Why are More Homes Flooding ?

More American homes are flooding from the inside. Old pipes and valves, worn out hoses on second-story washing machines and faulty connections for a proliferation of water-using appliances are causing a surge in increasingly expensive home damage and flooding reported to insurers. The increase has occurred even as many other types of claims-including fire-have declined in frequency. One in fifty homeowners filed a water-damage claim each year between 2013 and 2017, the latest data analyzed by Verisk Analytics' ISO insurance-analytics unit. It crunches industry data on a five-year rolling basis. The 2.05% frequency rate is up from 1.44% annually between 2005 and 2009. The bottom line is a $13 billion water-damage bill for companies that insured homes in 2017. Te cost of the average about $10,000. Wildfires, hurricanes, and tornadoes get time in the media each year, but the reality is that the largest risk that the everyday consumer has is a water claim. To study the issue, Texas-based USAA Insurance Company has 6,000 policyholders testing water-detecting sensors in a multi-year pilot project. This type of experimentation, where devices are installed to spot potential water damage, has grown into one of the biggest innovations focused on the insurance sector. Participants in the USAA's pilot project have placed sensors near the water heater, washing machine and under kitchen and bathroom sinks. In this pilot, homeowners who neglect an obvious slow leak for months before serious damage occurs could end up in a possible coverage dispute. Industry professionals say that there are a number of factors driving the costs higher. The rise in overall claims is due partly to aging homes. A post-war building boom in the 1950's gave way to other booms. This means that much of America lives in houses that are decades old and become likelier candidates for plumbing failures. It is worth noting that homes built during the real-estate bubble of the early 2000's care also producing claims as they often have far more appliances with water connections.