What is typically imposed on claims for subsidence, ground heave, or landslip under building insurance?

In building insurance, claims related to subsidence, ground heave, or landslip typically come with a substantial excess. This is due to the significant and potentially catastrophic nature of these issues, which can result in extensive damage to properties. Insurance providers recognize that these types of claims can lead to large payout amounts, leading them to impose higher excesses to manage risk.

A substantial excess serves multiple purposes: it encourages policyholders to be more cautious and take preventive measures against such risks, and it also helps to keep insurance premiums more affordable for the majority of policyholders who may not experience these issues. Having a high excess means that the insured would need to cover a larger portion of the claim themselves before the insurance kicks in, which is particularly relevant in cases where the costs can be substantial.

Policies might vary in the specifics regarding the excesses tied to various claims, but it is generally accepted that higher risks, like subsidence, will carry a correspondingly higher excess. This practice reflects a balance between the insurer's need to manage risk and the insured's ability to claim on their policy.