Escape of water claims at charitable premises can cause just as much of a problem as a household water claim, if not more. This is due to the potential for causing significant damage and potentially a business interruption claim being required too. If water starts escaping from a mains fuelled system outside the charities working hours, it can mean continue uninterrupted causing significant damage.

Knock on damage can involve rotten flooring, carpeting and walls. Infestation of insects that breed in pools of water on concrete floo5rs can be an issue and evidently, damage to electrics and the charities contents is likely in a major water escape.

According to some recent data from the Association of British Insurers (ABI), the number of commercial escape of water claims has risen over the last 15 years. In addition to this, between 2016 and 2019, the average cost of a commercial escape of water claim has risen from £4,167 to £5,349 which represents an increase of 22%. Some claims can be very excessive.

The causes for these claims are wide-ranging. Some examples of causes are faulty air conditioning systems to corroding pipes in some older buildings. Furthermore, should a property be unoccupied for a long period of time, this can in fact exacerbate any existing issue. This could result in any undetected leaks becoming more substantial which in turn will result in an increased claim amount.

What can you do?

It is therefore vital that any property owner who discovers a leak, contacts their insurer at the earliest opportunity to make them aware of the issue. This will allow the insurer the best chance in determining the cause of and assessing any damage caused. The reason why speed is of the essence is that if for example, there are multiple parties involved, the claim can be more complicated to manage. I.e. if the building is a block of flats.

In order to reduce the chance of water escaping in the first place, there are some key measures that you can put in place. These include:

• Arranging regular building inspections
• Checking the age, type and adequacy of plumbing and insulation
• Review business continuity plans regularly. It is essential that if a significant leak occurs, you and your team know the plan.
• Ensure that basement storage is off ground