WATER DAMAGE Features Preventing leaks in flats
Escape of water is a particular problem in a blocks of flats, accounting for up to 50% of the annual total claims reported each year by leaseholders. On the following pages we look in detail at the issues surrounding water damage and talk to two companies that specialise in leak detection
According to the Association of British Insurers, escape of water resulted in £860 million in claims pay-outs in 2011 and 2012. This is a
particular issue for flat owners because not only their property but their neighbours’ flats can be badly damaged by leaking water; and it is easy for water to soak into the structural components of blocks, potentially causing hidden problems that may only be discovered months or even years later. Where water damage claims are common across particular blocks, insurers will commonly apply increased excesses/deductibles, higher premiums or may even withdraw cover altogether.
Perhaps surprisingly, the number of claims made for damage caused by escape of water is higher in newer properties (pro-rata). A block of flats built after 1990 is nearly twice as likely as an older property to report this type
of damage, according to flat insurer Deacon’s analysis of claims. So what can flat owners do to minimise the risks and keep insurance at affordable levels?
Deacon director Nigel Feast says: “Regular maintenance checks are a good idea. You’d be amazed how quickly a small drip or pinhole in a hose can turn into a four-figure claim to repair a kitchen and the ceiling of the flat below. Yes, the insurance may cover it, but that won’t prevent the distress or disruption that inevitably follows water damage within a home. And, if there are repeated incidences, you will find that either premiums or excesses will be increased”. Like other brokers, Deacon’s ability to minimise penalties from insurers on behalf of clients is limited. “While we do our best, our ability to do this is limited if the same building continues to suffer this kind of damage.” Nigel explains. His advice is to make sure
your building is checked regularly to help prevent water-related accidents occurring (see our checklist on page 37 for more on how to prevent leaks).
To look in detail at the problems caused for flat owners by leaks and to consider the insurance industry’s response to these issues Flat Living has set up a water damage forum In collaboration with two leading insurance brokers – CHUResidentsline and Midway. The first forum was held in May and was attended by a range of property experts including representatives from the insurance sector as well as block managers and those working in companies specializing in leak detection and prevention.
Key findings from the forum included:
Insurers believe the problem is worsening; plastic plumbing and timber frame
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