Hey guys, David here. As a property manager in New York, one of the questions I run into all the time is about plumbing. Most of the buildings I manage are older, which means the pipes aren’t always in the best shape. A common question I ask my insurance broker is:
are water leaks from old plumbing actually covered by my property insurance?
Here’s the deal. Property insurance is designed to protect against sudden and accidental damage. So if a pipe bursts unexpectedly and causes water damage to units, hallways, or common areas, that’s usually covered. The policy pays to repair the water damage to the building, and in many cases, it can also cover the cleanup and restoration.
But there’s a catch. If the leak is caused by wear and tear, corrosion, or poor maintenance, most carriers won’t cover it. Insurance companies expect property managers and owners to keep the plumbing in good working order. So, if a pipe has been slowly leaking for months and nobody fixed it, the cost of repairing that pipe and the damage it caused is likely excluded.
That’s why regular maintenance and inspections are so important. I’ve learned that documenting plumbing repairs and upgrades not only helps prevent claims but also makes it easier to prove that I took reasonable steps to maintain the property if a claim does come up.
Another thing to think about is water backup coverage. Standard property insurance usually doesn’t cover water that backs up from drains or sewers, but you can add that as an endorsement. Living in New York, where basements and lower levels are prone to backup, that extra coverage can be a lifesaver.
At the end of the day, property insurance is there to cover sudden surprises—not gradual problems. If you manage or own a building, it’s smart to talk to your broker about how your specific policy handles plumbing-related losses.
If you want to review your property coverage or get a quote, give The Sarrica Group a call at 516-277-0812 or fill out our quick form online: Request a Quote Here.