Aspen Claims Service

Study: Water Damage Claims Surging

 Monday, March 11, 2019

 Insurance Business

A new report has found that the number of water damage claims resulting from leaks have surged in recent years, as other types of claims have declined in frequency. The report, prepared by Verisk Analytics’ ISO unit, found that one in 50 homeowners filed a water damage claim each year, between 2013 and 2017. This 2.05% frequency rate is a noticeable increase from the 1.44% frequency rate annually for the period between 2005 and 2009. Industry figures have also highlighted that the increase in water damage claims occurred even as other types of claims (such as for fire) have declined in frequency. ISO additionally found that, in 2017, the total amount of insurance payouts for water damage was $13 billion. The average claim cost about $10,000.