The true cost of subsidence claims from the hot and dry summer of 2003 is only now coming to light, said Sainsbury’s Bank, as it warned that 2004 could see a further increase in claims.
It said the cost of claims from last summer were only now being confirmed, with many old claims being reopened due to the recurrence of damage, leading to increased costs of claims.
The Bank warned that due to extreme weather conditions becoming more commonplace, homeowners need to be more aware of the increased risk of subsidence and should be taking precautionary measures.
Sainsbury’s Bank home insurance manager Robert O’May, said: “Last year saw a significant increase in the number of subsidence losses being notified which in total were worth around £390 million.
“In part, this was fuelled by August being the second driest month on record which contributed to the fact that some 22,100 subsidence claims were notified during the last quarter of 2003 compared to 6,900 for the second quarter.
“However, although homeowners cannot control the weather they can take steps to reduce the chances of falling victim to subsidence.”
