Does Home Insurance Cover Subsidence?

Yes, in most cases. The Financial Ombudsman Service says most home insurance policies cover subsidence, heave and landslip, and the ABI says standard home insurance covers that damage to the main home and its outbuildings. The cover sits in the buildings section, usually comes with a higher excess than other claims, and does not normally extend to settlement, poor workmanship or garden walls and patios on their own.

Is subsidence covered by buildings insurance or contents insurance?

Subsidence is damage to the structure of your home, so it is a buildings insurance claim. The ABI says buildings insurance will usually cover damage caused to the structure of your property and outbuildings by subsidence. Contents insurance protects your belongings and does not pay to stabilise foundations or repair walls. If cracking also damages items inside the house, whether those items are covered depends on your contents policy wording.

If you own a leasehold flat, the building is normally insured by the freeholder or management company, not by you. Our guide to what building insurance covers in a flat explains who claims and how.

What exactly do subsidence, heave and landslip mean?

Insurers and the Financial Ombudsman use these terms in a specific way, and the difference can decide whether a claim is paid.

• Subsidence is when the ground beneath a building sinks, pulling the foundations down with it. It usually happens when the ground loses moisture and shrinks, often on clay soils during long dry spells or near thirsty trees.
• Heave is upward movement of the ground beneath a building when the soil expands. It can follow the removal of a large tree, because the soil takes back moisture the roots used to draw out.
• Landslip is the downward movement of sloping ground.
• Settlement is downward movement caused by the weight of the building compressing the soil within 10 years of construction. It is treated differently from subsidence, as explained below.

The ABI lists the main causes of subsidence as clay soils, trees and shrubs close to foundations, old mine workings or filled quarries, and leaking drains or water mains washing soil away.

How much is the subsidence excess?

The ABI says most policies have an excess of around £1,000 for a subsidence claim, and that it may be higher if the property has had subsidence before. The Financial Ombudsman notes that where a leak caused the movement, insurers will usually look at the claim under the escape of water section first, which normally has a lower excess. Your schedule shows the exact figure, so check it before you assume what you will pay.

Question	Usual position	Where it comes from
Is subsidence covered?	Yes, under most home buildings policies, along with heave and landslip	Financial Ombudsman, ABI
Typical excess	Around £1,000, possibly higher after previous subsidence	ABI
Settlement of a new building	Treated as settlement, not subsidence, within 10 years of construction	Financial Ombudsman
Faulty design or poor workmanship	Typically uninsured	Financial Ombudsman
Garden walls, patios, drives	Not usually covered unless the house is damaged at the same time	ABI
Floor slab movement alone	Most policies exclude it if the foundations have not also moved	Financial Ombudsman
Alternative accommodation	Can be paid if the home cannot be lived in during repairs	ABI

What is commonly excluded from subsidence cover?

The Financial Ombudsman and the ABI point to several common limits.

• New buildings settling. The Ombudsman says most new buildings will settle during the first few years after they are built, and settlement is a separate thing from subsidence. Where a policy does not exclude settlement, the Ombudsman may decide a claim should not be turned down just because the movement relates to the weight of the building.
• Defective foundations and poor workmanship. The Ombudsman says subsidence damage may be due to faulty design and poor workmanship, and these causes are typically uninsured. The ABI also says damage caused by poor building practice is often not covered.
• Walls, fences, patios and drives. The ABI says these are not usually covered unless the damage happens at the same time as damage to your home.
• Floor slabs. Most policies exclude subsidence of floor slabs where the foundations have not moved as well.
• Cracks with other causes. Cracks do not automatically mean subsidence. Thermal movement, lintel failure and poor design can all cause cracking, and your policy might not cover these.

Other kinds of ground movement, such as erosion, depend on the policy wording, so read the definitions section of your policy rather than relying on a summary.

Do I need to tell my insurer about subsidence?

Yes. The ABI says to contact your insurer as soon as possible if you suspect subsidence. Delay can make the damage worse and give the insurer a reason to question part of the claim. You also need to answer questions about past subsidence honestly when you buy or renew cover. The Financial Ombudsman says that if a customer knew of subsidence but did not disclose it, the insurer may be able to void the policy, although being aware of cracks is not the same as knowing about subsidence. Our page on answering home insurance questions covers this in more detail.

