Water damage is among the most costly and commonly reported commercial building insurance claims. In October 2022, ipropertymanagement reported that water damage costs up to $20 billion annually in household water damage.
It's not difficult to imagine that figure climbing even further when you're talking about commercial structures, which are usually much larger than your average home and can often involve more complicated plumbing systems.
Without commercial building insurance coverage, the high water damage restoration costs would come out of your pocket.
But what are the average water damage insurance claims for commercial buildings? Read on to find out!
Please be aware that many of the statistics cited in this article are based on common household leaks. As you can imagine, these numbers can climb quickly in commercial spaces due to the potential impact on other tenants and the cost of sensitive equipment!
How much does a water damage insurance claim cost?
Insurance claims for water damage are $11,098 on average, so it's easy to assume claims for commercial buildings are even greater. The exact figure will always vary depending on the cause and type of water damage.
For example, if floods cause water damage in your commercial building, expect the total claim to be significant. The National Flood Insurance Program (NFIP) states the average claim payment for repairs following a flood is $52,000.
Claims for water damage caused by burst pipes or simple plumbing issues are likely to be lower, although still unpleasant.
It is also important to note that water damage insurance companies cover some water leak situations but not others. For instance, damage caused by a pipe suddenly bursting should be covered. However, most insurance policies do not cover flood damage from "rising water."
Types of water damage covered by commercial building insurance
Generally, water leak damage that is considered "accidental or sudden," such as burst pipes, is covered.
Water leak damage covered by insurance for commercial buildings may be similar to that for homes, although the figures may vary.
Insurance policies usually offer some amount of coverage for the following :
Burst pipes: The average home insurance claim for water leak damage caused by frozen or burst pipes can range from $10,000 to $20,000.
Leaking roof: This can result from a tree that falls on your roof or a storm. As a homeowner, you can claim up to $2,000 to remove those fallen trees. You can file a separate insurance claim for water damage restoration.
Accidental water leaks: These may include an appliance leak, such as a leaking dishwasher or washing machine.
Here are some common situations that are not often covered by standard home insurance policies:
Flood damage caused by heavy rain, overflowing rivers, storm surges, tsunamis, and hurricanes. You can consider a flood insurance claim if you wish to be covered for this situation.
Water leak damage due to negligence or lack of maintenance
Water leak damage from earth movements, such as mudslides, earthquakes, or earthquakes. You will be required to have a separate earthquake insurance cover.
How to Avoid Water Leak Damage in Commercial Buildings
Water leak damage can be a severe problem in your building and may lead to costly insurance coverage. However, installing water leak sensors in the right places in your building can help avoid water leak damage and its impact on insurance coverage.
Water leak sensors can detect even the most negligible leak and alert you within seconds. This allows you to respond to the water leak in a timely fashion.
So, water leak sensors are a convenient, effective, and affordable method of preventing water leak damage from occurring.
While many water leak sensors are available on the market, you should choose one that suits your needs. At Perceptive Things®, we are fans of preventing damage before it occurs.
Our Droplet Solo™, Droplet Duo™, and Droplet Pro™ water leak sensors can turn your commercial space into a "smart building" instantly.
If you want to prevent water leak damage in your multi-family unit or commercial building, our water leak sensors will give you real-time and accurate insights into your building's structural integrity whenever a water leak occurs or may potentially occur.
For more information about these water leak sensors, visit our products page!
Droplet Solo™
The Droplet Solo™ is the first water leak sensor we ever designed. We released its newest version in 2023. Unlike the first version, the latest Droplet Solo™ features a drop-and-go installation and a sleeker design.
It also has an audible buzzer alert system, ensuring that you and your tenants are alerted promptly whenever a water leak occurs.
Moreover, its impressive IP-67 rating means that Droplet Solo™ can withstand immersion in water up to 100 meters deep or for up to 30 minutes.
Droplet Duo™
The Droplet Duo™ is a dual-probe water leak sensor; each probe has its own wireless alerting system. With it, you are essentially buying and installing two water leak smart sensors at the cost of one!
The good thing about this water leak sensor is that it comes preconfigured for your commercial building. This makes it easy for self-installation and immediate use.
The Droplet Duo™ is powered by a long-lasting lithium battery that can supply power for four to five years. This makes our durable and robust leak sensor a wise and ideal investment for all commercial building owners or managers looking to avoid water leak damage.
Droplet Pro™
This industrial-grade water leak sensor is designed for reliable water detection even in harsh environments.
Droplet Pro™ is designed with a 3-meter rope that can detect moisture and water leaks along its length. You can even customize the rope's length up to 100 meters. This enables you to monitor and detect water leaks in large areas using only one smart device.
The sensor's body features internal magnets, making mounting on beams or iron surfaces easy. You do not need additional hardware or tools to install the Droplet Pro™!
Final Thoughts on the Average Cost of Water Damage Insurance Claims
By knowing the average cost of water damage insurance claims for your commercial building, you can estimate your coverage needs better and save for what may not be covered.
However, preventing water leak damage in your commercial building can go a long way to save you significant expenses, including insurance costs, in the long run.
At Perceptive Things®, we provide innovative solutions to assist you in staying ahead of water leak damage in your commercial building.
If you need commercial building water damage prevention assistance, please feel free to contact us at contact@perceptivethings.com. Our team of experts will be happy to assist you!
Have you ever claimed a water damage insurance cover on your commercial building? We would love to know how much it was via the comments section below!
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