Property Disasters: Is It Possible To Predict And Prevent?
Some experts analyzed 10 years of property insurance claims.
The result of the analysis was quite overwhelming.
The analysis helps homeowners, property managers, and renters.
They can use it to predict and prevent property disasters.
Overview of the analysis
- The number one claim is the escape of water. It accounts for about 34 percent of all claims.
- The escape of water and site of Victorian water mains in London are associated.
- Majority of the claims for the escape of water occurs in winter/autumn. The claims’ lowest period is April.
- The chance of the escape of water is lower in the summer. However, claims for accidental damage are higher during this period.
- The analysis highlights an increase in certain trends. These trends include fire, malicious damage, break-ins, and subsidence.
Details of the analysis
An insurance firm conducted a comprehensive analysis recently.
Property claims within 10 years are the basis of the analysis.
This analysis considered all claims that insurance companies paid.
The payments were from 2008 and 2018.
The analysis says the major cause of insurance claim is the escape of water.
It accounts for as much as 34% of the claims.
Nevertheless, certain factors played pivotal roles in the frequency and type of claims.
The factors are the location of the home and the period of the year.
Understanding of these factors assists in predicting and preventing property disasters.
The tenants and property owners can gain from this knowledge.
A few points on leaky London
Foremost, it is important to understand what escape of water means.
It occurs when water gets into a property through the mains water supply.
It also leads to damages of the property.
A burst pipe is a good example.
Escape of water is responsible for most of the property insurance claims.
From 2008 to 2018, it accounted for 34% of the claims.
Fascinatingly, a greater volume of London users has an effect.
It influences a higher concentration of claims in the city.
However, the incidents do not only affect the Thames.
They also affect areas around London’s Victorian water mains.
These include Victorian plumbing lines in Kensington, Brixton, and Shepherd’s Bush.
In these areas, 45 cases of the escape of water were reported in 2017 and 2018.
Trends in different seasons
The types of claims were assessed against the time they occurred.
The assessment provided a notable seasonal trend.
This trend could be very important to house owners.
There is an increase in the claims in the winter/autumn.
This is mainly because lots of pipes were burst or frozen.
Nonetheless, there are least claims in April.
December 2010 was known to be the coldest December for a century.
The number of frosts witnessed was the highest in the last 50 years.
Consequently, insurance firms had to deal with the resulting claims in 2011.
Some companies paid hundreds of thousands of pounds in claims.
Another trend is the noticeable increase in fire claims in January.
This could be because renters did not take care of power supplies.
The negligence is common during the festive period.
Landlords can encourage the tenants to pay attention to these supplies.
This is an important tip for landlords who want to prevent fire outbreak.
January has very high attempted break-ins.
However, the incidence reduces as the summer draws closer.
By September, the attempted break-ins increase again.
A possible reason could be that people feel that homes are more vulnerable during the winter.
This is because of shorter daylight hours.
The reduction in break-ins in the summer supports this claim.
Also, criminals may want to steal Christmas gifts.
During the summer, there are also more cases of accidental damage.
This might be because more individuals stay at home as kids are on breaks.
Trends on claim types
Without considering seasonality, there are increases and declines in claims incidents.
Fascinatingly, since 2011, theft has been on the decline.
This could be because property owners pay more attention to inventories.
There is a decline in claims for accidental damage.
Claims for underground service also reduce.
The underground service includes drains, cables, and pipes.
Otherwise, break-ins, malicious damage, fire, and subsidence are increasing.
However, claims for storm damage and escape of water remain the same.
Basically, a few western countries experience more storms than the UK.
However, any significant UK storms could greatly affect homes annually.
As a consequence, the claim for damage from the storm is the second highest.
Roof damage accounts for 51.2% of the pay-outs for storm incidents.
Unexpected eventualities can occur.
However, property insurance can safeguard homeowners.
The analysis indicates that homeowners can prevent property disasters.
The tenants and property managers should play their parts too.
They can achieve this by maintaining their properties.
It is also important for them to take precautionary measures.
By ensuring the properties stay safe, landlords can enjoy low premiums.
What are the implications of these things for homeowners?
- Thames Water has set in place 2,300 km of new plastic pipework. This is in Central and North London. However, they can still do a lot to improve the situation. Property investors in London may desire to know more about plumbing infrastructure. So, this infrastructure in this area must improve.
- Across the UK, most claims are due to the escape of water. This is usually as a result of damaged or cracked pipes. Therefore, house owners can repair or replace these items to avoid any claims.
- Homeowners need to implement proper security measures. This is necessary during the winter when break-ins are high.
- They can prevent some fires. This can be through switching off electrical gadgets when not in use. Renters have a significant role to play here.
- Homeowners and tenants should get weather forecasts. They should also repair damaged or cracked fences, roofs, etc. This should come before storms that can damage the properties.
Reneza understands what it takes to prevent property disasters.
Therefore, you can hire our experts to help you.
We offer an array of world-class real estate solutions.