Data from the Association of British Insurers latest property insurance tracker shows that home insurers paid out £72m during the second quarter of this year and that the average subsidence claim hit a record of £20,000. The average settlement is up by £2,000 on the same quarter last year.

Dry weather increases the risk of ground movement and associated property damage. The ABI says its figures come on the back of the warmest spring on record in England and Wales and the third warmest across the UK as a whole.

Claims on home insurance were up across the board. In Q2 the average payout for a home insurance claim broke £7,000 for the first time. The ABI says it was only in Q2 last year that it topped £6,000.

Average claims costs for extreme weather events are also on the rise and claims for flooding storms and burst pipes exceeded £8,500 in Q2 this year, up by 12% on the same period last year.

Chris Bose, director of general insurance policy at the ABI, said: "The growing cost of subsidence and weather-related damage is a reminder of why improving the resilience of our homes matters. While insurers continue to be there for customers when they need them most – providing financial protection and support – reducing future losses demands a coordinated effort from homeowners, industry and government.

“Simple steps can make a real difference. For new homes, building deep foundations can reduce the risk of subsidence. For older properties, maintaining nearby trees and drains and fixing leaking pipes can prevent problems from developing. As extreme weather becomes more common, protecting homes will be increasingly important to help communities better withstand its impacts.”

The ABI says the average premium for combined building and contents home insurance was £383 in Q2, up slightly on the previous quarter but still down by 2% on the same period last year.