Is subsidence normally covered by landlord insurance policies?
Subsidence is one of those words that makes most landlords uneasy. Cracks climbing up walls, floors starting to slope, or doors refusing to shut properly all suggest the ground under the property is on the move. In the UK, clay soils, tree roots, and swings between heavy rain and drought are common culprits. So, does landlord insurance cover it? Often yes. Subsidence is usually part of buildings cover, which forms the backbone of most landlord policies. But it’s not always guaranteed, and the small print can be the difference between a valid claim and a painful rejection.
What is subsidence and why is it such a problem?
Subsidence happens when the ground beneath a property shifts, usually downward, causing the foundations to sink unevenly. Unlike hairline cracks from minor settlement, this can threaten the building’s structure as a whole. For landlords, that means two problems at once: the cost of major repairs and the possibility of losing rental income if tenants can’t stay during the works. In severe cases, the property may even be unsafe to live in, creating both legal and financial headaches.
How do insurers define subsidence?
Insurers usually describe subsidence as the downward movement of ground beneath a property’s foundations, separate from natural settlement. They often distinguish it from heave, where the ground moves upward, or landslip, when soil shifts sideways. Many landlord policies include subsidence, but heave and landslip aren’t always covered. That’s why checking the wording is crucial. Making assumptions could leave you footing the bill for very expensive repairs.
What does subsidence cover usually include?
If your policy does include subsidence, it may cover:
- Structural repairs: Work to rebuild or stabilise affected walls, floors, and foundations.
- Professional investigations: Surveys and monitoring to confirm subsidence and identify solutions.
- Rebuilding costs: Demolition and reconstruction if the damage is beyond repair.
- Alternative accommodation: Temporary rehousing for tenants if the property is uninhabitable.
This level of support matters because repairs often run into tens of thousands. But insurers usually set strict conditions before approving a claim.
What exclusions or limits often apply?
Subsidence may be included, but there are usually strings attached. Common limits are:
- Pre-existing damage: Any cracks or movement that existed before cover started are excluded.
- Poor maintenance: Issues linked to ignored drains, unchecked damp, or overgrown trees may not be covered.
- Cosmetic damage: Hairline cracks or small blemishes aren’t usually included unless structural safety is at risk.
- High excesses: Subsidence claims often carry higher excesses, sometimes several thousand pounds.
These conditions underline how important it is to maintain properties and keep clear records of inspections and repairs.
What early signs should landlords look out for?
Catching subsidence early can limit damage and strengthen a claim. Key warning signs include:
- Cracks wider than 3mm, especially those that widen at the top or follow a stepped pattern in brickwork.
- Doors or windows sticking or not closing properly.
- Floors starting to slope or gaps forming between skirting and walls.
- Wallpaper rippling where walls meet ceilings.
Not every crack signals subsidence, but ignoring them could be costly. When in doubt, a structural survey is the safest option.
Does tenant behaviour affect subsidence risk?
Subsidence is usually caused by environmental or structural issues, not tenant actions. That said, if tenants fail to report problems like leaking pipes, the risk can grow. For example, water escaping under the property can wash away soil that supports the foundations. Encouraging tenants to flag problems quickly protects your property and shows insurers you manage responsibly.
How does subsidence impact tenants?
Subsidence isn’t only a landlord’s problem. Tenants may feel unsafe, become frustrated with ongoing works, or have to move out during repairs. That disrupts lives and can harm the landlord-tenant relationship. Having cover that includes alternative accommodation helps massively. It reassures tenants they won’t be left without a home and protects landlords from disputes or reputational damage.
What happens if subsidence is discovered during a mortgage application?
Subsidence can complicate refinancing or selling. Lenders often want proof of insurance that includes subsidence cover. If insurers refuse due to historic subsidence, securing finance may be tough. Specialist insurers may still offer cover, but at higher premiums. Being upfront is vital. Trying to hide a history of subsidence is risky and could invalidate cover completely.
How should landlords approach a subsidence claim?
Claims for subsidence are usually more complex than for other issues. Be ready for:
- Long investigations: Insurers often want months of monitoring to confirm movement.
- Detailed paperwork: Evidence of maintenance, inspections, and repair history.
- Professional involvement: Surveyors, engineers, and builders are almost always part of the process.
It takes patience. Claims may stretch over a year, testing both landlords and tenants. But persistence, along with thorough documentation, usually pays off.
Are all properties equally at risk?
No. Homes built on clay soils, older properties with shallow foundations, and those close to large trees face higher risk. Newer homes on stable ground are less likely to be affected, but no property is immune. Landlords with portfolios across different regions may notice premiums vary depending on soil type and local conditions, reflecting insurer risk models.
Practical steps to reduce subsidence risk
Landlords can’t remove the risk entirely, but they can lower it. Steps include:
- Keeping drains in good condition to prevent water damage and erosion.
- Pruning or removing trees close to the property, especially those with aggressive root systems.
- Fixing leaks promptly to stop soil washing away.
- Carrying out inspections and keeping records as proof of good management.
These actions not only reduce the chance of damage but also improve your standing with insurers if you need to claim.
Final thought: does landlord insurance cover subsidence?
Subsidence is often included in landlord policies, but the detail matters. Cover usually stretches to repairs, investigations, and even tenant rehousing, but high excesses and strict exclusions make claims complex. For landlords, preparation is key: maintain the property, document your work, and read your policy carefully. Subsidence might be one of the most feared risks in property ownership, but with the right cover and some foresight, it doesn’t have to turn into a disaster.