Water Damage from Leaks or Bursts
Leaking or burst water heaters, pipes, or connections can cause significant water damage to units, common areas, and structural components of a building. This is one of the most common claims, especially in older or poorly maintained systems.
Flooding Due to Water Heater Failure
When a water heater fails completely, it can release a large volume of water, leading to flooding. The water can damage floors, walls, ceilings, and personal throughout the building.
Mold Growth Following Leaks
If water damage from a leaking water heater isn’t addressed promptly, it can lead to mold growth, which can be costly to remediate. Mold claims are common in multi-family properties where water heater leaks are slow and undetected for an extended period.
Explosion or Fire from Gas Water Heaters
Gas-powered water heaters can pose a risk of explosion or fire if they are improperly installed, maintained, or vented. This can lead to serious damage to the building and personal injury claims from tenants.
Scalding Injuries
If a water heater malfunctions or is set to an excessively high temperature, tenants may experience burns or scalding injuries from hot water. Property owners can face personal injury claims if the system is proven to be defective or poorly maintained.
Carbon Monoxide Leaks
Faulty gas water heaters can lead to carbon monoxide leaks, putting tenants at risk of poisoning. If proper ventilation or maintenance protocols are not followed, these incidents can result in insurance claims for medical expenses or even wrongful death lawsuits.
Structural Damage from Corrosion or Rust
Over time, water heaters can corrode, causing rust and structural damage to the water heater unit itself or surrounding components. This can lead to claims for replacement or repair costs.
Damage from Pressure Relief Valve Failure
If the pressure relief valve fails or is blocked, pressure can build up inside the water heater, leading to a rupture or explosion. This can cause extensive property damage and personal injury claims.
Property Damage from Electrical Failures
For electric water heaters, electrical malfunctions or shorts can lead to property damage, fires, or system failures, which result in claims for damage to the building or personal property of tenants.
Loss of Income Due to Tenant Relocation
In cases where severe damage from a water heater failure makes units uninhabitable, property owners may file loss-of-income claims for the period tenants must vacate while repairs are being made.
