The Risk of Water Damage from Neighbours’ Leaks

Do your neighbours have contents insurance? If not, a leak or burst pipe in a neighbouring or upstairs flat could end up costing you thousands of pounds. To help solve this problem, there are leak detection systems on the market that could be worth considering.

The Association of British Insurers’ Estimates

The Association of British Insurers (ABI) estimates that a burst pipe can release enough water to fill 48 bathtubs. Imagine that amount of water flooding through the ceiling of a flat, then consider the damage caused as a result. Sadly, this scenario isn't uncommon. Between 2014 and 2016, the total cost of 'escape of water' claims rose by 24%. And during the first nine months of 2017, claims of this nature cost insurers £483 million. Even a small amount of water damage can lead to expensive repairs, such as redecoration or ceiling replacement.

Property Managers’ Challenges with Leaks

The ABI attributes the increase in claims to a variety of factors: the demand for high-spec kitchens with integrated plumbed-in appliances, more bathrooms in new properties, the rising use of push-fit pipes, and, in some cases, poorly installed pipes. Whatever the cause, for property managers and residents, a serious leak in a residential block is a major headache. Residents often clash over water damage and insurance claims, which average around £25,000 for a burst pipe. Adding to this challenge, 1 in 5 UK homeowners lacks contents insurance, which means property managers frequently find themselves involved in disputes. Many insurers now introduce additional excesses for water damage, making leaks a significant problem for everyone involved.

Leak Detection Specialist Solutions

Last month, Aqualeak, a leak detection specialist, released a new technical guide explaining how leak detection systems work and the components required. The guide includes easy-to-understand technical illustrations that show how these systems are installed. Another company, LeakSafe, has a helpful list of frequently asked questions on its website for anyone wondering whether these systems are worth the investment.

Cost and Installation Considerations

Obviously, the installation of leak detection systems comes with a cost, and retrofitting them is not possible in all existing developments. However, if you live in a block that has previously had issues with leaking pipes and you’ve had to pay for the damages, it could be worth considering. Perhaps you could raise the issue with your property manager or freeholder at your next resident’s meeting.

Potential Impact on Insurance Premiums

The really good news for flat owners, apart from the obvious benefit of preventing water damage, is that leak detection systems can have a positive impact on your block's insurance premiums. This could lead to lower premiums for everyone in the building.