INSURANCE GUIDE Subsidence Insurance UK - cover for ground movement and structural damage |
TL;DR
- Subsidence cover is a standard section of most buildings insurance policies - you do not need a separate subsidence insurance policy for a new purchase.
- Once a property has a subsidence claim history, finding affordable buildings insurance becomes significantly harder - some insurers will not cover previous subsidence.
- The subsidence excess is typically GBP 1,000, which is considerably higher than the standard excess for other claims.
- Clay soil shrinkage in dry summers is the most common cause of UK domestic subsidence, particularly in London and the South East.
- Heave and landslip are related perils also typically covered alongside subsidence under buildings insurance.
Last reviewed: June 2026
KEY FACTS | |
| What it covers | Structural damage to the building caused by subsidence, heave, or landslip |
| Subsidence definition | Downward movement of the ground beneath the property causing structural damage - distinct from settlement, shrinkage, or defective workmanship |
| Standard excess | Typically GBP 1,000 for subsidence claims vs GBP 50 to GBP 250 for standard claims |
| Main causes in UK | Clay soil shrinkage in dry conditions; tree root activity; leaking drains undermining foundations; mining subsidence |
| Post-claim difficulty | Once a property has a subsidence claim, some insurers decline cover or impose significant premium loadings |
| Coal Authority | Mining subsidence in former coal mining areas falls under the Coal Mining Subsidence Act 1991 - separate compensation scheme |
What Is Subsidence Insurance?
Subsidence insurance is not a standalone product - it is a section of standard buildings insurance. Most buildings insurance policies in the UK include subsidence, heave, and landslip as standard covered perils. Subsidence is the downward movement of the ground beneath the property that causes structural damage - typically manifesting as cracks in walls, sticking doors, and sloping floors.
The practical insurance challenge with subsidence is not initially obtaining cover (it is included in standard policies) but what happens after a subsidence claim is made. Properties with a history of subsidence claims become significantly harder and more expensive to insure, as many standard insurers will either decline to cover them or apply very significant premium loadings.
KEY FACTS
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What Subsidence Cover Includes
Standard buildings insurance subsidence cover pays for: structural engineering investigations to diagnose and monitor the movement; underpinning or other stabilisation works to prevent further movement; repair of structural damage including cracked walls, damaged foundations, distorted door and window frames; and redecoration following structural repairs. The works can be very substantial - full underpinning of a property can cost GBP 10,000 to GBP 50,000 or more.
The standard subsidence excess is GBP 1,000 in most policies, compared to GBP 50 to GBP 250 for standard claims. This high excess is applied because minor cracks that might be described as subsidence are often settlement (normal compaction of new structures) or thermal movement, and the high excess discourages small, speculative claims.
Insuring a Property With Subsidence History
Once a property has had a subsidence claim, the options narrow. The existing insurer may continue cover at an increased premium. New insurers may decline cover entirely or offer cover that excludes the previous subsidence area. Specialist insurers and Lloyd of London markets cater for properties with subsidence history at higher premiums. The cost and availability of cover depend on: the cause of the original subsidence (resolved or ongoing); the remediation carried out (underpinned or monitored only); and the time elapsed since the claim (the longer ago, the better).
Related Guides |
Disclaimer: This guide is for general information only. Kael Tripton Ltd is not authorised or regulated by the FCA. Always verify details with an FCA-authorised insurer or broker before purchasing. |
Frequently Asked Questions
Is subsidence covered by standard buildings insurance?
Yes. Subsidence, heave, and landslip are standard covered perils in most buildings insurance policies. You do not need a separate subsidence insurance policy for a property without a subsidence history. Check your policy schedule to confirm that subsidence is listed as a covered peril and note the subsidence excess (typically GBP 1,000).
What is the difference between subsidence and settlement?
Subsidence is the downward movement of the ground beneath the property, typically caused by soil shrinkage, drainage failure, or tree root activity. It is an insured peril under buildings insurance. Settlement is the gradual, expected compaction of soft ground under a new building as it adjusts to the weight of the structure. Settlement is not covered by insurance as it is a foreseeable characteristic of new construction, not an unexpected event.
Does buildings insurance cover cracks caused by subsidence?
Yes, if the cracks are caused by subsidence as defined in the policy. The insurer will typically appoint a structural engineer to investigate whether the cracks are caused by genuine subsidence or by other causes (thermal movement, defective workmanship, drying shrinkage of new construction). Cracks from non-subsidence causes are generally not covered.
What is heave and is it covered?
Heave is the upward movement of the ground beneath or adjacent to the property, causing structural damage. It is typically caused by clay soil expanding as it re-wets following removal of vegetation (particularly trees). Heave is a covered peril alongside subsidence in most standard buildings insurance policies.
Does coal mining subsidence come under buildings insurance?
No. Subsidence caused by historical coal mining activity in former coalfield areas is covered under the Coal Mining Subsidence Act 1991, not by standard buildings insurance. The Coal Authority is responsible for investigating and remedying damage caused by coal mining subsidence. Property owners in former mining areas who experience subsidence should report it to the Coal Authority rather than claiming under their buildings insurance.
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