Internal water damage in Australian homes is now a very common property damage-related claim and is costlier than all other home risks, including fire and burglary1.
Added to this increase in frequency, water damage claims are also getting larger.
In Australia, Chubb’s Water Damage Insight report reveals the average claim from water damage has increased by 72% in the past five years, from A$17,627 in 2014 to A$30,361 in 2018.
Water damage claims are becoming more severe and these costs are expected to increase further due to the following trends:
Despite water damage being one of the most common property damage-related claims, homeowners are not as well informed when it comes to preventing water-related losses.
In addition to sufficient insurance coverage, homeowners should consider installing water shut-off devices to protect their homes from incidents of water leaks.
There are actually two main components to water leak detection devices: firstly, water sensors that detect a water leak in its infancy and, secondly, water shut-off devices which automatically shut off the water supply reducing the amount of water which can escape to cause damage.
Each component can operate independently, however with the two components combined, the likelihood of any water leak can be significantly reduced.
Given the significant cost of water damage, it is simply smart for homeowners to start looking into protection against this threat to their homes.
1 Chubb Insurance comparing cost of claims from various causes over the last six years (2013 - 2018) excluding natural disaster catastrophe events.
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