Making a home insurance claim after a water leak probably isn’t at the top of your list of the most exciting things to do. Suffering water damage to your home can be a very stressful and testing time. Unfortunately these things do happen, and when they do it’s important to keep a few things in mind.

Whilst we can’t write an article that covers every possible scenario, we’ve created this article so that you can maximise your chances of a successful water leak insurance claim.

Water leak (also known as ‘escape of water’) insurance claims are one of the most common forms of home insurance claims. This is particularly true in the colder months of the year, when freezing temperatures place additional strain on water pipes, increasing the chances of cracks and leaks forming. We’ll cover the key steps you must take once you’ve discovered a leak, what you can and can’t claim for, what costs you’ll incur and some of the common pitfalls that home insurance claimants fall foul of.

You’ve discovered a water leak, what happens next?

Do you need to turn off the water?

Depending on the severity of the leak, you may need to turn off the water immediately. If in doubt, it is best to urge on the side of caution and turn off the water.

Do you need an emergency plumber?

If your water leak requires urgent attention and you can see the source of the leak then you may wish to call an emergency plumber, to prevent your leak from getting any worse. It is important to note that the many insurers will not cover the cost of repairing your water leak. So you may not be able to claim this expense back from your insurance company.

If you cannot see the source of the leak then you may need to engage with a water leak detection company, or Trace and Access company if your home insurance policy includes Trace and Access cover (see below).

Check your insurance policy documents

The most logical place to start is to find your insurance policy documents – those ones you’ve probably ‘stashed’ in a folder that’s rarely opened! Be sure to read through the terms and check any exclusions that are part of the policy. The vast majority of home insurance policies will cover water damage – but not all are equal! Check your documents and make sure you are aware of any limits of the policy, for example a maximum cover limit.

Trace and Access cover

One of the most common things to check for is Trace and Access cover. This is relevant if you don’t know the exact source of your leak. For example, you may have noticed a damp patch on your walls or ceiling, but you’ve yet to pinpoint the exact location of the leak. Before the leak can be repaired it must be located, verified and exposed. Having Trace and Access cover means that your insurer will reimburse the cost of employing a specialist to do this and repair the damage caused by this process (up to a maximum limit, depending on your policy).

If you do not have Trace and Access cover then you can still use a leak detection company to find the source of your leak, though you may not be able to recover the associated costs of locating the leak.

Is it worth claiming?

If your water leak is small and has caused very minimal damage, then it is wise to check the level of excess your policy requires you to pay. Cheaper policies tend to have higher levels of excess. This may influence your decision as to whether you do make claim, or just arrange and pay for the repair work yourself. You may also wish to consider the impact on your no claims bonus (amongst other factors).

Report your potential claim to your insurance company, immediately

A delay in reporting an incident is one of the most common reasons for an insurance company to reject or dispute a home insurance claim. This is even more true with water leak related claims – as the level of damage actually increases during this period of delay.

As a policy holder, you need to demonstrate that you’ve been proactive and reported the incident as soon as is reasonably possible. In addition you need to demonstrate that you have acted quickly to mitigate the damage caused to your home (for example turning off the water, or repairing the leak).

For example, noticing a damp patch on your ceiling and observing it for several weeks before reporting it, is a sure fire way to jeopardise your insurance claim. Check your policy documents and report the incident as quickly as possible.

Complete the claim form quickly

It’s not the most exciting thing you will ever do, but your insurer will probably require you to complete a claims form after you have reported the incident. These may be hard copy forms, or you may be able to do this on-line. Some insurers place a time limit as to how long a claimant has to complete the relevant documentation after they have reported the incident. So get this done quickly.

Evidence the incident and document your claim

Take the time to properly record and evidence the damage to your home. As your claim progresses it is easy to overlook key information, as the amount of paperwork and questions from your insurer mount up. Get a notepad and describe the damage to your home, when you first noticed it and any other information you think might be relevant. Supplement this with photographs and add to this journal as your claim progresses, documenting telephone calls with your insurer, filing emails and photographing the repair work done.

Obtaining quotes to repair the damage to your home

Once your insurance company is satisfied that you’ve completed the necessary paperwork, they will likely ask you to get quotations from up to three companies (sometimes more) to repair the damage to your home. Your insurance company may encourage you to use the cheapest company, but remember that you do can choose the company you wish (provided that their cost is not overly inflated).

Your insurance company may send a representative to assess the damage to your home. He or she is known as a loss adjuster and will be in charge of protecting the interests of the insurance company. They want to ensure that they are not overpaying for the repair to your home. The loss adjuster may try and negotiate a settlement figure with you.

