UpMyStreet guides: home insurance & subsidence

Taking out a home insurance policy is another expense to factor in when adding up your household outgoings. But keeping your buildings insurance up to date can save you money in the long run, particularly when you consider the growing problem of subsidence in UK homes.

The number of properties blighted by subsidence is rising, and likely to increase even more following the effect of 2006's scorching summer on properties. This means that home insurance claims are also on the up.

Why home insurance can be vital

Subsidence occurs usually during hot and dry spells, when the bottom layer of soil on which a property's foundations are built on dries out. This can cause the soil to contract and the foundations become structurally unstable. Homeowners will be able to see telltale cracks in their walls. In the worst cases, the problem can make homes uninhabitable with home insurance claims costing tens of thousands of pounds. This means it's vital you have a home insurance policy that covers you adequately.

If you live in an area prone to this problem, ensure that your home insurance policy covers you for subsidence. Residents in London and the south-east are the biggest home insurance claimants as the clay soil in this part of the country absorbs more water.

The properties most often affected are pre-1965 houses, and in particular Edwardian and Victorian builds. Often your home insurance policy quote will reflect the increased risk in this type of property. If you spot any of the following signs, ensure that you contact your home insurance providers immediately:

• Cracks wider than the edge of a 10 pence piece along walls
• Seasonal cracks that grow and shrink at different times of year
• Cracks appearing next to doors or windows
• Window and door frames distorting

Get the right home insurance policy

You need to ensure that your buildings home insurance will cover you in the case that you need to make a subsidence claim. Taking out buildings insurance is usually compulsory when you take out a mortgage, but it is your responsibility to check it insures your home adequately for all risks. As well as protecting you in the event of structural problems, buildings insurance also covers permanent fixtures and fittings.

Always read the small print before you take out a buildings insurance policy. Check whether your home insurance policy would cover the cost of investigation and repair of subsidence problems. If you're covered, the home insurance company will foot the bill if they believe you've made a reasonable claim.

You should compare home insurance providers using an impartial comparison service. This way, you will receive information on a range of suitable home insurance policies in one place.

What home insurance won't pay for

Unfortunately, it's unlikely that your home insurance policy will cover the cost of preventing future subsidence problems. This means that while your property is covered for the immediate work needed to rectify the problem, long-term solutions such as underpinning the property may not be covered.

In any case, a policy excess is likely to be specified in your home insurance documents. You will need to pay up to that amount before any charges are covered by your insurance.

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