QuestGates warnes the insurance sector could be facing a significant year for subsidence claims in 2012.
Ross Macpherson, Director at QuestGates, says: “The latest data from the Environment Agency confirms that in some parts of the country groundwater levels are lower than in 1976, which as many of us will remember, was the year of the “heat wave”. Many rivers, particularly in the south-east and East Anglia have completely dried up and swathes of the country are either officially in drought or heading towards it. An alarming picture given that we are only in February.”
Whilst Scotland has reported its second wettest winter for a century, conversely Thames Water has confirmed that London and parts of the south east have received below average rainfall for 18 of the last 23 months.
Ross warns that this is a potentially significant factor, particularly as many properties in this part of the country are built on highly shrinkable clay sub-soils, which are more susceptible to drought.
He says: “MORECS (the Meteorological Office rainfall and evaporation calculation system) is already confirming moisture deficiency in sub-soils, meaning we are starting the spring with inadequate moisture. Unless we get a prolonged period of consistent rain then the threat of increasing incidents of subsidence remains high. In our opinion insurers should be preparing themselves to manage the likely influx of claims. Brokers should consider alerting their clients in the worst affected areas to be on the lookout for cracks and consider potential mitigation measures such as tree work, albeit this would need to be done under the auspices of a specialist, such as an arboriculturist.”
He concludes: “Avoiding expensive and potentially disruptive underpinning measures is in the interests of both the insured and insurer, so early diagnosis is essential to mitigate and manage the loss. The sooner a loss adjuster – preferably one that is a qualified engineer/surveyor – can visit a property, the sooner the investigation can start and mitigation measures can be put in place to negate the loss.”
