Water damage is one of the most common causes of home insurance claims. According to ISO, Water damage claims are the second largest frequent insurance claim, following wind and hail damage. The percentage of claims due to water damage is also increasing, while other causes of damage have stayed fairly consistent or even decreased. It's no wonder people have a lot of questions about water damage and what is covered on home insurance, and why things, like "gradual damage" are not covered. Things get even more complicated when we look at the exceptions.
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Water damage can originate by different sources such as a broken dishwasher hose, a washing machine overflow, a dishwasher leakage, broken/leaking pipes, flood waters and clogged toilets. According to the Environmental Protection Agency, 13.7% of all water used in the home today can be attributed to plumbing leaks.[3] On average that is approximately 10,000 gallons of water per year wasted by leaks for each US home. A tiny, 1/8-inch crack in a pipe can release up to 250 gallons of water a day.[4] According to Claims Magazine in August 2000, broken water pipes ranked second to hurricanes in terms of both the number of homes damaged and the amount of claims (on average $50,000 per insurance claim[citation needed]) costs in the US.[5] Experts suggest that homeowners inspect and replace worn pipe fittings and hose connections to all household appliances that use water at least once a year. This includes washing machines, dishwashers, kitchen sinks and bathroom lavatories, refrigerator icemakers, water softeners and humidifiers. A few US companies offer whole-house leak protection systems utilizing flow-based technologies. A number of insurance companies offer policy holders reduced rates for installing a whole-house leak protection system.
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