Chubb Corporation is one of the contributors to this information. A Chubb executive was on my PBS television show several years ago as an insurance expert. I believe this is probably accurate information. Chubb a premier insurance company and one of the largest in the world.
Water and Mold Damage Statistics
- Water damage and freezing pipes made up over 21% of ALL insurance claims in 2003.*
- On average, individual water damage claims cost insurers $4,925 in 2002. **
- A 1/8-inch crack in a pipe can release up to 250 gallons of water a day.
- A small water pipe leak inside a wall or under a slab may go undetected for months.
- Damp wood and sheetrock provide excellent conditions for toxic mold.
- Water damage and mold damage cost insurers $2.5 billion nationally in 2002.*
- Almost 90% of copper pinhole leaks occur on horizontal runs of pipe.
- Recent improvements in water quality contribute to accelerated corrosion and failure of copper pipes.
- Some insurers now refuse to cover mold claims under existing policies.
- Lack of early detection of water leaks can reduce your ability to collect from your insurance company. Insurance claims for water damage are frequently denied if the cause of the damage has existed for more than 24 hours.
- 37% of all homeowners claim they have experienced losses due to water damage.***
* Insurance Information Institute
** Insurance Information Network of California
*** The Chubb Corporation
