Subsidence claims in 2022 after the heatwave have been the highest since 2006 with expected payouts totalling £219m.

Read the full Insurance Age article here.

UK subsidence claims increased by 140% in September 2022 (source: Allianz Commercial) due to adverse soil conditions brought on by a hot/dry summer and drainage leaks. Subsidence is a complex risk resulting in lengthy claim resolutions.

(Article from Insurance Business UK - October 2022)

"The UK has been experiencing the hottest summer since 1976 – the fifth driest on record – leading to the highest levels of subsidence claims over the last 20 years. Fortunately, weather risk management provider EuroTempest has found that the surge in subsidence claims will likely revert to its normal levels for the rest of this year.

The high rainfall levels recorded in mid-August, along with shorter daylight and lower temperatures, have been easing dry ground conditions that often result in subsidence. However, EuroTempest noted that the longer-term forecasts don’t necessarily promise more rainfall in the later months."

(Insurance Business UK - September 2022)

"An insurance brokerage is offering a reminder to all business owners that the national shortage of building materials has a knock-on effect on their insurance costs.

H&H Insurance Brokers is warning that the UK is undergoing a huge shortage in building materials – mainly due to disruptions caused by the COVID-19 pandemic and partly because of Brexit. The shortage has led to the prices of timber and steel rising rapidly month-over-month. The broker also pointed out that in September 2021, the price of timber surged by 23% – and it is currently 64% higher than its price in July 2020."

(Insurance Business UK - November 2021)

“Sedgwick’s newest report on building repair costs in the UK reveals how the COVID-19 pandemic exacerbated issues the sector was already experiencing even before the coronavirus hit.

According to the firm’s Q1 UK building repair cost review, there was a 5% increase in repair costs during the period. Sedgwick noted that during the quarter, many manufacturers operated at reduced output as a result of the pandemic. The report also suggests that cost increases could continue to rise to 7% by the end of 2021."

(Insurance Business UK - September 2021)