New data released by the Association of British Insurers reveals that the average claim for water damage has risen from £1,500 in 2013 to £2,500 today.
Reporting on the information, the Daily Mail says that the increases in claim amounts are due to:
- extra pipework being needed for the increasingly complicated requirements of homes;
- many families requiring a downstairs toilet (adding to the complexity of the pipework);
- the fashion for having “hidden” pipework which means if there is a leak, it can go undetected for days and potentially cause massive damage;
- the trend for wooden flooring making repair bills expensive.
Laura Hughes, Senior Policy Adviser for property insurance at the ABI, said: “The industry is seeing a noticeable increase in the cost of claims caused by water leaks inside homes, which ... we’re investigating.
“There are likely to be a number of reasons, including that there is now more water flowing around homes because of an increase in the number of appliances, bathrooms and underfloor heating.
“There is also an increase in more expensive fixtures and fittings ... which cost more to repair and replace.”
Industry insiders also said shoddy workmanship can cause problems, with hobbyists attempting to install their own plumbing.
According to research firm Consumer Intelligence, home insurance prices rose 7% in the 12 months to July, hitting an average £13 – the fastest rate for three years. The bulk of this was due to the rise in Insurance Premium Tax to 12% from 10% which took effect from June 1st, as well as the earlier rise in October last year.