Prestige Underwriting has warned that fixed monetary caps on Escape of Water cover could leave unoccupied and holiday home customers significantly exposed, after new claims data showed that fixed caps create protection gaps.
Analysis of claims on unoccupied and holiday home policies so far this year found that 41.4% of claims exceeded £20,000. More than one in five claims, 22.4%, exceeded £50,000.
Prestige Underwriting said the figures highlight the potential protection gap created by policies that apply a fixed Escape of Water cap, particularly at a time when the cost and severity of water damage claims continue to rise across the home insurance market.
The warning comes amid growing concern about the impact of Escape of Water claims, especially for unoccupied and intermittently occupied properties where leaks may go undetected for longer, allowing damage to spread and reinstatement costs to escalate.
Tim Baxter, Business Development and Relationship Director at Prestige Underwriting, said:
“Escape of Water losses can be severe, costly and highly disruptive. A fixed Escape of Water cap may look simple on paper, but our claims data shows it can create a very real protection gap.
“Our view is that brokers and customers deserve a better conversation and access to effective choice. By asking customers to take sensible preventative steps, we can help them retain access to more meaningful protec