Subsidence-related insurance claims totalled £153 million in the first half of 2025, as households across the UK felt the impact of an exceptionally warm and sunny spring, according to figures from the ABI.
Over the first six months of the year, insurers supported almost 9,000 households in recovering from subsidence damage, with the average payout per claim standing at £17,264.
Subsidence occurs when the ground beneath 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.
The ABI’s figures follow unusually high spring temperatures, with the Met Office confirming the UK experienced its warmest spring on record this year - with above-average temperatures across all four nations.1
Louise Clark, Manager of General Insurance Policy at the ABI, said:
“Climate change is significantly increasing the risk of subsidence in the UK, particularly in areas with clay-rich soils that sink and swell in response to changing moisture levels caused by hot temperatures.
"While not all cases can be prevented, homeowners can reduce the risk by managing nearby trees and shrubs that they own, and by ensuring that gutters, pipes and plumbing are well maintained to avoid leaks.
"If you suspect your property has suffered from subsidence damage, contact your insurer as soon as possible. It’s exactly what your home insurance is there to cover.”
Homeowners concerned about subsidence should look out for a few tell-tale signs. While not every crack signals a serious issue, those that are more than 3 millimetres wide - roughly the depth of a £1 coin - diagonal and wider at the top than the bottom, and visible both inside and outside the property may warrant further investigation.
Other indicators include doors and windows sticking without an obvious cause, or wallpaper that begins to rip or crinkle in areas not affected by damp. Subsidence cracks usually appear very suddenly, rather than gradually. If in doubt, seek professional advice and speak to your insurer.
Footnotes
1 – Met Office: Spring 2025 is warmest and sunniest on UK record
The ABI’s H1 2025 property claims data collection has improved market coverage compared to 2024. As a result, comparisons with previous periods should be treated carefully. Comparisons year on year of relative metrics such as average cost of claim and claims frequency should still be representative, but comparisons for absolute metrics such as total claims settled should be used with care.