What do you need to know about the different categories of water?

When it comes to water damage, there are many things to consider.

Water is one of the most common causes of damage that can occur in a commercial or residential building.

One of the most important factors is the category of water damage.

The 3 Categories of Water Damage

Most insurance claims are related to water damage. Water is one of the most common causes of damage that can occur in a commercial or residential building. According to the Insurance Services Office (ISO), water damage claims are the second most frequent insurance claim, following wind and hail damage.

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Categories of Water Damage

The Institute of Inspection, Cleaning and Restoration Certification (IICRC) defines the three categories of water damage in their Standard for Professional Water Damage Restoration (IICRC S500). These categories refer to the range of contamination in water, considering both its originating source and its quality after it contacts materials present on the job site.

Category 1 Water Damage: Sanitary “Clean Water”
Category 1 water damage is caused by sanitary water, also known as “clean water”. This type of water damage is typically caused by a burst pipe or a leaky faucet.

• Water supply Lines
• Melting Ice/Snow
• Rainwater
• Toilet Tanks
• Toilet bowls without contaminants

Category 2 Water Damage: Significantly Contaminated “Grey Water”
Category 2 water damage is caused by significantly contaminated water, also known as “grey water”. This type of water damage is typically caused by a washing machine or dishwasher overflow.

• Dishwater/Dishwasher/Washing Machine discharge or overflow
• Toilet bowl overflow with urine
• Hydrostatic pressure seepage (commonly occurs in basements or slabs)
• Broken aquariums
• Punctured water beds

Category 3 Water Damage: Grossly Contaminated “Black Water”
Category 3 water damage is caused by grossly contaminated water, also known as “black water”. This type of water damage is typically caused by sewage or floodwater.

• Sewage
• Waste line backflows originating from beyond the trap
• Seawater
• Groundwater
• Rising water from rivers/streams
• Wind-driven rain from Cyclones/Tropical Storms/Hurricans

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Specialty Drying

At Disaster Recovery Qld, we specialise in drying and restoring properties that have been damaged by water. Our team of experts uses the latest technology and techniques to ensure that your property is restored to its original condition.

The use of High-Efficiency Particulate Air (HEPA) Filtration machines used in conjunction with drying equipment reduces the airbourne particles and helping to prevent cross contamination during the remediation process.

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What Types of Water Damage Does Home Owners Insurance Cover?

Home owners insurance typically covers water damage caused by sudden and accidental events, such as a burst pipe or a leaky faucet. However, it’s essential to check your policy to see what types of water damage are covered.

Changes in Insurance Coverage: What You Need to Know

Over the past 1-3 years, insurance coverage has undergone significant changes. Major insurance carriers have reduced their exposure to claims by removing “grandfathered” inclusions, which may leave you with unexpected gaps in coverage.

What’s Changed?

Some common exclusions from standard policies now include:

• Slow leaks
• Bathroom leaks
• Under sink leaks
  These types of claims are no longer automatically covered, unless you opt-in for premium coverage or specifically include them in your policy.

What Can You Do?

To ensure you have the coverage you need, it’s essential to:

• Review your policy carefully
• Shop around to find policies that include these types of coverage
• Ask your insurer to include these in your policy, if they’re not already covered
• Don’t assume you’re covered for these types of claims. Take the time to review your policy and make any necessary adjustments to ensure you have the protection you need.

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Category Deterioration

Category deterioration refers to the process of water damage becoming more severe over time. This can happen when water damage is not addressed promptly, allowing the water to seep into walls, floors, and other areas of the property.

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Frequently Asked Questions

• What is the difference between Category 1, 2, and 3 water damage?
• How do I know what category of water damage I have?
• What should I do if I have water damage in my home or business?

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Get Help Now – 1300 309 361

If you have water damage in your home or business, it’s essential to act quickly.

Contact Disaster Recovery Qld today to get help from our team of experts.

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Data

Water Loss Claims in Australia:
According to a report by the Australian Institute of Health and Welfare (AIHW), water damage is one of the most common types of insurance claims in Australia, with an estimated 1 in 5 households experiencing water damage each year. [1]
A report by the Insurance Council of Australia (ICA) found that water damage claims accounted for 24% of all home insurance claims in 2019-2020. [2]

Top 5 Insurance Claims for Homeowners in Australia:According to a report by the ICA, the top 5 insurance claims for homeowners in Australia in 2019-2020 were:

1. Storm damage (34% of all claims)
2. Water damage (24% of all claims)
3. Theft (14% of all claims)
4. Fire (8% of all claims)
5. Accidental damage (5% of all claims) [2]

Top 5 Insurance Claims for Business Owners in Australia:

According to a report by the ICA, the top 5 insurance claims for business owners in Australia in 2019-2020 were:

1. Business interruption (25% of all claims)
2. Property damage (20% of all claims)
3. Liability (15% of all claims)
4. Workers’ compensation (10% of all claims)
5. Cybercrime (5% of all claims) [3]

National Cost for Business Interruption Insurance in Australia:

According to a report by the ICA, the national cost for business interruption insurance in Australia was estimated to be around $1.4 billion in 2019-2020. [3]
A report by the Australian Securities and Investments Commission (ASIC) found that business interruption insurance accounted for around 15% of all insurance claims in Australia in 2019-2020, with an average claim size of around $35,000. [4]

References:

[1] Australian Institute of Health and Welfare. (2020). Water damage in Australian homes.

[2] Insurance Council of Australia. (2020). Home insurance claims data 2019-2020.

[3] Insurance Council of Australia. (2020). Business insurance claims data 2019-2020.

[4] Australian Securities and Investments Commission. (2020). Insurance claims data 2019-2020.

Wikipedia

 

Note: The data and statistics provided are subject to change and may not reflect the current situation. It’s always best to check with the relevant authorities and sources for the most up-to-date information.