Subsidence-related home insurance claims reached £153 million in the first half of 2025, according to data from the Association of British Insurers (ABI), as record spring temperatures contributed to an increase in ground movement damage.
Insurers supported almost 9,000 households between January and June, with an average payout of £17,264 per claim. Subsidence occurs when the ground beneath a property sinks, often because soil loses moisture and contracts during prolonged dry spells. The presence of trees and shrubs drawing water from the soil can also contribute.
The ABI’s figures follow confirmation from the Met Office that the UK recorded its warmest spring on record this year, with above-average temperatures across all four nations.
Louise Clark, manager of general insurance policy at the ABI, said climate change was increasing the risk of subsidence in the UK, particularly in areas with clay-rich soils. She urged homeowners to manage vegetation, maintain plumbing and drainage and contact their insurer promptly if subsidence is suspected.
According to the ABI, signs of subsidence include cracks wider than three millimetres that are diagonal, wider at the top than the bottom, and visible inside and outside the property. Doors and windows sticking without clear cause, or wallpaper rippling in dry areas, may also indicate movement. Subsidence cracks tend to appear suddenly.
Following the ABI’s report, AXA UK renewed its call for the Government to appoint a Minister for Resilience to address risks linked to extreme heat and flooding. The insurer noted that Labour had committed to such a role while in Opposition, and said it was essential to protect homes and businesses and integrate resilience into future building plans, including the target of constructing 1.5 million new homes over the next parliament.
AXA UK’s own research, published last year, found that more than half, or 52%, of respondents felt their homes were not equipped to deal with flooding or extreme heat, and 48% had never checked whether their home insurance covered them for damage caused by high temperatures.
When launching the report in November 2024, Tara Foley, CEO of AXA UK & Ireland, said extreme weather events posed both financial and human impacts, and called for targeted investment in areas most at risk. She added that new housing developments should avoid flood-prone areas and existing homes should be adapted to withstand climate-driven risks, such as subsidence.
