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How does subsidence affect your home insurance?
Subsidence is often mentioned in relation to home insurance but unless it’s something you’ve experienced, it’s not always clear what it is. To help you make informed decisions about the cover you need when choosing a home insurance company, we take a look at subsidence in more detail, and how it can affect your policy.
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What is subsidence?
Subsidence occurs when the ground beneath your property sinks, leading to potentially devastating and expensive structural damage.
In 2026, this is no longer a rare 'worst-case scenario' but an escalating risk driven by climate change. According to the latest ABI data, UK property insurers paid out a record £6.1 billion in claims in 2025—the highest annual total ever recorded.
Subsidence payouts alone surged to £307 million last year as record-breaking summer heatwaves caused widespread ground shrinkage. For many major providers, like Halifax, claims for subsidence have been known to triple during these hot, dry spells, making comprehensive cover more critical than ever.
What causes subsidence?
Subsidence can be caused by a number of factors—some man-made and some natural, including:
- Type of soil: some soil types are particularly vulnerable to subsidence. For example, clay soils tend to shrink and crack during dry spells which can cause the ground to move and shift.
- Trees and shrubbery: roots can also pose problems which can be worse for clay soils. As roots absorb more water, the clay shrinks even more.
- Water: underground leaks can erode and wash away soil (especially sandy soil) which can cause instability.
- Construction: building work can cause subsidence if it isn’t properly planned. Depending on the materials used, older homes can also be at greater risk of movement.
- Mines: subsidence can affect homes close to old mines. Even if mines have been filled-in, they can be put at risk if the ground moves.
Does insurance cover subsidence?
Generally speaking, yes, home insurance should cover subsidence. Subsidence is a standard ‘risk’ that is covered by most home insurance policies. Remember that insurers set their own terms and conditions, so you’ll need to check exactly what your policy says about subsidence. Some policies will only provide cover for your home and exclude outbuildings like a garage, shed or garden office.
If your property has a history of subsidence, total transparency with your insurer is mandatory. Due to the recent surge in weather-related claims, mainstream insurers have become significantly stricter in their underwriting. Failing to accurately disclose previous movement or property maintenance can lead to a total claim rejection—a growing concern given that the latest FCA Value Measures data shows home insurance claim acceptance rates have dropped to roughly 71%.
With some providers now rejecting up to 45% of claims, accurately documenting your property's history is the only way to ensure your policy remains valid when you need it most.
Subsidence and excess
Subsidence claims carry the highest excesses in the home insurance market, typically starting at a minimum of £1,000. In 2026, policyholders are facing a 'double squeeze'; not only have average combined premiums surged to around £384–£407 following years of record inflation, but properties with a known subsidence risk are seeing even steeper price hikes.
Recent market data shows that a history of subsidence can push premiums to an average of £545—over £300 more than an unaffected home. Because of this increased risk, some insurers are also raising compulsory subsidence excesses beyond the £1,000 baseline, making it vital to check your 2026 policy wording carefully.
How do I spot subsidence?
Hopefully your home won’t ever suffer from subsidence, but if it does, it’s important to recognise it quickly. Tell-tale signs can include:
- Cracks that appear suddenly rather than develop over time.
- Wide cracks (usually 3mm or more) that can be seen inside and outside of the house.
- Diagonal cracks that are wider at the top than at the bottom.
- Cracks appear near doors and windows.
- Creases in wallpaper not caused by damp.
Can you fix subsidence?
Yes, subsidence can usually be fixed. Naturally, the earlier you spot it, the easier it is likely to be for an engineer to identify the cause and resolve it.
In more serious cases, your home will need to be underpinned so that it’s structurally sound. While this is undoubtedly a good thing for your property, it can mean paying a slightly higher than average premium because of the perceived risk of a future claim.
How can I tell if a house has subsidence?
If you’re buying a home, the seller should be able to tell you if subsidence has been a problem. If you’re concerned, your surveyor should also be able to advise if you have a level two or level three survey done.
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It’s worth knowing that unless a property comes with all the relevant paperwork, it can be hard to tell if a house has been underpinned just by looking at it. Surveyors will have their own methods of assessing a property, but finding a definitive answer could mean having to dig an area near the foundations to find out.
How much does it cost to insure a house with subsidence?
Home insurance premiums are influenced by a number of factors, including:
- How old your home is, and the type of materials used to build it.
- Whether there are any trees near your house (if there are, you might be asked about proximity).
- How close you are to water.
- Any other relevant features, for example, if your home is built close to an old mine).
- Whether your home has had any issues with subsidence in the past.
This is on top of all the other information that insurers will ask you – such as postcode, number of bedrooms and rebuild cost. Insurers use all this information to calculate the probability of risk – the greater the risk of a claim, the more you’re likely to pay. So, if your home has had subsidence, you can expect premiums to be higher than for homes that haven’t.
Search for affordable home insurance without compromise
Any home insurance policy you choose should accurately reflect your needs. Comparing a wide range of quotes can help you do that while also ensuring you get value for money.
Cheap Home Insurance in Your Area
Home insurance comparison panel includes dozens of insurance providers.