Many homeowners are unaware that internal water damage poses 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 lies in wait – water damage.
Unfortunately, these statistics are likely to keep increasing for the following reasons.
Flexi hoses are the primary cause of internal flooding in homes.
This plastic tube, covered in a steel braid, is attached to many household items, including washing machines, dishwashers, refrigerators, sinks and toilets.
When water is turned on and off, the pressure inside the hose causes deterioration as the inner rubber tube expands and contracts. The hotter the water, the faster the hoses wear out.
Flexi hoses are cheap, but neglecting to maintain them can be costly.
A burst flexi hose can release the equivalent of a suburban swimming pool through a property in 24 hours if no one is home.
Check regularly for any fraying, rust, corrosion, kinking or twisting on flexi hoses.
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, such as hallways, and to expensive infrastructure, including mains electricity supplies 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.
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 alerted the owners that other flexi hoses may have expired and should have been replaced.
Flexi hoses vary in their quality and expected lifespan. Ideally, they 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.
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.
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
This article is bought to you by SCA (WA) sponsor Body Corporate Brokers (BCB)
