Average subsidence claim reaches £20,000 as record spring drives surge

The average home insurance payout for subsidence-related damage reached £20,000 in the second quarter 2026, data released today (3 August 2026) by the ABI has revealed.

The ABI said that the figure – which stands £2,000 higher than the average sum paid during the same period in 2025 – follows the warmest spring on record in England and Wales.

It means that, in total, insurers paid out £72m in Q2 2026 to satisfy subsidence damage claims, meaning approximately 3,600 properties have received payouts.

Subsidence claims are also expected to rise across the second half of the year, with this summer’s historic heat and rainfall levels driving soil dehydration and contraction.

Chris Bose, director of general insurance policy at the ABI, said: “The growing cost of subsidence and weather-related damage is a reminder of why improving the resilience of our homes matters.

“While insurers continue to be there for customers when they need them most – providing financial protection and support– reducing future losses demands a coordinated effort from homeowners, industry and government.

Improving resilience

The association also warned homeowners to be vigilant for cracks in their property that have developed rapidly, especially those wider than 3mm.

Diagonal cracks – particularly those wider at the top than the bottom and those apparent both inside and outside the property – should cause the most concern.

Bose added: “Simple steps can make a real difference. For new homes, building deep foundations can reduce the risk of subsidence. For older properties, maintaining nearby trees and drains and fixing leaking pipes can prevent problems from developing.

“As extreme weather becomes more common, protecting homes will be increasingly important to help communities better withstand its impacts.”