Leak Detection Insurance Requirements
Recovering from the damage caused by burst and leaking water pipes is a traumatic and expensive experience. Treasured items can never be replaced, lost time cannot be restored, and associated costs can spiral.
This can hopefully be avoided by implementing preventative measures at a fraction of the price.
As our winters become more extreme and water leaks from burst pipes are increasingly common, insurers are turning to Waterguard’s range of leak detection and prevention equipment, to mitigate the risks surrounding an escape of water claim.
The problem has escalated so rapidly, that the Association of British Insurers (ABI) is calling on insurers to prioritise reversing the rising cost of escape of water claims.
His call comes as latest ABI figures show no let-up in what is the most expensive claim for domestic property insurers.
Latest ABI figures:
- In the first nine months of 2017, domestic escape of water claims cost £483 million, rising 1% on the same period in 2016 and up 24% on the first nine months of 2014.
- Escape of water claims make up the majority of domestic claims at 30% with insurers paying out £1.8 million for it every day in 2018.*
- In the last three years the average cost of these claims has risen by 31% to £2,638.
As well as being a specialist partner with Aviva Insurance, we work with many risk management consultants and underwriters as they campaign to highlight the importance of the reduction of escape of water claims. We also share knowledge around leak detection and prevention.
It might sound surprising, but the cost of fitting a Waterguard leak prevention system is often less than the insurer’s excess, in the event of a claim. Many underwriters are now insisting on evidence of water leak prevention measures being in place before offering home and contents cover – as well as lower premiums for those who comply.
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