With most insurance policies covering damage caused to a site or property by ‘escape of water’, homeowners, landlords, and site managers alike could be forgiven for thinking that there’s always a net to fall back on, should an incident occur and they need financial support. 

In reality, according to the association of British Insurers (ABI), almost one in five claims – for domestic cases alone – are unsuccessful. ABI attributed this disparity to the lack of awareness when it comes to policy criteria, and revealed that a significant proportion of rejected claims are a result of customers’ own neglect.

When you consider that insurers are paying out approximately £1.8 million each day in such instances, it comes as no surprise that strict criteria is set in place.

So, what can policy holders do to protect their pounds? 

It’s clear that prevention is better than the cure when it comes to water leaks. But much as they are commonplace in most domestic and commercial buildings, locating them is rarely a straightforward task.

That’s why, to detect abnormalities in flow levels before they worsen and mitigate the risks of surplus escape, it’s best practice to install an intuitive leak detection system at the point of entry to your property or site.

With high-level accuracy and a variety and customisable functionality to suit varying requirements – such as different volume of usage and times of occupancy – they alert users of any suspected changes to typical activity to offer peace of mind from water leaks.

But it’s important that policy holders know what they’ve signed up for, too.

Because, while some agreements will cover the cost of damage caused directly as a results of leakage, some lenders refuse to be liable for investigative work – meaning digging up floors, ripping away plaster board, conducting thermal imaging camera surveys, and pressure testing pipework to locate the source of a problem could all fall to the responsibility of the property or site owner. 

Not only this, but some may also be reluctant to pay out for part replacements as a consequence of investigative activity, such as replacing floorboard and carpets, or touching up paintwork.

Water damage caused by an unexpected pipe burst is usually covered as standard, although it’s always worth exploring exclusions and limitations. For example, some lenders may only cover a certain extent of damage, depth of flooding, or even location within your site or property. In some instances, it may be possible to add new parameters to your policy – although this is not always the case.

With so many loopholes and conditions to counter in the event of surplus water escape, this is why understanding the terms of your policy carries such weight – not least in today’s climate of intense economic uncertainty – and why preventing the risk of a leak with state-of-the-art leak detection technology is a crucial solution, rather than a nice-to-have, for homeowners, landlords, and facility managers today. 

If you would to remove the headache of water leak detection, browse our extensive range of products, today.

Or, if you’d like to enquire about the topic discussed in this article with a specialist, please don’t hesitate to get in touch with a member of the Waterguard team.