Many homeowners don’t know that internal water damage is a more common and costly risk than fire and burglary*.
While we generally protect our property against theft and fire with locking devices, alarm systems and smoke detectors, a far greater potential problem is lying in wait with water damage.
That sinking feeling
- The average water damage claim increased by 72% between 2014-2018, from $17,627 to $30,361*.
- Water damage makes up 34% of an insurer’s property-related claims.
Unfortunately, these statistics are likely to keep increasing for the following reasons.
- Homes now contain more plumbed-in appliances.
- New homes are designed with more bathrooms and laundries on upper levels.
- Open-plan layouts don’t offer any resistance to overflowing water.
The biggest culprit – flexi hoses
Flexi hoses may look harmless, but they’re the primary cause of internal flooding in homes.
This simple plastic tube covered in a steel braid is attached to many household items, from washing machines and dishwashers to refrigerators, kitchen sinks and toilets.
Most flexi-hoses burst due to the breakdown of the external braiding material caused by rust and corrosion, or the effects of twisting, kinking or stretching.
Flexi hoses are cheap, but neglecting to maintain one can be costly.
Flexi hoses fast facts
Flexi hoses were introduced over 20 years ago and vary in cost and quality.
There was no certification for flexi hoses before 2011, so old ones are potentially “ticking time bombs”.
When water is turned on and off, the pressure inside the hose causes deterioration as the inner rubber tube expands and contracts. And the hotter the water, the faster the hoses wear out.
It’s recommended that a qualified and licensed plumber replaces certified flexi hoses at least every 10 years and checks for damage more regularly.
Incorrect installation can cause issues if the hose is stretched or kinked, for example, or if it’s positioned close to household chemicals that could corrode the hose prematurely.
A burst flexi hose left undiscovered can release the equivalent of a suburban swimming pool through a property in 24 hours if no one is home.
Check regularly to see if you can see any fraying, rust, corrosion, kinking or twisting on your flexi-hoses.
Damage greater than the eye can see
Homeowners can be left with damaged carpets, walls and furniture…not to mention the mould. In severe cases, this can mean moving out while repairs are carried out – an additional cost and inconvenience.
In strata properties, a burst flexi hose can cause damage to common areas like hallways and expensive infrastructure such as mains electricity supply and lifts, as well as possible damage to neighbouring units.
If the property has tenants, an extended period of disruption could cause a tenant to move out permanently. Or the property could be uninhabitable, leading to a short-term loss of rental income.
Don’t compromise your cover
All strata insurance policies have wear and tear Exclusions that state the policy won’t cover losses due to normal deterioration over time. The definition of wear and tear can differ by insurer, so always read the Product Disclosure Statement to understand how it applies to your strata scheme.
If the damage is significant and the property becomes uninhabitable, occupants may have to relocate while repairs are carried out. This may take some time, so if the property is tenanted, the tenants may choose to vacate permanently.
Although insurance generally covers loss of rent for the owner when tenants vacate, and temporary accommodation when an owner-occupier has to live in alternate accommodation, the disruption might be avoided if flexi hoses are checked regularly.
Unfortunately, insurers have declined many claims over the years due to the wear and tear exclusion.
If a flexi hose has clear signs of corrosion or fraying and isn’t repaired, an insurer may reduce or decline a claim for the water damage because you didn’t carry out regular checks or replace the hose when you noticed the damage.
Insurers may also decline claims if there has been a previous claim for a failed flexi hose at the same property. This should have made the owners aware that other flexi hoses may be past their expiration date and should have been replaced.
Regular maintenance is cheaper than damage repairs
Flexi hoses vary in their quality and expected lifespan. Some may be expected to last 10 years, while others may not make five years. There’s no way to know what type of flexi hose you have, as they all look similar.
Ideally, flexi hoses should be checked bi-annually, particularly after the 5-year mark, when the risk of bursting increases significantly.
Doing a few simple checks could save you time and money.
- Look for signs of ageing – Check for corrosion, rust marks, fraying and kinks. If the flexi hose is reaching its warranty period or shows any damage, replace it immediately.
- Ensure proper installation – Buy a good-quality flexi hose and ask a licensed plumber to install it.
- Check the warranty – Check the collar of the flexi hose for the warranty period, and if it’s expired or close to it, replace it immediately.
- Practice safe storage – Avoid storing chemicals near flexi hoses as they can cause premature damage before the expiry date.
Switch off the water supply at the mains and turn off the hot water system when a property is vacant for long periods. Then, if there’s leakage or bursting, it will be cold water, which will result in less damage.
Peace of mind with the right insurance cover
Having adequate insurance cover against water damage is essential for both the strata building and the owner’s contents.
BCB can help you find the right insurance policy, to ensure it covers accidental loss or damage to contents from events, including the escape of water.
*Chubb Insight Report: Get Smart About Water Leaks, July 2019
