From Reaction to Prevention
An interactive analysis of the financial impact of water damage and the proven efficacy of LeakNet's proactive risk mitigation.
The Unseen Flood: A Multi-Billion Pound Problem
Escape-of-water incidents are not just common; they're a growing threat, far more likely than fire or theft, with a staggering financial impact.
Projected claims in 2025 due to escape of water [18].
Paid out daily by UK insurers for escape-of-water claims [1, 2].
£1.18 paid out by property insurers for every £1 in premiums last year [18].
Risk Comparison
Water damage is 4.9x more likely than theft and 14.5x more likely than fire [21].
Disproportionate Impact
Escape-of-water accounts for a staggering 29% of all home insurance claims [21] and accounts for 1/3 of all claims by value [1].
The Recurrence Risk
50% more likely to claim a second time and 80% more likely to claim a third within 12 months [10].
Top Water Damage Claim Categories
Analysis of 5 years of data reveals the highest-cost sources of water damage, with an overall average claim value of £13,753 [19]. These values are typical across the industry [22].
The Proactive Shift
LeakNet transforms risk management by intervening *before* damage occurs, fundamentally altering the outcome of a potential leak.
Reactive Path: Damage Control
LeakNet's Proactive Path
Evidence Dashboard: Quantifying the Reduction
Data from LeakNet and other leading systems provide undeniable proof of dramatic risk reduction. Click on a bar to see more details.
Comparative Claim Reduction (Frequency)
LeakNet
Reduces the chance of a claim on a construction site by reducing the likelihood of a claim from 63% to 11% [6].
Reduction in Claims
The Value Proposition: A Dual Impact
Smart shutoff systems deliver transformative value by reducing *both* the number of claims and their cost, directly improving loss ratios.
Frequency
The number of claims that occur.
Severity
The average cost of each claim.
Improved Loss Ratio
The Insurer's Payback Period
The investment in a smart leak solution provides a rapid return for insurers.
The calculation is based on the following: for every 1,000 properties, with an estimated claim rate of 10% [10], there are 100 claims. By reducing the claims rate by 83% [6], 83 claims are prevented, leaving 17 claims. With the average claim cost being £13,753 [19], the insurer saves an average of £1,114,499 per year for every 1,000 properties insured. This means a £1,000 solution per property has a payback period of just 0.9 years.
Note: This calculation does not include the additional benefits of reduced claim severity or increased customer retention rates [15].
£1k
/£1.1k
per property saving per year
~0.9
Year Payback
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References
- [1] Association of British Insurers (ABI) (2020). *Escape of water claims a rising tide*.
- [2] Aviva (2020). *Escape of water and other fluids risk management guidance*.
- [3] Consumer Intelligence (2020). *Water Damage on the Rise*.
- [4] FCA (2023). *Report on Insurance for Multi-Occupancy Buildings*.
- [5] Quensus. *LeakNet AAFMS*.
- [6] Quensus (2021). *Case Study: LeakNet Gen2*.
- [7] LexisNexis Risk Solutions (2020). *Flo by Moen Smart Water Shutoff device study*.
- [8] USAA (2022). *Connected Home program*.
- [9] VYRD (2023). *Partnership with Phyn*.
- [10] The Actuarial Foundation. *Insurance Metrics*.
- [11] Wikipedia. *Water damage*.
- [12] Chartered Insurance Institute (CII). *Escape of water good practice guide for claims*.
- [13] LeakBot. *About LeakBot*.
- [14] Zurich. *An overview of water leak detection and suppression devices*.
- [15] Life Insurance International. *Leak detector growth home insurance*.
- [16] Wint. *Water Intelligence, Data and Analytics*.
- [17] Wint (2023). *Wint saves millions of gallons of water*.
- [18] EY (2024). *2023 is another loss-making year for UK home insurers*.
- [19] Insurety. *Water Damage Insights*.
- [20] Munich Re & Wint (2024). *Wint water intelligence technology reduces water damage claims*.
- [21] GoCompare (2025). *Home Headaches: Top Reasons Behind Home Insurance Claims Revealed*.
- [22] ILA UK (2023). *Average insurance payout for water damage in the UK*.
- [23] ABI (2025). *£1.6 billion paid in property claims in Q2 2025*.
