According to a recent Wall Street Journal article, “American Homeowners and Their Insurers Face a Flooding Crisis From Within,” written by Leslie Scism, homeowners in the United States are increasingly filing more water damage claims due to internal flooding. In fact, based on the latest data analytics from Verisk Analytics, between 2013 and 2017, 1 in 50 homeowners filed a water-damage claim each year. 

The increase in overall claims is partly due to aging homes, which have valves and pipes that have become stressed over the years. Modern homeowners increasingly install more appliances, creating precarious multiple points of connection in the plumbing system, which raises the risk of connection failure. Homeowners are also breaking from tradition and putting their homes at greater risk by placing water-using appliances such as washing machines on the second floor of the home.

High-end homes are particularly vulnerable to high-dollar water damage claims, as their size increases the potential areas for damage, and the materials and furnishings are more expensive to replace. They also often contain more water-using appliances than the average home. The more connections into the plumbing system, the greater the risk of failure.

Damages caused by a gradual leak will likely not be covered by your insurance company, so it is important to be vigilant about maintenance for water-using appliances in your home.  Don’t delay in assessing whether your home is properly protected against the potential of water-damage claims.  Shafer Insurance Agency can advise you on the best way to manage these risks in your home, so you can avoid becoming another homeowner who has to file a water-damage claim.

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