Increased Risk of Burst Pipe Claims Predicted for This Winter

During the coldest months of the year, the likelihood of pipes freezing and subsequently bursting in British homes and businesses significantly increases. This risk is further exacerbated by the trend of property owners reducing their heating usage to cut costs, a practice which can lead to frozen water in pipes. This frozen water expands and under pressure the pipes burst.

In light of the steep rise in energy prices last year, many individuals opted to keep their heating off for extended periods. Recent studies indicate a continuation of this trend, with even more property owners planning to limit their heating use this year. While there are no guarantees, we at Lycetts strongly recommend maintaining a minimum heating temperature of at least 10°C to prevent burst pipes. Additionally, it’s important to be aware that some insurance policies, for certain properties, may have a heating temperature condition written into the policy. The condition may stipulate setting the heating temperature to a certain level for cover to apply.

The Cost of Water Damage

The Association of British Insurers (ABI) reported that escape of water claims were a major concern for both residential and commercial properties in 2022. The total claims amounted to approximately £987 million, marking a 15% increase from 2021. This equates to an average of around £2.7 million in water damage claims per day. With the winter season upon us, it is pertinent to note that last year, several households faced the distress of being displaced during Christmas due to water damage. Our aim is to help our clients avoid such upsetting situations.

Guidance for Handling Burst Pipe Incidents

In the event of a burst pipe, immediate action is crucial:

1. Initial Response: Shut off the water at the stopcock and contact a plumber without delay.
2. Documentation: Have the plumber identify and repair or isolate the source of the leak, taking photos of the damaged part. Also, capture images of the overall damage. Insurers like to see close up photographs plus wider angled photos showing the context of the damage.
3. Detailed Report: Request an itemised invoice from the plumber, detailing the cause of the damage, materials, and labour costs. Include within this the cost for locating and accessing the source of the problem. Note that the repair cost of the pipe might be excluded in certain cases, such as gradual deterioration due to age and Trace and Access costs are usually only covered where actual property damage has occurred.
4. Report the Claim: Contact Lycetts to report the claim, providing all relevant information, photographs, client reference (if known) or policy number, date of loss/discovery, and property address. This can be done via email at ukclaims@lycetts.co.uk or by calling 0191 232 1151 to reach the claims team during office hours. If preferred you can contact your usual main contact at Lycetts to discuss initially. You will receive confirmation from the claims team, along with a claims reference, contact details for your dedicated claims handler and a note of the next steps. For assistance outside of office hours, please refer to your policy documents.
5. Estimates for Repairs: Obtain two estimates for the repair work and submit them to Lycetts for authorisation from the insurer. Be aware that proceeding without authorisation may result in the insurer not covering the full costs.