Home insurance is designed to cover the costs of unexpected damage. That means that gradual damage to your plumbing, such as rusting pipes or faulty fixtures usually isn't covered, because it could have been avoided with regular maintenance.
Under most insurance policies, a leaking or burst pipe and the associated damage will be covered. This can include leaking shower recesses, basins and pipes. If you discover that you have a leak, it is important to get urgent repairs carried out and to alert the insurer immediately.
“Water damage” refers to any type of physical damage caused to property that has come into direct contact with water. It can stem from natural disasters such as floods, hurricanes, tornadoes, or torrential downpours. Other causes of water damage in the home include leaky plumbing, burst pipes, or even a leaking roof.
If the water damage has been caused by a damaged appliance or pipe that is still leaking, you may need to contact a qualified plumber or relevant technician to repair it. It's worth speaking to your insurer before making any repairs. Your insurer may send someone to visit your home and assess and report on the damage.
Coverage for water damage depends on the situation and the source. If the damage is sudden, accidental, and comes from inside your home, you're typically protected with a standard homeowners insurance policy. However, if the water damage is caused by outside flooding or a neglected repair, you won't be covered.
Home contents insurance covers you against loss, theft or damage to your personal and home possessions. It can also cover you if you take items out of the home, on holiday, for example. The insurance covers your own possessions and those of close family members living with you.
Most buildings insurance policies include cover for damage to underground pipes, drains, cables and tanks (often called underground services). Policies generally only cover problems with pipes the policyholder is legally responsible for.
Termites and insect damage, bird or rodent damage, rust, rot, mold, and general wear and tear are not covered. Damage caused by smog or smoke from industrial or agricultural operations is also not covered. If something is poorly made or has a hidden defect, this is generally excluded and won't be covered.
It provides cover for damage caused by events like fires, storms and floods. Buildings insurance does not cover the items inside your house, like furniture, carpets, clothes, electronics and personal items. You'll need contents insurance to insure these.
Home insurance will usually cover as standard, leaks, such as a leaking shower, leaking radiators and appliance leaks. However, if water is leaking through because of age or condition then this can sometimes result in a refused claim.
Hidden Water Coverage
Simply put, it covers the cost to repair damage done by a water leak you can't see within the walls, floors, ceilings, cabinets, beneath the floors or behind or under a home appliance. A homeowners policy normally doesn't protect you from many types of water damage — including hidden water leaks.
If a flood or leak from a neighbouring flat causes damage in your home, then your landlord is likely to be responsible for repairing it. For example, if the water causes a ceiling in your home to collapse or plasterwork is damaged.
You should never admit any fault or even partial liability for what occurred. Often, the less you say, the better. Don't offer theories about the damage. All repair and replacement costs should be substantiated rather than based on your opinion.
Wind and hail are the most common reasons for homeowners insurance claims, accounting for 45.5% of claims filed in 2020. Other common claims include fire, water damage, theft and injury.
Home insurance claims may indeed end up increasing your premiums, but it's not possible to know in advance what your next quote will be. Generally, minor incidents, such as lost or damaged possessions, are less likely to lead to a jump in your premiums than a burglary or damage to the building's structure.
The 80/20 Rule generally requires insurance companies to spend at least 80% of the money they take in from premiums on health care costs and quality improvement activities. The other 20% can go to administrative, overhead, and marketing costs.
A pipe that suddenly bursts would be covered by most insurance but one that slowly leaks may not be. The only exception is hidden water damage. Many insurers offer limited water damage cover from a leaking internal water or waste disposal pipe that a homeowner could not have been expected to see.
This means that as a property owner; you're responsible for the maintenance and repair of the pipes that supply water to your property. This includes all the pipes that run inside your home and outside too. For example, if there's a leak on the property boundary, then that is the homeowner's responsibility.
You or your Loss Assessor will prepare a claim for any contents damaged as a result of the water leak. Regardless of whether the content damages are minimal or substantial, your claim must be as detailed as possible, including accurate replacement values for all affected items.
Infrared camera – You can also use an infrared camera to detect cold areas in a wall. The wettest areas of a wall will be the coldest and will show up as blue or purple on the camera. This is another device commonly used by plumbing professionals to detect water leaks inside walls.
If your roof or ceiling leaks due to a covered peril, the associated damage should be covered under your homeowners insurance policy. Most home insurance policies have an open perils claims basis, which means unless coverage is specifically excluded, then it is included.
Many property managers, business owners and landlords erroneously believe that their property insurance policies will cover all types of water damage. This is not true. Most commercial property insurance policies only cover sudden water damage, like pipe bursts. They rarely cover water damage caused by slow leaks.