The Seven Most Common Causes of Property Water Damage Insurance Claims

Water damage is a leading cause of property loss, with various common sources contributing to significant damage and costly repairs. Understanding these sources can help in prevention and mitigation.

Flooding is not covered by a standard insurance policy. It requires an additional endorsement added to the property insurance policy.

1. Plumbing Failures:

Burst pipes, leaking faucets, and aging plumbing systems are frequent culprits. High water pressure and unnoticed leaks can exacerbate these issues.

2. Appliance Malfunctions:

Faulty appliances such as water heaters, washing machines, and dishwashers can lead to substantial water damage if they fail or leak.

3. Roof Leaks:

Damaged or deteriorating roofs allow water to seep into the home, affecting ceilings, walls, basements and insulation.

4. Natural Disasters:

Severe weather events like heavy rains, hurricanes, and floods can introduce large amounts of water into properties, leading to extensive damage.

5. Clogged Gutters and Downspouts:

When gutters are blocked, water overflows and accumulates around the foundation, potentially causing basement flooding and structural issues.

6. Sump Pump Failures:

A malfunctioning sump pump can result in basement flooding, especially during heavy rainfall.

7. HVAC System Issues:

Improper maintenance of heating, ventilation, and air conditioning systems can lead to water leaks and moisture buildup.

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Impact and Statistics:

• Water damage ranks as the second most common home insurance claim, surpassed only by wind and hail (Insurance Information Institute, 2022).
• Approximately 14,000 U.S. residents file a water damage claim each day, equating to about 1 in 60 insured homes annually (Insurance Information Institute, 2022).
• The average cost of a water damage insurance claim is $10,849.

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Water Damage Preventative Measures:

• Regular Inspections: Periodically check plumbing, appliances, and roofing for signs of wear or leaks.
• Maintenance: Keep gutters clean, maintain appliances, and service HVAC systems regularly.
• Installations: Consider installing water leak detection devices and ensure sump pumps are functioning properly.