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UK’s biggest insurer hit by rise in subsidence claims after record hot summer

UK’s biggest insurer hit by rise in subsidence claims after record hot summer

Summary

Aviva and other UK insurers have reported more subsidence claims after two record-hot summers. Subsidence occurs when dry soil shrinks beneath a home and shifts its foundations; the average UK claim reached £20,000 from April to June.

Key Facts

  • Aviva said claims peaked from July to September and continued into October, but did not disclose the size of the increase.
  • Hastings Direct said its subsidence claims in August were up 140% from a year earlier, a record for the company.
  • Axa described the year as a surge year for subsidence claims.
  • The average UK subsidence claim reached £20,000 from April to June, more than £2,000 above the same period a year earlier.
  • Insurers paid £72 million for domestic subsidence claims from April to June, compared with £60 million in the same period the previous year.
  • The British Geological Survey estimates that more than 4.2 million UK homes could be at risk of subsidence by 2070.
  • Homes with shallow foundations and those on clay-rich soil face greater risk, with London, Essex, Kent and areas near Oxford among the vulnerable locations.
  • Aviva reported a 19% rise in general insurance premiums to £11.8 billion in the third quarter.
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