Water Damage Statistics and Information (2024)
Water damage consistently ranks among the most common causes of home insurance claims. As your home ages and the climate shifts, the risk of water damage increases. Anything from coastal flooding to corroded pipes can leave water in places it doesnโt belong, and the longer that water lingers, the costlier the damage will be to fix.
Homeowners insurance covers many types of water damage. However, for your home insurance to kick in, the damage must be caused by a sudden and accidental issue inside your home, such as a burst pipe. Flooding and gradual damage are typically excluded. In either case, itโs important to understand the signs and sources of water damage before it affects your home. Read on to learn the latest water damage statistics, plus how to identify and prevent this costly issue.
Number of Annual Water Damage Claims
Homeowners are highly likely to experience water damage at some point in their lives. According to the Insurance Information Institute (III), water damage affects around 14,000 people in the United States every single day.
Flood Damage Statistics
Several types of water damage can occur, but one of the most catastrophic is flood damage. Note that not all homeowners insurance policies cover flood damage. III statistics indicate that 43% of people mistakenly think home insurance covers flood damage.
FloodDefenders, a nonpartisan nonprofit organization that advocates for local flood prevention measures, has compiled statistics on the prevalence and cost of flooding in the United States. Since 1980, flooding in the United States has caused $1 trillion in damages. America has experienced an urban flooding event once every two to three days for the past 25 years, with 99% of U.S. counties having been impacted by a flood event between 1996 and 2019.
Types of Water Damage
Water damage falls into one of three categories, depending on the cause and severity of the issue:
What Does Water Damage Look Like?
Water damage is often immediately evident. A flash flood or overflowing toilet, for instance, is hard to miss. However, smaller issues can go undetected and cause damage over several weeks or months. Be on the lookout for warning signs that indicate a hidden problem. Water damage can look like any of the following:
- Water stains: Even clean water can cause stains as it soaks through your walls, ceiling, or floor. Water stains typically appear as areas of beige, yellow, or brownish discoloration.
- Humidity: Some of the water leaking into your home will naturally be absorbed into the air, causing increased humidity. You might also notice more condensation or mugginess.
- Mold or mildew: If the issue persists long enough, mold or mildew can begin to grow in affected areas. According to the Federal Emergency Management Agency (FEMA), mold can begin growing on a damp surface within 24โ48 hours.
- Dripping: In the case of a hidden leak, you may hear a dripping sound with no visible source. A large or prolonged leak could also result in water dripping through your ceiling or light fixtures.
- Peeling paint: Excess humidity or water soaking through your walls can cause paint to peel or bubble. You might notice similar issues with wallpaper.
- Hairline cracks: Thin cracks in your homeโs walls, ceiling, or foundation may be caused by harmless temperature fluctuations or the house settling. However, they can sometimes be a sign of serious water damage.
If your home has a hidden leak, you might also notice a higher-than-usual water bill or increased water usage. According to the Environmental Protection Agency (EPA), the average home leaks around 10,000 gallons of water every year. Even small leaks can waste huge amounts of waterโ10% of households waste more than 90 gallons of water daily through minor leaks and drips.
Your utility company might even reach out to suggest that you look for a leaky pipe, dripping faucet, or perpetually running toilet if their records show constant water usage at your home. Fixing household water leaks and updating plumbing can save homeowners about 10% on their water bills.
Top Causes of Water Damage
Although flooding and storm damage are the most frightening causes of water damage, they are not the most common. The vast majority of water damage is more subtle, with a source closer to home. Here are a few common causes of water damage:
- AC leak or condensation
- Appliance leak
- Blocked drain
- Clogged gutters
- Corroded pipes
- Dripping faucet or showerhead
- Faulty HVAC system
- Faulty plumbing
- Faulty sprinklers
- Frozen pipes
- Leaky roof
- Leaky water heater
- Leaky water supply line
- Overflowed tub or toilet
- Sewage backup
- Sump pump failure
How To Prevent Water Damage
Our Conclusion
A single incident of water damage can cause homeowners or insurance companies thousands of dollars. Of the 5.8% of insured homes that filed a claim from 2016 to 2020, 1.6% of them experienced a loss related to water damage or freezing each year. According to III statistics, only damage from wind and hail is more likely.
Fortunately, homeowners can take several steps to prevent or mitigate water damage. Start by learning what water damage looks like and how to turn off your water in an emergency. Then, invest in regular home maintenance, including gutter cleaning and regular HVAC inspections. Pay attention to water damage warning signs and address small issues promptly before they grow into more expensive problems.
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