Flooding?
- Pipes freezing and bursting can cause expensive and painful situations. The losses resulting from frozen pipe’s bursting are simple to tally up. They comprise (arranged in ascending order, almost by orders of magnitude):
- Repair of compromised plumbing components ($x10)
- Discovery and access to plumbing repair ($x100)
- Loss of use (revenue),
- cost of accommodation ($x1,000)
- Repair/replacement of flood damaged property ($x10,000)
- The ascending scale of asset value/replacement cost may be one of the primary risk factors that offsets the ordinarily low likelihood of a burst pipe—it is not uncommon for a kitchen remodel to cost 15% of the home’s value. With average home prices in several parts of the country now exceeding $1M, some homeowners may be facing a potential loss that is 30 times the average claim. Taylor, “Cost of Constructing a Home.”