Non-weather water claims: is your portfolio at risk?
On average, 1 in 15 homeowners will experience damage that results in a non-weather water claim during the standard five year policy lifecycle. Pinpointing which policy is at greatest and least risk for a claim is tricky. The probability of a claim varies dramatically across the country, and even from location to location over a short distance.
|The Risky Business|
of Non-Weather Water Claims
1 in 15
|National average number of homeowners who will experience damage that results in a non-weather water claim during the standard five year policy lifecycle.|
National Claims Risk Variance Range for Non-Weather Water
Top 3 States with the Highest Claim Risk for Non-Weather Water Statewide
Even within the highest risk states, claims risk varies: often from even less than the national average, to 2-3 times as likely as the statewide claim probability.
Top Counties (within the Top 3 States) with the Highest Claim Risk for Non-Weather Water Statewide
Even within the highest risk county in each of the highest risk states, the claims risk varies: sometimes from 2-3 times as likely, down to less likely than the national average.
Probability of a claim is during the standard policy life expectancy of 5 years. Probabilities are based on claims per 1,000 earned exposures. Scores are validated with 3.5 million earned exposures.
The cost to insurers
Pipes burst, valves fail, and appliances malfunction. These are just some of the non-weather water events that can lead to costly damage and claims. Far from rare, these instances, and the cost to insurers, add up.
Some of the Common Culprits of Non-Weather Water Damage
Non-Weather Water Costs Add Up
*Source: Location, Inc.’s analysis of insurance carrier loss data, corroborated by third-party industry data from the Insurance Journal and the Insurance Information Institute. Losses = $41.2B net of Reinsurance.
How can insurers avoid non-weather water claims and losses?
By knowing the risks for any particular location during underwriting, you can write non-weather water coverage more profitably. See the likelihood of a non-weather water claim for any address with our exclusive claim probability tool.