The incidence of “gradual damage” seems to be on the rise, as homes get older and older. Gradual damage generally seems to revolve around rot, mildew, corrosion and the like, from water leaks. Many years ago there was absolutely NO cover for any form of gradual damage offered by Insurers. However, competition over the years has seen the “gradual damage” extension brought in to cover SOME types of events.

The generally accepted scope of cover is where there is a hidden leak from a water pipe or water system in the home. The insurance doesn’t cover the cost of fixing the leak – that is more of a maintenance issue – but it does cover the resultant damage caused by the water leak over time. Do bear in mind that this cover is usually limited to either $2,000 or $3,000 depending on the policy terms (IF it’s covered at all). Remember, there are still many instances around where gradual damage has occurred, but is not covered by this extension.

Common examples are:

– A rotting floor in a bathroom where water has constantly splashed out of the shower cubicle;

– A rotting floor, again, often in a bathroom, where tiles haven’t been sealed properly;

– Carpet rotting and discolouring in basement areas, due to constant moisture.

These types of events are not valid insurance claims, and when you think about it, there’s no reason why they ever should be. Insurance is all about a sudden and unforeseen event occurring. The gradual damage extension does go beyond this, because it’s not “sudden”, however if it is a pipe behind a wall that is leaking, then it is generally unforeseen. The reason there is a limit of $2,000 to $3,000 is that insurers can’t be expected to repair homes through gradual damage, as eventually it’s a matter of “WHEN”, not “IF” it will happen, due to houses getting older.