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.
Possible Causes
Water damage claims are becoming more severe and these costs are expected to increase further due to the following trends:
- Homeowners have more plumbed in appliances in their homes
- New homes include more bathrooms and laundries on upper levels
- Open plan kitchen and living areas are becoming increasingly popular
Are you protected?
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.
This content is brought to you by Chubb Insurance Australia Limited (“Chubb”) as a convenience to readers and is not intended to constitute advice (professional or otherwise) or recommendations upon which a reader may rely. Any references to insurance cover are general in nature only and may not suit your particular circumstances. Chubb does not take into account your personal objectives, financial situation or needs and any insurance cover referred to is subject to the terms, conditions and exclusions set out in the relevant policy wording. Please obtain and read carefully the relevant insurance policy before deciding to acquire any insurance product. A policy wording can be obtained at www.chubb.com/au, through your broker or by contacting any of the Chubb offices. Chubb makes no warranty or guarantee about the accuracy, completeness, or adequacy of the content. Readers relying on any content do so at their own risk. It is the responsibility of the reader to evaluate the quality and accuracy of the content. Reference in this content (if any) to any specific commercial product, process, or service, and links from this content to other third party websites, do not constitute or imply an endorsement or recommendation by Chubb and shall not be used for advertising or service/product endorsement purposes. ©2020 Chubb Insurance Australia Limited ABN: 23 001 642 020 AFSL: 239687. Chubb®, its logos, and Chubb.Insured.SM are protected trademarks of Chubb.
Tips & Resources
We help you stay ahead and informed with these helpful tips and tricks
