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 Lowest Risk: 1 in 167 chance Highest Risk: 1 in 3 chance
Top 3 States with the Highest Claim Risk for Non-Weather Water Statewide Average Claim Probability Lowest Claim Probability Highest Claim Probability Florida 1 in 9 1 in 20 1 in 3 California 1 in 10 1 in 15 1 in 4 Maryland 1 in 10 1 in 24 1 in 5 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 Average Claim Probability Lowest Claim Probability Highest Claim Probability Miami-Dade County, FL 1 in 5 1 in 18 1 in 3 Orange County, CA 1 in 8 1 in 15 1 in 4 Montgomery County, MD 1 in 8 1 in 14 1 in 5 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. ©2019 Location, Inc. All rights reserved.

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 Appliance leaks and failures Plumbing and pipe failures Fixture leaks and failures Ruptured connecting hoses

Non-Weather Water Costs Add Up  = $8.2 Billion*  $6,695  $1,354- $44,686 Percent of US property insurance losses from plumbing and appliance leaks and failures annually The average plumbing or appliance leak and failure-related claim Non-weather water claim severity range by location

*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. ©2019 Location, Inc. All rights reserved.

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.