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Sinking UK – last summer’s record-breaking heatwave leads to surge in insurance payouts for subsidence

  • Insurers expect to pay £219 million in subsidence claims made in 2022, many of which were caused by last summer's record-breaking high temperatures. This is the highest expected insurance subsidence bill since 2006. 
  • Last summer’s heatwave led to 18,000 subsidence claims- the equivalent of one new claim every 15 minutes during the second half of last year. 

Last summer’s record-breaking heatwave led to a surge in subsidence claim payouts  according to figures out today from the Association of British Insurers (ABI). The heatwave – which peaked with the hottest UK temperature since records began of 40.3 degrees on 19 July - resulted in the equivalent of one new subsidence claim made every 15 minutes in the second half of the year. 

Figures out today from the ABI highlight that in 2022: 

  • While the final insurance bill has not been fully settled due to ongoing monitoring of some homes to assess the extent of any subsidence damage, ABI members expect to pay out £219 million in subsidence claims. This will be the highest annual subsidence payout in 16 years since 2006. 
  • The average subsidence claim incurred was £9,600. 
  • Of the 23,000 subsidence claims made during the year, the majority -18,000- were in the second half of the year following the summer heatwave. 

Laura Hughes, ABI’s Manager, General Insurance, said: “Thousands of homeowners felt the impact of last summer’s record-breaking heatwave long after temperatures returned to normal. Insurers understand that suffering subsidence is worrying and stressful. They have, and will continue to, support their customers during any monitoring period to ascertain the extent of the damage, and what repairs or work will be needed for a long-term solution.”  

 For more information please contact  ABI Press Office.

   


Last updated 14/04/2023