If you changed insurer recently, the ABI Domestic Subsidence Agreement decides who handles the claim. If you notify within eight weeks of the new policy starting, the previous insurer deals with it. From eight weeks to one year, the insurer you notify first handles it and the two share the cost. After one year, the current insurer deals with it.

How does the Financial Ombudsman look at subsidence complaints?

The Ombudsman considers the type of ground movement using expert evidence, and whether the insurer investigated properly with trial holes, boreholes, drain inspections and crack monitoring. It says monitoring over 12 months is sometimes reasonable so that all the seasons are covered. It expects repairs to be effective and lasting, and has said that filling cracks and repainting cannot be regarded as repairing subsidence damage if the cracks are likely to come back. In one case it told an insurer to pay for stabilisation work it had called preventative.

You must complain to your insurer first. The insurer has 8 weeks to respond, and you then have 6 months from its final response to take the complaint to the Ombudsman. Our step by step guide to making a subsidence claim covers the process from first crack to final repair.

Can I still get insurance after a subsidence claim?

Usually, but it can be harder. The ABI says homeowners often find it difficult or expensive to get cover after a subsidence claim, and that where repairs were done under the insurer’s direction, the insurer will usually continue subsidence cover. If you are buying or selling, the ABI says the current insurer can usually agree to continue insuring the property for the buyer. See our guides to home insurance with a subsidence history and subsidence buildings insurance.

Example. Priya owns a 1930s semi on clay soil with a large oak in the neighbour’s garden. After a dry summer she notices a diagonal crack above the kitchen door, wider at the top, and the back door starts to stick. She calls her buildings insurer that week. The insurer sends a loss adjuster, digs a trial hole, has the oak roots identified and monitors the crack through the winter. The movement is confirmed as subsidence, the tree is dealt with, and the insurer repairs the house. Priya pays the subsidence excess shown on her schedule. Her cracked garden wall is not repaired because the movement there started a year earlier and was separate from the damage to the house.

Frequently asked questions

Does house insurance cover subsidence if I have just moved in?

Generally yes, if the damage starts while your policy is in force and you disclosed what you knew when you bought it. The Financial Ombudsman has said an insurer can exclude damage that predates the policy where it can separate it from newer damage, but where movement is progressive and it cannot separate the two, it may have to pay for all of it.

Is subsidence caused by a leaking drain covered?

Often, but it may be handled as an escape of water claim first, which usually carries a lower excess. If the policy excludes subsidence from escape of water claims, the higher subsidence excess may apply instead.

Will my insurer pay for somewhere else to live?

The ABI says that if the home cannot be lived in, the insurer can arrange and pay for temporary accommodation, up to a percentage of the total sum insured. The limit is in your policy wording.

Can I claim if cracks are small?

The ABI suggests looking for cracks more than 3mm wide that are diagonal and wider at the top than the bottom, as these are typical of subsidence. Hairline cracks are more often shrinkage or thermal movement. If you are unsure, tell your insurer.

Can Solar Protect help?

If your current insurer will not renew after a claim, ask us for a quote on 01795 841 310, Monday to Friday 9am to 5pm, or through our quote form. We will look for cover with insurers who consider properties with a subsidence history.

More on property insurance. Ready for a price? Ask for a quote or call 01795 841 310.

Sources

• Financial Ombudsman Service: Subsidence types ground movement
• ABI: How subsidence can affect your home
• ABI: What if subsidence happens
• Financial Ombudsman Service: Subsidence types ground movement
• Financial Ombudsman Service: Insurer says not liable preventative work investigation found otherwise
• Financial Ombudsman Service: Subsidence occurred policy came force insurer denies liability
• ABI: Getting insurance after making a subsidence claim
• Financial Ombudsman Service: Time limits

Reviewed by Christine Anderson, Broker, Solar Protect. Last reviewed 6 November 2026. Solar Protect is the trading name of Solar Insurance Services (Medway) Limited, authorised and regulated by the Financial Conduct Authority. This page is general information, not advice on your own circumstances.