Insurance claims on property water damage increase 72%: Chubb Insurance

There has been a substantial increase in the number and size of property-related claims by Australian homeowners due to internal water damage, according to a new report published by Chubb Insurance.

Chubb estimates that the average claim from water damage in Australia has increased by 72% in the past five years.

According to the Chubb Insight Report, Get Smart about Water Leaks, the average claim from water damage received by Chubb in Australia has increased from A$17,627 in 2014 to A$30,361 in 2018.

In addition, water damage as a percentage of actual household claims is also increasing with 34% of all Chubb claims being due to water damage, compared to 16% for fire and 9% for burglary.

“Australians are increasingly more aware of the damage caused by floods and fire, yet few are prepared for the threat from water damage to their homes,” explains Michelle O’Dowd, Underwriting Manager, Australia & New Zealand, Personal Lines, Chubb.

O’Dowd says that while Australian homeowners commonly focus on protecting their homes against fire and theft through locking devices, alarms systems and smoke detectors, there is far less focus on protecting homes from water damage.

While all Australian homeowners may experience water leaks, Chubb’s research also revealed that those living in Western Australia and Victoria are particularly susceptible.

In fact, homeowners in these states are 20% more likely to make a water damage claim under their Chubb Masterpiece policy than any other homeowner.

“Protecting your home against water damage is as simple as installing one central system to monitor the flow of water across your home or turning off the main water supply at the shut off valve – especially if you’re away for a week or more,” says O’Dowd.

Chubb is the world's largest publicly traded property and casualty insurance company with operations in 54 countries.