According to the Association of British Insurers (ABI), the insurance industry pays out £2.5m every day to customers for escape of water home insurance claims. That includes problems caused by burst and frozen pipes, or leaks caused by old and corroded pipes.
But the pipe bursting and the damage caused by the leaking water are only part of the story. Fixing the leak can involve stripping back wall covering, lifting flooring. Home insurance policies vary and may cover all, some or none of these elements, and it is estimated by the insurance industry that around a third of all household insurance policies do not cover all of the work involved with household water damage.
Finding and getting to a leak can prove difficult and expensive. Household insurance may include ‘trace and access’ cover to pay for the cost
of this. But if there is no ‘trace and access’ cover, an insurer may not cover the cost of the leak, the home owner could find themselves facing a large bill to make and then repair access holes in walls or floors.ABI | abi.org.uk