Is my water damage Sudden or Hidden Gradual damage?
Gradual water damage claims are not always straightforward.
Home insurance protects you from sudden damage like a burst water pipe. But gradual damage over time generally isn’t covered. There’s an exception to this. Most house insurance policies in New Zealand have a extension for Hidden Gradual Water Damage.
However, there’s certain conditions that need to be met to make a claim for this cover.
Key takeaways
- House insurance protects against sudden damage such as a burst water pipe, while gradual damage over time is generally not covered unless it qualifies for the Hidden Gradual Water Damage extension.
- To qualify as hidden gradual water damage, the damage needs to be hidden and caused by an internal water pipe or tank.
- The source of the water must be a tank, hot water cylinder, or water or waste pipe.
- Damage from visible leaks, or leaks that don’t come from a pipe or tank, is unlikely to qualify for hidden gradual damage cover.
- initio house insurance includes $3,000 of hidden gradual water damage cover, with the standard policy excess deducted from the claim.
- The resulting water damage can be covered, but the cost of repairing the faulty pipe, equipment or other cause of the leak isn’t covered.
- If you’re unsure how the damage occurred, initio recommends getting a repair quote from a tradesperson and asking them to include their opinion on the cause of the damage.
At a glance
| Type of water damage | What it means | Example from the article |
|---|---|---|
| Sudden water damage | Damage that happens suddenly | A burst water pipe |
| Hidden gradual water damage | Damage that develops over time from a hidden internal pipe or tank leak | A hidden pipe slowly leaking behind a wall |
| Other gradual damage | Damage developing over time that doesn’t meet the hidden gradual damage conditions | Rain leaking through a window frame |
Damage needs to be hidden, and caused by an internal water pipe or tank.
Essentially the water damage or leak needs to be hidden from the naked eye. If the leak isn’t hidden there won’t be cover as the damage could have been prevented.
Cover is specific. The source of the water damage needs to come from a tank, hot water cylinder or water/waste pipe.
Examples of Hidden Gradual Damage Claims:
- Sink waste pipe behind kitchen bench top was leaking which damaged and moulded below cabinets.
- Shower’s pressure pipe behind wall was leaking and slowly rotted wall lining and floorboards.
- Broken valve on hot water cylinder leaks water down the inside wall and swells the wooden flooring.
How much cover do I get?
Most house insurance policies have cover for this but with a limit. The limit can range from $1,000 to $5,000 and your excess is taken from the limit.
Our home insurance includes $3,000 of cover.
The conditions are narrow. Any damage from a leak you can see, or one that doesn’t come from a pipe or tank is unlikely to be covered.
Examples that won’t meet the conditions for a Hidden Gradual Damage Claim:
- Leaking window frame causes rain to leak onto the window sill and rot.
- Water leaking onto the floor from a faulty washing machine (unless the leak was from a hidden pipe).
- Damage to the carpet caused by moisture from a potted plant.
What if I’m not sure what type of damage it is?
It’s hard to know exactly how the damage has occurred or where it’s coming from. If you’re not sure we recommend getting a repair quote from a tradesperson ask them to include their opinion on how the damage happened.
Is the leaking pipe itself covered?
Your insurance cover will protect you for the damage that results from the leak.
The cost to fix the leaking pipe itself; or the actual cause of damage won’t be covered. Insurance will pay to repair the resultant damage, but fixing the faulty pipe or equipment will be your responsibility as a homeowner. In most cases this cost is a small part of the total repair costs.
Learn more about the cause of damage here.
Hidden Gradual Damage Claim Example
A tenant discovers the kitchen floor is spongy under the lino where the water pipe for the cold tap had been slowly dripping. Over time the kitchen cabinet swelled causing the particleboard to deteriorate. The landlord gets a builder to quote the cabinet repairs and a plumber to fix the leaking pipe.
| Item | Amount | Claimable? |
| Sink Cabinet Panels | $866 | Yes |
| Fixing, Screws, Glues | $63 | Yes |
| Particle Board Sheet | $110 | Yes |
| Builder’s Labour | $590 | Yes |
| Relaying of Lino | $783 | Yes |
| Piping Replacement | $25 | Not included in cover |
| Plumber’s Labour | $100 | Not included in cover |
| Total Repair Costs | $2,500 | |
| Less costs not claimable | $125 | |
| Total Claimable Costs | $2,375 |
Your standard policy excess will then be taken out of your payout.
Frequently asked questions
Hidden gradual water damage is damage that develops over time from a leak that is hidden from view and comes from an internal water pipe or tank.
What should I do if I don’t know where the water damage came from?
Get a repair quote from a tradesperson and ask them to include their opinion on how the damage happened. This can help establish the cause of the damage.
Is a leaking pipe covered by house insurance?
The resulting damage from the leak may be covered, but the cost of repairing the leaking pipe itself or fixing the cause of the damage isn’t covered.
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