Quick Tip: Leaky Pipes- Why Didn’t Insurance Pay Anything Towards the Claim?

By February 5, 2018 April 15th, 2018 Blog, Business Protection, Quick Tips

When it comes to insurance, there is a difference between a burst pipe and a leaking pipe. Insurance will not always cover a leaking pipe, or the damage it causes. Sarah explains more.

Insurance typically covers damage resulting from a covered cause of loss, such as a fire or burst pipe. When a pipe leaks however, it may not necessarily cause damage. For example, if you had to rip up a unit to get to a leaking pipe, the damage done to access the pipe will not be covered by the insurance.

The cost to repair the pipe would also not be covered, as it was not damaged due to a covered cause of loss, such as a fire. More than likely, the pipe was leaking because it was deteriorated, which would be a maintenance issue. Wear and tear such as this is a common exclusion in an insurance policy.

It’s also important to note that if the pipe had been leaking for 14 days or longer, insurance would not pay anything towards the claim. The leak must have been sudden and accidental for insurance to apply. In this specific situation, it would be considered a maintenance issue, therefore not covered by insurance.

For more information, please contact us.

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