Insurance News Archive
Insurers prepare for leap in subsidence claims
Insurers are preparing themselves for a rise in subsidence claims as parts of the UK prepare for what could be the worst drought in 100 years, according to reports.
Experts are warning that problems with subsidence could result in homeowners facing higher insurance premiums and being refused buildings insurance cover, the Telegraph reports.
Insurers typically set buildings insurance premiums by using postcodes which are matched to soil maps. A high-risk subsidence area could be charged at least double the premium of those in a low-risk area.
Christopher Jordan, the director of the Subsidence Claims Advisory Bureau, told the newspaper that subsidence will inevitably be a problem this summer.
"We already have drought conditions, when the ground shrinks, but we have not yet got the high temperatures. When we do, the trees will drain what little moisture is left and the ground will move," he remarked.
Financial experts are advising homeowners to shop around for buildings insurance as the extent of cover offered for subsidence differs greatly.
03 May 2006