Water leak claims increase by over 30% in Q1 2021
The number of claims made for water leaks in the home were up by more than 30% in the first quarter of 2021 compared to the same period the year before.
According to a collaboration of leading insurance trading bodies, claims made for water leaks in Q1 of the year, equated to £175m.
The trade organisation alliance, which includes the Association of British Insurers (ABI), the Forum of Insurance Lawyers (Foil), the British Insurers Brokers’ Association (BIBA), London and International Insurance Brokers Association (LIIBA), and Lloyd’s Market Association (LMA), has been formed to raise awareness about managing the risks involving water leaks in the home.
The trade bodies are stipulating what people can do to reduce the threat of water escaping at a property.
Laurence Besemer, chief executive of Foil, commented on the damage a water leak can cause: “The cost to consumers of domestic escape of water claims needs to be driven down quickly and for that reason, we are urging improved education on the measures homeowners can take, as well as improved standards and competencies to reduce substandard workmanship and improve awareness of what fraudulent claims look like.”
As well as the introduction of the trade body alliance to bring greater awareness to the issue of water leaks, insurers are calling for clear standards to be implemented across the plumbing industry. The standards would ensure that plumbers tasked with fixing water escape issues are adequately insured to do so and only use appropriate and high-quality materials.
The insurance body alliance recommends that everyone knows where the stopcock is in their home and that stopcocks are tested regularly to prevent them from seizing up. The trade collaboration also proposes that policyholders fit a device that detects for water leaks, and that only professionals install new appliances that require plumbing.
Other measures recommended by the cross-industry alliance is the regular checking of pipes and sealants of taps, sinks, baths and showers.
It is also recommended that the water supply is turned off if a property is left unoccupied for any length of time.
The rise in water leak claims underscores the urgent need for property owners to have the right insurance in place that would cover them if such an event should occur.
Nelson Policies at Lloyd’s provides Residential Property Owners insurance that will cover issues such as water leaks. Get in contact with the team to learn more about the cover we can provide.Back to Blog
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