Currently, Water Damage Losses cost insurers more money than any other type of loss. With more and more apartments, strata's and townhouses appearing, losses are increasing every day.
What do insurers do? Should they increase rates to offset the cost of the claims? Or, should they increase deductibles to mitigate the losses and keep the little ones from hurting the overall bottom dollar?
At this time, insurers seem to be choosing to impose higher water damage deductibles without generally increasing rates. Good for the larger corporations, big strata's or big apartments but harder on the individuals.
Keep an eye on your coverages and your deductibles, you never know which one you will need to use first.
