Tap water damage: risks, consequences and insurance - tips from financial experts

Tap water damage: risks, consequences and insurance - tips from financial experts

According to a report by amp.infranken.de, water damage is one of the largest cost factors for insurance. In 2020, insurance companies paid more than three billion euros for pipe water damage. This is because water damage can affect not only your own home, but also the structure of the building and the neighbors' homes. Given these knock-on effects, it is important to exercise great care and caution when handling water, especially with household appliances such as washing machines, hot water heaters and dishwashers.

There are three insurance lines that can be affected by water damage: household contents insurance, private liability insurance or building insurance. It is important to know which insurance covers which damage so that you can act correctly in an emergency. A quick response is important in the event of water damage, as is careful and proper documentation for the insurance company.

Water protection systems such as Aquastop or Aquasecure help to prevent major water damage. These systems detect when water is leaking and then immediately stop the flow. When purchasing new devices, you should ensure that they are equipped with such water protection systems. If damage does occur, you need to act quickly to avoid further consequential damage.

The case law regarding grossly negligent behavior in the operation of washing machines and the liability of insurance companies has changed over time. However, caution should be exercised and the rules for using household appliances should be followed in order to avoid insurance problems in the event of damage. Despite improvements in safety technology, there is still a risk of water damage in homes. Therefore, prevention and proactive action continue to be of great importance.