Neighbour-caused subsidence - what happens to our insurance premium?

[Bells2025]

In case anyone else has been in this situation, I’d be so grateful to hear about it. Our neighbour’s extensive recent building work (we’re in a terrace) has caused subsidence to our house. They’re taking responsibility for this, and any surveys, repairs etc. But presumably, as our home insurer has to be notified of any subsidence, our insurance premium will rise. Can it be possible that we will now have to forever pay a higher premium because of damage that is entirely not our fault?!?

I’m not sure, but do know you need to be given a ‘Certificate of Works’ to prove that the repairs have been done to a sufficient standard.

Only your insurance can tell you this but if the neighbours are admitting fault and helpful then their insurance could potentially give you a sum to cover increases.

id speak to your insurance and let them know the situation.

I'd say you need legal advice. You may have cover on your policy. There could be far reaching ramifications which you will need advice for.

I would contact your insurer and discuss with them. I would expect them to liaise with your neighbour’s insurers for assurance that remedial works are sufficient and not going to cause a long term problem.

Monitoring may be required for a period of months (this should have been done as part of a party wall agreement before they started building works). Your neighbours may be accepting liability now, but with the summer we are having this will be a surge year for subsidence insurance claims. So monitoring may be required to confirm that the movement is not seasonal, but caused by building works.

I would expect your excess to increase significantly for any future subsidence claim, but I wouldn’t necessarily expect your insurance cost to double.

I work in the subsidence industry but not in insurance directly.

Thank you all so much for all your very helpful thoughts. There was a party wall agreement, and hopefully all will be done correctly from the neighbour’s side on the next steps - but it does seem like it would be grossly unfair if we have to pay for the consequences of their building error!!

You should be entitled to receive compensation for financial loss. Increased insurance premiums is part of that is it not? You have home insurance. If it includes legal cover take advice from a solicitor.