More than two in five escape-of-water claims on unoccupied and holiday home policies exceeded £20,000 this year. The figures come from Prestige Underwriting and have prompted a warning about fixed monetary caps on such cover.
Internal data showed 41.4% of claims on those policies exceeded £20,000. More than one in five claims, 22.4%, exceeded £50,000.
Prestige Underwriting found that 41.4% of claims on those policies exceeded £20,000. More than one in five claims, 22.4%, exceeded £50,000.
Escape of water is one of the costliest perils in UK home insurance. For unoccupied or intermittently visited properties, the risk runs deeper. A leak can go undetected for days or weeks, and damage spreads long before any repair work begins.
That delayed discovery is a well-documented problem in the specialist market. One underwriter active in unoccupied property said the lag between a leak and an owner finding it defines the risk.
“The clue’s in the name. The properties aren’t occupied, so there can be a bit of a lag until you realize the severity of that,” the underwriter said.
A major water loss can damage floors, ceilings, electrics, fixtures, fittings, and contents. Properties can become uninhabitable for extended periods. The costs often run well above what a capped policy will cover.
Tim Baxter, business development and relationship director at Prestige Underwriting, said fixed caps create a real shortfall for affected customers.
“Escape-of-water losses can be severe, costly and highly disruptive,” he said. “A fixed escape-of-water cap may look simple on paper, but our claims data shows it can create a very real protection gap.”
Baxter also pointed to preventative steps. He said customers who turn off the main water supply and drain the cold-water system when unoccupied can retain more meaningful cover. That approach also cuts the likelihood and severity of a loss.
The warning is relevant to brokers placing cover for holiday homes, unoccupied properties, higher-value homes, and those with older plumbing systems. Brokers should discuss the true cost of escape-of-water damage with clients. They also need to make clear where capped policies may not respond adequately to a large loss.
The issue extends beyond one provider’s book. The ABI has reported that escape of water is among the most frequent and expensive causes of home insurance claims in the UK. Average claim values have risen in line with build cost inflation.
That pressure is visible in premium data. Consumer Intelligence found that customers making escape-of-water claims saw no reduction in quoted premiums during a period when most other claim types received discounts. The market is already treating this peril as a persistent cost driver.
Prestige Underwriting said the issue should be treated as a customer outcome matter. That framing sits directly within the FCA’s Consumer Duty obligations on brokers to evidence fair outcomes for clients.
For unoccupied and holiday properties, the gap between what a fixed cap covers and what a major water loss actually costs is widening.
Independent data reinforces that view. A 2025 report by RebuildCostASSESSMENT.com found escape-of-water losses are among the perils most commonly revealing shortfalls at claim stage. Insured sums regularly fell short of actual rebuild costs. Some 71% of brokers reported more claims being reduced due to underinsurance in 2025.
The pool of at-risk properties may also be growing. Policy changes around second homes taxation are expected to push more properties into periods of vacancy. Unoccupied homes already face restricted cover under most standard residential policies after 30 to 60 days empty. That restriction adds further urgency to the broker conversation.
