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ABI reports on “Sinking UK” – last summer’s record-breaking heatwave leads to surge in insurance pay-outs for subsidence

Link(s):Sinking UK – last summer’s record-breaking heatwave leads to surge in insurance pay-outs for subsidence | ABI

Context

Last summer’s record-breaking heatwave led to a surge in subsidence claim pay-outs, according to figures out today from the ABI.

Key points to note

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 heatwave, which peaked with the hottest UK temperature since records began of 40.3 degrees on 19th July, resulted in the equivalent of one new subsidence claim made every 15 minutes in the second half of the year. 

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.”

Next actions

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