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Insurance companies facing rising water damage claims

A new report shows that leaks are becoming increasingly problematic for homeowners and insurers.

A new Verisk Analytics report from its ISO unit has found that insurance companies are taking an increasing number of water damage claims. At the same time, other forms of claim have been falling in frequency.

The report determined that one in 50 homeowners insurance policyholders file a leak claim each year.

Water damage claims affect one in every 50 homeowners insurance policyholders every year, according to the research. The study involved data from 2013 through 2017. This represents a frequency rate of 2.05 percent. It represents a significant increase in this type of home insurance claim when compared to the annual figure from 2005 through 2009, which was 1.44 percent.

This data further underscores existing insurance industry data showing that claims involving water damage have been happening more often. This, at the same time certain other types of home insurance claims, such as fire, have been dropping, said an Insurance Business America article.