BIBA technical update on fracking

The position is as follows (as confirmed by ABI):

If fracking did happen to cause seismic activity or subsidence which damaged a property, then there would be cover under the terms of a buildings insurance policy.

Damage as a result of earthquake, subsidence, heave and landslip are all covered as standard under household buildings insurance; subsidence heave and landslip is not always provided as standard cover under commercial policies

Insurers at present do not perceive there to be a risk of seismic activity that could cause damage to a property as a result of fracking;

We are not aware of any claims where seismic activity as a result of fracking has been mooted as a cause for damage;

As in all locations, a reported history of subsidence (or indeed earthquake or other perils) will be taken into account when offering and pricing insurance.