With ground conditions worsening and insurers bracing for a surge in claims, now is the time to check your clients' buildings insurance – before the cracks appear
It won’t come as a surprise to hear that the UK's climate is changing. What might come as a surprise, however, is the impact this could have on the structural integrity of your clients’ properties.
One of the major threats to homeowners right now is subsidence. Recent data shows that this is an increasing financial worry for households across the country, and therefore an important area of focus for intermediaries.
A precedent-setting subsidence ‘surge’ year
Ground engineer experts correctly identified 2025 as a potential surge year and according to recent data from the Association of British Insurers (ABI), subsidence-related insurance claims have reached alarming levels. £153 million in claims was paid out in the first half of 2025 alone, with nearly 9,000 households suffering from subsidence damage during this period. The average payout per claim stood at £17,264. It’s a pattern that has continued into 2026. The Met Office confirmed that the UK experienced its warmest spring on record in 2026. The combination of above-average temperatures and below-average rainfall created perfect conditions for subsidence to take hold.
So, what’s in store for 2026? Based on current forecasts and analysis, it appears 2026 will be another significant year for subsidence claims because of the risks associated with continued ground movement. The issue has been exacerbated by the recent prolonged warmer and drier weather, meaning insurers are expecting subsidence claims and incidents to rise as the impact of the sustained dry conditions becomes more apparent between now and September. Looking even further ahead, according to a new study released in June by the British Geological Society, more than 4 million UK homes face a potential risk of damage from subsidence by 2070.
Understanding subsidence
Subsidence occurs when the ground beneath all, or part of a building sinks, pulling the property's foundations down with it. It typically happens when soil loses moisture and contracts, often due to prolonged dry spells or the presence of trees and shrubs that draw water from the ground. Clay-rich soils are particularly susceptible to this shrinkage, creating downward movement in buildings and adding strain to the structure of properties.
Other non-climate-related causes include a trend towards replacing grass with astroturf or replacing grass areas with stone/tarmac. Both of which serve to reduce natural drainage and further dry out the ground.
Signs of subsidence include diagonal cracking in walls, sticking doors and windows, and visible gaps where walls meet ceilings or floors.
Practical steps your clients can take to reduce subsidence risk
It's wise to advise your clients of preventative measures they can take to reduce their subsidence risk. These include removing or cutting back trees and shrubs planted too close to their property, fixing leaking drains promptly, and clearing debris from gutters to ensure proper water management around the foundation.
However, the biggest risk for your clients is the insurance risk, or more accurately, the risk of not having the protection they need when subsidence strikes.
Getting the right insurance cover is the best protection
Unfortunately, a high proportion of homeowners don't know whether their buildings insurance policy covers subsidence. Or they may have insufficient cover given the current high rebuild costs as a result of the prolonged period of inflation and supply chain issues the UK has experienced in recent years. Your role as their trusted advisor is invaluable. Now is the time to proactively check in with clients to review their buildings insurance, verify subsidence cover is in place, and ensure their rebuild costs are accurate and up to date.
For clients who have suffered a subsidence claim in the past, securing cover can be more challenging. They may find they can only obtain cover with their existing provider, and any future purchaser of the property may struggle to secure insurance, even if historical subsidence has been fully remedied. This can significantly impact property values and marketability. This is where using a non-standard specialist insurer can support your clients.
Start planning ahead now
If you're having difficulty sourcing cover for a client, particularly those with an adverse claims history or properties in high-risk areas, it's always worth checking in with your general insurance provider.
If you have the right non-standard provider, there's a good chance they've successfully handled similar complexities before. What’s more, they can provide access to a panel of non-standard insurers in the UK, ensuring you place business not only at the best price, but with the right terms to meet the individual needs of your clients.
With subsidence risk only set to increase in the years to come, now is the time to ensure your clients have the protection they need. Don't wait for the cracks to appear; reach out today to review your clients' cover and give them peace of mind for the future.
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