For many, owning a home is a strategic financial decision. Given the financial benefits at play, many invest significantly in their homes, often making it their largest investment. But, it all can be put at risk from the single most common property-related claim: water. Whether stemming from the weather or from inside the home — be it from water-connected devices like washing machines, dishwashers and refrigerator ice makers — even the smallest of leaks can cause big headaches for homeowners.
How big? Beyond the frequency, the Insurance Information Institute found the average water claim runs around $10,000. Such losses also are getting more expensive, with incidents over $500,000 doubling and those over $1 million tripling since 2015. In addition, many people end up out of their homes for months due to required repairs, according to Chubb data. In other words, water is simultaneously a common, costly and stress-inducing risk homeowners can’t overlook.
Fortunately for financial advisors, helping clients protect their property (and their financial investments) is simple. It starts with understanding how water impacts their homes year-round.
Summer Travel Woes Consider how many of your clients travel over the summer. Now ask how many leave relevant home protection information with caretakers. Per a recent Chubb study, just 30% and 17% of homeowners leave appropriate water leak and flood information with caretakers, respectively.
Why the concern? Data from Paul Davis, a home remediation company, suggests that even a small tear in an ice maker line can result in more than 17,000 gallons of spilled water in a week — enough to fill a swimming pool. Imagine coming home to that!
Fall Landscaping Oversights According to the same Chubb study, roughly one-in-three homeowners (30%) believe improvements to their home’s exterior best impacts its value (the top home-related concern identified). The cooler autumn months are the perfect time to make these enhancements, but many common garden improvements invite new water risks.