Not insuring against subsidence could cause debt worries

People in debt could avoid large repair bills on their properties by insuring their houses against subsidence risks.

Halifax has warned homeowners about the increased possibility of such damages due to dry conditions becoming more common because of climate change.

If houses are affected by subsidence then it could leave the homeowner in serious financial worry as the bank estimates the costs could go into the hundreds of thousands of pounds or even lead to the home being destroyed.

Halifax had almost 3,000 subsidence claims last year, which is a 22 per cent rise since 2008.

Neil Curling, senior claims manager at the company, explained that trees near a house could cause significant damage in the dry periods because the “clay soil can become unstable as it dries out and shrinks”.

However, there are measures which can decrease the risk, for example removing the tree solves 84 per cent of tree-related subsidence claims.

Consumers may be able to save on their annual car insurance bill after the launch of a new policy from insurethebox that charges policy holders on a pay-as-you-drive basis.

By James Perkins