Leaking waterpipe causing subsidence?

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I have bought a house last month and this evening I noticed water polling around a damaged drain at the back on the house. Closer inspection has revealed a slow leak from a water supply pipe. Looks like it's been leaking for years. It looks like soil has been washed away underneath the house as I can see a void. I think insurance won't cover the repair of the leak itself, but would standard building insurance cover the damage and possible repair underneath the house????
 

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I have bought a house last month and this evening I noticed water polling around a damaged drain at the back on the house. Closer inspection has revealed a slow leak from a water supply pipe. Looks like it's been leaking for years. It looks like soil has been washed away underneath the house as I can see a void. I think insurance won't cover the repair of the leak itself, but would standard building insurance cover the damage and possible repair underneath the house????
What has subsided?
 
The extension has a crack in the wall that the survey deemed not structural. Yet it is right above the drain and broken water pipe. I can see that the leaking water has been flowing backwards underneath the house and there is a visible good leading back under the wall. I can only assume that a large amount of soil underneath the extension has already been washed away.
 

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