Homeowners to receive record £219m of subsidence payouts 

Homeowners will receive a bumper £219 million payout from their insurers for subsidence claims made last year.

Insurers are expected to pay out the highest amount since 2006 after the hot, dry summer of 2022 meant thousands more homes were hit by problems caused by sinking ground.

Insurers received 18,000 new claims in the second half of 2022, figures show.

Baked: Insurers are expected to pay out £219m in subsidence claims, the highest amount since 2006

The searing temperatures, which peaked at 40.3c (104.5f) in July, led to a new subsidence claim being made roughly every 15 minutes between July and December, according to the Association of British Insurers (ABI).

Subsidence occurs when the ground beneath a building sinks and the property’s foundations are pulled down with it. 

It can knock as much as 20 per cent off a property’s value, while lenders often refuse to lend on affected homes until the issue is resolved. 

Giveaways include large cracks in walls, and diagonal cracks around window and door frames.

The average subsidence claim incurred last year was £9,600, the ABI says.

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