Daily Insurance Industry News
 
 
Daily Insurance Industry News
Tuesday 17th of July 2018
September 28, 2011

Water damage dampens profits

by Gill Montia

Story link: Water damage dampens profits

Water damage is costing UK commercial property owners millions, according to recent research from Cadogan Keelan Westall.

The property insurance specialist can reveal that nearly 50% of claims made on commercial buildings and their contents result from escape of water, at an estimated cost to property owners £185 million a year.

In fact, commercial non-weather-related escape of water claims cost £0.5 million a day in 2010, industry figures show, with the average commercial water damage claim for 2011 coming in at just over £2,900.

Common causes include burst pipes, roof leaks, frozen pipes and blocked drains, with empty commercial properties understandably more vulnerable than occupied ones.

Cadogan Keelan’s head of business, Brett Sainty, comments: “Water damage is both costly and disruptive … our data also shows that it disrupts business for weeks, contributing to a loss of revenue and profit.”

Mr Sainty gives the example of a recent claim for a large water leak in the basement of an office building in the City of London, with four floors affected and the claim running into many thousands of pounds.

However, Cadogan Keelan has been working with a provider that specialises in preventing water damage by installing a device that shuts off the supply in the event of a major leak, and the insurer is urging all commercial property owners to consider this approach to reducing water-damage risk.

 

News posted:



Related stories to Water damage dampens profits: