims topped £540m, payouts have fallen steadily, in part because insurers have taken a tougher stance with claimants. | Since their peak in 1991, when subsidence claims topped £540m, payouts have fallen steadily, in part because insurers have taken a tougher stance with claimants. |
| The AA recently warned that “shoparound” home insurance premiums were rising at a rate of 5.3%, on the back of cold weather claims from frozen pipes in January and in expectation of more heatwave-related subsidence claims. | The AA recently warned that “shoparound” home insurance premiums were rising at a rate of 5.3%, on the back of cold weather claims from frozen pipes in January and in expectation of more heatwave-related subsidence claims. |
| Kevin Pratt, an insurance expert at MoneySuperMarket, said anyone forced to claim would face a battle to find affordable cover, with excesses of £5,000 for subsidence claims increasingly common – if cover is offered at all. | Kevin Pratt, an insurance expert at MoneySuperMarket, said anyone forced to claim would face a battle to find affordable cover, with excesses of £5,000 for subsidence claims increasingly common – if cover is offered at all. |
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