Subsidence insurance and claims

Policy wording on this page was checked against the published booklets on 29 October 2026. How we check

Subsidence and settlement, as insurers see them

One Irish policy defines subsidence as the downward movement within the ground independent of the building load, and settlement as vertical movement of the ground surface, and of the foundations on it, arising from the weight of the building (Aviva). The difference matters: in that policy, subsidence is covered and settlement due to the building's load is excluded.

Definitions of settlement and subsidence from the Aviva Homeshield policy booklet; pyrite heave from the C&AG. Drawings are schematic.

What one Irish policy excludes from subsidence cover

• Settlement due to the building's own load, and bedding down
• Coastal, lake or river erosion
• Structural alterations, repairs or demolition
• Defective design or construction, defective or inappropriate foundations, and faulty materials
• Building on made-up or filled-in ground, and tunnelling work
• Walls, gates, fences, hedges, terraces, patios, drives, paths, tennis courts and pools, unless the home itself is damaged by the same cause at the same time
• Floor slabs, unless the foundations under the walls are damaged at the same time by the same cause
• Contents, unless the home is damaged at the same time by the same cause
• Causes that arose before the policy started
• Apartment blocks
• A building that had subsidence, heave or landslip before, unless that was disclosed and accepted

Source: Aviva Homeshield Gold policy booklet, from 1 September 2024, section A, subsidence. Read your own booklet: insurers word these differently.

Making a claim

1. Tell the insurer early.As soon as reasonably possible, with full details and supporting evidence within 30 days (Aviva policy conditions).
2. Keep a record.Dated photos of every crack, inside and out, and any monitor readings.
3. Expect an assessment.The insurer will want the cause established. Have your own chartered engineer's view if you can.
4. Agree who does the work.Some insurers can choose to arrange the repair themselves, or use their own network of contractors (Aviva; Bank of Ireland). You can still ask for an independent price.
5. Know what's covered on top.Reasonable engineers' and surveyors' fees are covered under one policy; preparing the claim isn't (Aviva).
6. Keep the invoices.The insurer can hold back up to 5% of a settlement under €40,000, or 10% of €40,000 or more, until you send VAT invoices for the finished work (Aviva).

Buying a house with subsidence

Kieran McCarthy's advice to buyers: if the house is still owned by the seller, their insurer may pay for the subsidence repair; buy it without advice and it becomes your problem, and unlikely to be covered by your insurance (Irish Examiner, 2021). A chartered building surveyor told The Irish Times that invasive investigations before contracts, including a detailed drainage survey, are essential, and a selling agent said the buyer's bank will want to see all the reports and cost estimates (The Irish Times, 2020).

Insuring a house that has been underpinned

Expect to be asked. One policy won't pay for subsidence, heave or landslip damage if any part of the building suffered it before, unless that was disclosed to and accepted by the insurer (Aviva). Keep the engineer's report, design and sign-off: they're what a new insurer, a buyer or a bank will ask for.

If you disagree with the insurer

Complain to the insurer first. If you're not satisfied with their response, the Financial Services and Pensions Ombudsman is an independent, free service that deals with complaints about financial service providers, including insurers (FSPO).

Questions people ask