Why 70% of Condo Claims Are Water-Related — and How Boards Can Break the Cycle

Seven out of ten condo insurance claims are caused by water damage. That single statistic explains much of the financial stress condo boards face today.

The sources are varied. A corroded pipe behind a wall. A failed washing machine hose. A leaking toilet supply line. Each seems minor until it isn’t. In multi-unit buildings, water moves fast, spreading from one suite to the next and into common areas.

The Cycle of Claims

The result is predictable: insurers raise premiums, boards struggle to fund repairs, and owners shoulder higher costs. Some buildings become nearly uninsurable, with deductibles so high they can no longer rely on coverage at all.

Breaking this cycle requires boards to accept that water is not a secondary risk. It is the primary threat to financial stability.

The Tools to Break Free

Certified leak detection provides a way out. With in-pipe sensors, floor sensors, and automatic shutoff valves, boards can stop small leaks from becoming catastrophic events. Real-time alerts allow managers to respond in minutes, not hours.

This shift from reaction to prevention is more than technical. It is cultural. Boards that prioritize prevention demonstrate leadership, responsibility, and a clear commitment to safeguarding both residents and reserves.

The cycle of claims, premiums, and deductibles can be broken. It begins with recognizing water as the central risk and taking action to prevent it.