More rain this winter would ease insurance claims

6th October, 2006

Insurance experts have warned that the continued drought could further increase the amount of claims lodged with home insurers. Subsidence appears on buildings when the foundations the building are based on suffer a loss of moisture due to either periods of very dry weather or due to large shrubs and trees absorbing moisture from the ground. Clay soil is also prone to shrinkage and swelling depending on ground water levels.

The Association of British Insurers (ABI) paid out over £290m in 2005 on subsidence clains, £199m in 2004 and £350m in 2003. Petter Kettrinham household underwriting manager at Norwich Union said " There is no doubt that the recent heatwave combined with a very dry winter and spring gives us cause for concern. "If the dry weather continues into 2007 we could see our subsidence costs rising significantly compared with an average year".

The signs of subsidence include 'Seasonal' cracks - these shrink and grow at different times of the year. Cracks which form diagonally across a wall. Cracks in some areas on both internal and external walls.

 

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