It may have only made the local news but it is an international problem. This week a huge hole opened up in St Albans.

Some suggest it was the additional weight caused by unnecessary pizza menus and such supplements in the local paper making the delivery persons bag too heavy. I personally think that is just speculative conjecture and that the real problem is extensive underground weakening by continued building work or something more geologically complicated. Let’s paraphrase wikipedia –

A sinkhole, also known as a cenote, sink, sink-hole,^[1] shakehole,^[2] swallet, swallow hole, or doline (the different terms for sinkholes are often used interchangeably^[3]), is a depression or hole in the ground caused by some form of collapse of the surface layer. Some are caused by karst processes—for example, the chemical dissolution of carbonate rocks^[4] or suffosion processes.^[5] Sinkholes may vary in size from 1 to 600 m (3.3 to 2,000 ft) both in diameter and depth, and vary in form from soil-lined bowls to bedrock-edged chasms.

I think we can all agree that ‘swallet’ is a much better word. It is suggested that a swallet can occur both suddenly (more usual) or gradually. A precedent to most indenmity / liability is that an insured peril must be sudden and unforeseen and so a gradual sinking over a period of time, whatever the cause, is unlikely to be met by an insurer. Sudden and unforeseen (i.e. not historic) movement in the ground should be covered by a property policy which includes subsidence cover.

Subsidence is not always a standard cover, particularly if the buildings cover is part of a more complex commercial insurance policy, so firstly I would suggest that you ensure that your policy carries subsidence cover and furthermore that the wording doesn’t exclude swallets / cenotes etc… Not that it should.

Secondly depending on the insurer or area the excess will vary. The excess for subsidence will generally be higher than that for fire or theft etcetera. This is due to any likely loss being expensive to repair and prevent any further loss. Typically repair will involve underpinning, piling or similar works, often invasive and time consuming. Excesses start at £1000 generally but in areas which have a high risk of subsidence may be more, £5000 is not uncommon. Some insurers may start at £5000 as standard. Often this can be reduced by completing an insurers subsidence questionnaire.

Obtaining subsidence cover for a property with a history of subsidence is of course going to be challenging and the excess is not likely to be low however depending on the remedial works done and the time elapsed it can be done.

Whatever your current situation the important ‘take home’ note is that subsidence is not restricted to one particular area, nor is there much warning so not having cover could leave you without a home or a business premises so please check your policies.

The above sinkhole appeared in Illinois and managed to swallow a man on his way to play golf. <insert amusing hole in one joke> He was fine in case you wondered.

This one a little closer to home in High Wycombe. Perhaps it could be the start of a moat? Certainly something I’d rather not wake up to and something I would want to ensure is insured. Whilst mentioning this it would be important to note that the subsidence section of a policy wording is likely to exclude such damage unless a ‘building’ is damaged in the process. One would suggest from the picture above that the sinkhole has compromised the foundations of the building and so the potential for a successful claim is clear. Although similar, every wording is different so it is worth a thorough check.

We are happy to field any queries you have about property insurance whether commercial or personal.

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