Construction whitepaper - Water damage - QBE European Operations

Water Damage

Construction sites need to address water damage risk as costs and delays increase. The consequences of water escaping from building services on a construction site can be catastrophic, resulting in major property damage both on and off site, as well as long delays. However, adherence to best practices and greater use of water management devices could significantly reduce the impact.

With modern construction methods and increasing property values, water damage has become one of the biggest causes of construction insurance claims in recent years. It is now the second largest cause of loss in the QBE construction portfolio, marginally behind fire.

Escaping water is not a new problem, but the cost of water damage claims has been increasing. In fact, the construction insurance industry recently experienced some

of the largest ever water damage claims – water escaping from a failed joint at a high rise block in London recently generated a £25m loss for insurers, for example.

Construction sites need to address water damage risk as costs and delays increase. The consequences of water escaping from building services on a construction site can be catastrophic, resulting in major property damage both on and off site, as well as long delays. However, adherence to best practices and greater use of water management devices could significantly reduce the impact.

Escaping water is not a new problem, but the cost of water damage claims has been increasing. In fact, the construction insurance industry recently experienced some of the largest ever water damage claims – water escaping from a failed joint at a high rise block in London recently generated a £25m loss for insurers, for example.