Escape of Water Insurance Claims

Escape of water insurance claims are requests made by policyholders to their insurer for financial compensation after water has leaked or escaped from a fixed water or heating installation inside a property. Common causes include burst or leaking pipes, failed tanks and cylinders, leaking boilers and radiators, faulty washing machines and dishwashers, and failed seals around showers, baths and sinks. These claims usually fall under the buildings and contents sections of a home or business insurance policy.

Escape of water is one of the most common types of property insurance claim in the UK. The damage is often hidden at first: water can travel under floors and behind walls, soak into plaster, insulation and timber, and lead to damp, mould and electrical problems if it is not found and dried quickly. Making an escape of water claim allows property owners to trace the leak, dry the property properly and repair the damage without bearing the full financial burden themselves.

What Do Escape of Water Insurance Claims Typically Cover?

• Water Damage Repairs: Repairs to ceilings, walls, floors, kitchens, bathrooms and decoration damaged by the escaping water.
• Trace and Access: The cost of finding a hidden leak and gaining access to it, such as lifting floors or opening walls, and making good afterwards (where the policy includes trace and access cover).
• Drying and Dehumidifying: Professional drying, moisture monitoring and dehumidification so the property is fully dry before repairs begin, to prevent mould and further damage.
• Contents Replacement: Compensation for carpets, furniture, electrical items and other belongings damaged by water.
• Alternative Accommodation: Temporary housing costs if the property is uninhabitable while it is dried and repaired.
• Business Interruption: For commercial policies, compensation for loss of income and extra operating costs while the premises are being repaired.

How the Claims Process Works

• Leak Is Discovered: Water is found escaping, or signs such as stains, damp patches, bubbling paint or a drop in boiler pressure appear.
• Stop the Water: The policyholder turns off the water supply at the stopcock and makes the area safe, keeping electrics away from the water.
• Damage Documentation: Photographs and notes are taken of the damage and the source of the leak, and any damaged items and repair invoices are kept.
• Insurer is Contacted: The insurer is notified as soon as possible and the claim is registered.
• Assessment and Inspection: The insurer may appoint a loss adjuster, leak detection specialist or drying company to find the cause and assess the extent of the damage.
• Drying and Repairs: Once the property has been confirmed as dry, approved repairs and reinstatement work are carried out.
• Settlement: The insurer pays for the repairs or reimburses the costs based on the policy’s terms and conditions.

Important Considerations

• Higher Excess: Many policies apply a higher excess to escape of water claims than to other claims, so check the amount in your policy schedule.
• Gradual Leaks and Wear and Tear: Damage caused by a slow leak over a long period, or by worn grout and seals, is often excluded. Acting quickly when a leak is noticed matters.
• The Source of the Leak: Policies usually cover the damage the water causes, but not always the cost of repairing the pipe, appliance or fitting that failed.
• Unoccupied Properties: Cover can be restricted if a property has been left empty for longer than the period stated in the policy, particularly in winter when pipes can freeze.
• Proper Drying: Repairs carried out before a property is fully dry can trap moisture and lead to mould and further damage, which may affect the claim.

Escape of water claims can be complex, with hidden damage, disputes over the cause of the leak and policy exclusions to work through. An IPLA member can manage the claim on your behalf, from tracing and drying through to agreeing the settlement with your insurer, so you receive the full amount you are entitled to under your policy.