EXPERT Subsidence · Further Knowledge · E6 of 6
Important: voluntary status
Both ABI agreements are voluntary under Competition Law Compliance — adoption at each member's discretion. They are not statute. But they are widely followed.
1. Domestic Subsidence "Change of Insurer" Agreement
Introduced 1 January 2000. Applies when:
- Change of insurer (NOT change of property ownership)
- A subsidence/heave/landslip event causes damage
| Date of Notification (from current insurer's policy inception) | Outcome |
|---|---|
| ≤ 8 weeks | Previous insurer handles entire claim No contribution from current |
| > 8 weeks but < 1 year | Insurer notified handles Cost split 50:50 between previous + current Handling insurer keeps the other informed of material developments + reserve Contributions paid within 21 days with full docs (apportioned VAT invoices) No interim contributions < £5,000 |
| ≥ 1 year | Current insurer handles entire claim No contribution from previous |
2. Domestic Subsidence Tree Root Claims Agreement — Third-Party Liability
Introduced 1 October 1997. For subsidence damage caused wholly or partly by tree root encroachment from a domestic owner/tenant/occupier:
- Buildings/contents insurer of the damaged property handles + meets the claim per their own policy cover
- Insurer of the responsible domestic property is NOT pursued for recovery, regardless of attribution share
- Exception — if damage recurs because no reasonable preventative measures were taken by the liable party, the agreement does NOT apply to subsequent claims
- No bearing on uninsured loss claims pursued by the insured against the liable domestic party (e.g. for excess, distress, inconvenience)
⚠️ When to read the full wording
Both agreements are short and updated periodically. Always refer to the current ABI wording before relying on them in a dispute.
Decision flow for handlers
- Has there been a change of insurer? If no, skip Agreement 1.
- What's the date-of-notification interval from the new insurer's inception?
- Apply the matrix above for handling responsibility and contribution.
- Is there a domestic third-party tree implicated? If yes, Agreement 2 closes off recovery against that domestic insurer (subject to the four points above).
- Always check uninsured loss cover for the PH separately.
Source: Subsidence Handbook 4th Edition, Chapter 13 — ABI Subsidence Agreements.