Remember that your insurance policy will often only cover the cost to repair the damage caused by your water leak. It may not include the cost to locate the leak (unless you have Trace and Access cover) or the cost to repair the leak.

Commencing the repairs to your home

Once you and your insurance company have settled on a cost to repair the damage to your home, repair work can begin. As we’ve previously mentioned, be sure to document as much of the process as you can. And remember that your insurer is only covering the cost to repair the damage from this specific incident – repairing the affected area of your home to it’s previous condition.

What can’t you claim for?

What you can and can’t claim for will vary slightly between policies. However, here are the common things you cannot claim for as part of a water leak related home insurance claim:

  • Repairing your leak: The cost to actually repair your water leak (e.g. replace a faulty water pipe) often cannot be claimed for. As we describe below, you can sometimes only claim for the costs to repair the damage caused by the leak, not the repair of the leak itself.
  • Non related damage: Putting through an insurance claim is not an open door to try and repair other things within your home. Only things that have been damaged by the incident you have reported can be claimed for. You must be able to demonstrate that the incident directly caused the damage you wish to be repaired.
  • Your time in managing the claim: This may sound a little odd, but some people do try and claim back for the time it has taken them to manage their home insurance claim. Put simply this cannot be done under most circumstances.

Costs that you will likely incur

It is highly likely that you will incur some cost as part of the insurance claims process. Few if any insurance policies will cover all of the associated costs, and that’s not taking into account any excess payment or loss of no claims bonus. Here are a list of the costs you may incur as part of a water leak insurance claim:

  • Repairing the leak: Many insurance policies will not cover the cost of repairing the water leak. You must source and pay for this yourself. Your insurer may only covering the cost to repair the damage to your home caused by the leak.
  • Locating the leak: Often the source of your leak will not be clear. You may have to employ a water leak detection company to pinpoint the source of the leak. If you have Trace and Access included in your policy then your insurer will be likely to reimburse you for this expense. Typical costs here are between £400 and £600 ex VAT.
  • Excess payments: The vast majority of insurance policies include an excess payment in the case of a claim. Typically, cheaper policies will command higher excess payments. A claim may also impact future premiums and no claims bonuses.

Common pitfalls

Approximately 20% of insurance claims are either disputed or completely rejected. This section covers some of the common reasons why. In short, as a claimant you need to demonstrate that you have done everything that is reasonably possible to either prevent an incident, or minimise the damage caused by an incident.

Not reporting the incident quickly enough

The longer a water leak is left, the more damage it causes. Even in the case of a slow leak, you must report it to your insurer as quickly as possible. Leaving the leak unchecked for days, weeks, months or even years demonstrates that, as a policy holder you have not done everything reasonably possible to minimise the damage to your home.

Not completing the paperwork quickly enough

Some insurers insist that claims forms are completed within a certain time frame. If you miss this time, expect difficulties with your claim.

Neglecting your home

You need to demonstrate that you have taken reasonable steps to prevent an incident from occurring. For example you may run into difficulties if you have not maintained the seal around your bath (or shower). If water then leaks through this seal and damages your home, your insurer could argue that the incident was caused by you neglecting to properly maintain your home.

Some common sense must be applied here. For example you are not obliged to check your bath seal every week. However checking your bath seal every few months for any obvious signs of a break in the seal, may be prudent.

Another example of this is keeping your roof in a good state of repair. This is particularly true if you have a flat roof – these are known to commonly result in leakages, as water does not effectively drain away. If you have a flat roof your insurance company may require you to have an approved inspector assess your roof at regular intervals.

Having insufficient cover

Sometimes it is tempting to go for that cheaper home insurance policy! Be careful however, as limits can be rather low and exceptions can be plentiful. You may also be limited to the number of claims you can make over a period of time, or the total value that you can claim for within a certain time frame.

‘Wear and tear’

As a general rule you cannot claim off your insurer for any general wear and tear suffered by your home. For example you cannot claim for the repair or maintenance of windows, roof tiles, drainage systems or the wearing out of white goods. Insurance claims must relate to a specific incident.

Conclusion

The world of home insurance can be confusing. What’s more, it’s not very exciting! However, following basic common sense principles is usually enough to either prevent an incident in the first place, or to quickly get an insurance claim processed. In a nutshell you should:

  • Choose an insurance policy with the level of cover you require – not just the cheapest policy
  • Keep your home in good repair and report any incidents quickly to your insurance company
  • Only try and claim for damage that has been caused by an incident
  • Evidence any incident and the related claim