20 July 2010

Dry Summer May Lead To Increase In Household Subsidence

• Driest six months for 80 years may lead to increased frequency of household subsidence
• Householders urged to look for early signs of subsidence and contact their insurer for advice

Householders are being urged to look out for the early signs of subsidence on their property as the UK experiences the driest period for more than 80 years, according to home insurance provider M&S Money.

The Met Office has said that average rainfall for January to June this year was 356.8mm – the lowest reading since 1929 when 275.7mm was recorded.

While the drier conditions have led to pressure on water resources in some areas, home insurance companies are warning about the increased risk of household subsidence.

Dry weather often leads to an increased frequency of subsidence claims. Clay soil shrinks and becomes unstable as moisture is taken out of the soil by trees and shrubs near homes.

Claims data* shows that there have been low levels of subsidence in the last three years due to relatively wet summers. 2006 was the last year in which there was an increased frequency as a result of a long dry period.

Andrew Ferguson, M&S Head of General Insurance, said: ‘The outlook for this summer is currently predicted to be 27% drier than average, so it looks like we have the conditions for subsidence losses. Repairing the damage caused by subsidence can cost of thousands of pounds, so it’s vital to know the early signs to look out for.

‘The most obvious indication is cracking to the property. However, most buildings experience cracking at some time and there is no need to be alarmed by every crack that appears.

‘What should be looked out for are small, usually diagonal, cracks which suddenly appear in plaster work inside and outside bricks at weak points, such as around doors and windows. These may indicate movement in the building’s foundations. The cracks will normally be thicker than a 10p coin, and usually be wider at the top. Householders who have concerns should contact their home insurer as soon as possible.’

Marks & Spencer Home Insurance is available by telephone on 0800 068 2742 and online at www.marksandspencer.com/homeinsurance

Ends

Notes to Editors

*Claims data supplied by AXA Insurance UK plc, which underwrites M&S Home Insurance.

For further information please call the M&S Money press office:

Simon Coughlin on 020 7992 1574
simon.coughlin@mandsmoney.com

Liz Neild on 01244 686 068
liz.a.neild@mandsmoney.com

M&S Money (the trading name of Marks & Spencer Financial Services) was founded in 1985 as the financial services division of Marks and Spencer Group plc, making 2010 the company's 25th anniversary.

The company is a top-ten credit card provider and the second-largest travel money retailer in the UK.  M&S Money also offers a range of insurance cover, including home insurance and car insurance, as well as loans, savings and investment products.

In November 2004, Marks & Spencer sold M&S Money to HSBC. HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in London. The Group serves customers worldwide from around 8,000 offices in 88 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. With assets of US$2,364 billion at 31 December 2009, HSBC is one of the world’s largest banking and financial services organisations. HSBC is marketed worldwide as ‘the world’s local bank’.

M&S Money has an executive committee comprising an equal number of representatives from HSBC and Marks & Spencer.

M&S Home Insurance policies are provided by AXA Insurance UK plc. Terms, conditions, exclusions and limitations apply. Calls may be monitored and recorded.