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London faces record subsidence insurance claims after heatwaves
The Association of British Insurers said the average household payout reached £20,000, up 15.0% from the same period in 2025, as hot, dry weather dried out clay soil beneath homes.
Londoners are facing historic levels of subsidence risk after five successive heatwaves dried out the clay soil that supports much of the British capital, raising the chance of foundation movement. SCMP Economy, citing Association of British Insurers data, said subsidence-related insurance claims hit a record last quarter.
According to the ABI, households claimed an average of £20,000 (US$27,200) for the risk, the highest on record, and that figure represented a 15.0% jump versus the same period in 2025. The ABI also said the trend is expected to continue as hot weather drives more subsidence cases.
The story highlighted public reaction, including accounts of cracked homes and doors sticking shared online, as well as reports from homeowners describing engineer responses to the scale of damage. SCMP Economy also quoted Otso Lahtinen, chief executive of Geobear, saying subsidence is becoming the new norm and could occur more often over the next 20 to 30 years.