Escape of water claims in the UK and the independent loss assessor

Escape of water versus flood

Escape of water covers water released from a fixed installation inside the building: a burst pipe in a cold snap, a failed washing machine hose, a leaking radiator valve or a split cold water tank in the loft. Flood, by contrast, is water coming in from outside. The two often sit in different sections of the policy with different excesses, and escape of water excesses have tended to rise in recent years.

Policies typically exclude damage caused by gradual leaks, worn grout and sealant around showers and baths, and wear and tear of the system itself. They usually pay for the resulting damage, not the cost of fixing the failed pipe or appliance.

Trace and access cover

Finding a hidden leak can mean lifting floors or breaking into walls. Many policies include trace and access cover, which pays for locating the leak and making good the damage caused in doing so, often up to a stated limit. Some only offer it under buildings cover or as an add-on, so check before calling in a leak detection firm.

First actions after discovering a leak

Move valuable contents out of harm's way, open windows and start removing standing water. Do not commission major drying or repair work before the insurer agrees it, except where urgent to prevent further damage.

• Turn off the water at the stopcock and, if safe, the electrics in affected areas
• Photograph the source and the damage before moving anything
• Call a plumber and keep the invoice, plus the failed part if possible
• Report the claim to your insurer or broker without delay
• If you live in a flat, warn the managing agent and neighbours below

Flats, leaseholders and block policies

In blocks of flats, the building is usually insured by the freeholder or management company under a block policy, while each leaseholder insures contents. A leak from your flat into the one below can involve the block insurer, two contents insurers and possibly a liability claim. The lease often sets out who must insure what and who pays the excess.

An independent loss assessor can be particularly useful here, coordinating several parties, making sure the block policy responds for building elements, and pursuing contents and alternative accommodation claims for the leaseholder.

Proving sudden damage rather than a slow leak

The biggest single area of dispute is whether damage arose suddenly or gradually. Insurers may point to rotten timber, long-standing staining or mould as evidence of a leak that ran for months. The assessor's role is to examine the evidence, sometimes with a damp specialist or surveyor, and argue the timeline.

Useful material includes the plumber's report describing the failure, the failed part itself, water bills showing a sudden rise in consumption, and witness statements from neighbours who noticed the leak.

Drying, matching and contents

Once the leak is fixed, insurers usually arrange drying, sometimes with dehumidifiers running for weeks. Arguments often follow about matching: if one part of a kitchen floor or bathroom suite is ruined, should the whole set be replaced to restore a uniform appearance? Some policies limit cover for matching items, so read the wording. Contents may be settled on a new-for-old basis, but the insurer may offer vouchers or replacement through its own suppliers.

Working with the insurer's adjuster

On smaller claims, the insurer's in-house team handles the file. For larger losses, it appoints a loss adjuster. Your assessor can attend visits, agree the scope of works and a contents schedule, and make sure alternative accommodation is arranged if the property becomes unusable during repairs.

Keep a simple log of each contact, with dates, names and what was agreed. If a drying company declares the property dry, ask for the final moisture readings in writing before reinstatement begins, as premature repairs over damp substrates are a frequent cause of later complaints.

When the claim is declined or delayed

Write to the insurer explaining why you disagree, attaching evidence. It generally has eight weeks to issue a final response. If you remain unhappy, you can usually refer the complaint to the Financial Ombudsman Service within six months of that response. The Ombudsman frequently considers escape of water disputes, especially those turning on gradual damage and poor workmanship.

For leaseholders, disputes about the block insurer's handling may involve the freeholder or managing agent; keep them informed in writing.

Escape of water claims hinge on quick action and good proof of when and how the leak happened. To understand what an assessor would cost on such a claim, see the water damage fee guide on expertdassure.com.