Building insurance could become more expensive due to pipe water damage

Tap water damage is increasing sharply

That’s why building insurance could become more expensive

The financial damage caused by burst pipes and leaky pipes is reaching a new record level. This could lead to significantly higher insurance costs.

In 2024, insurers had to pay almost five billion euros for pipe water damage – more than twice as much as ten years earlier. This makes them by far the largest cost factor for homeowners insurance. Leaks in the pipe system already account for over half of all damage to residential buildings.

The numbers are alarming not only for insurance companies, but also for homeowners. The sharp increase in damage amounts could soon be reflected in significantly higher premiums. The independent money guide “Finanztip” points this out. But what is causing the increase and what can owners do to protect themselves and save money at the same time?

The sharp increase in damage amounts has a clear trigger: old water pipes. Many residential buildings still have outdated structures. The older the pipes, the higher the risk that they will crack, burst or leak unnoticed. Leaks not only cause high repair costs, but also immense damage to floors, walls and furniture.

The statistics show how big the problem is: According to the General Association of the German Insurance Industry (GDV), the cost of pipe water damage has more than doubled from a good 2.3 billion euros in 2015 to 4.9 billion euros in 2024 – an increase of around 110 percent. Since 2019 alone, costs have increased by 60 percent. Hardly any other area of ​​damage has become so expensive in recent years.

Another reason for the high costs: tap water damage often develops gradually and initially goes unnoticed. “While storm damage is immediately visible, water leaks can remain undetected for days or weeks and spread unhindered,” explains Saidi Sulilatu, editor-in-chief of “Finanztip”. This drives up repair costs and represents an enormous burden for insurers.

Mains water damage often catches homeowners unprepared and can cause enormous damage within hours. This makes it all the more important to react quickly and carefully in an emergency. Sulilatu warns: “Many homeowners underestimate the risk. A small leak can have major financial consequences if it goes undetected.”

Important to know: After major damage, the insurance company can terminate the contract, even if it has covered the costs. “Anyone who is then looking for a new policy will have a difficult time,” says Sulilatu. For owners, this means: Prevention is better than cure. Many risks can be avoided through regular maintenance and, if necessary, renovation of old pipes.