Water Damage Statistics

Water Damage Statistics:

When you consider the statistics, it becomes clear just how common and devastating a water damage problem can be. According to industry estimates, 14,000 people in the US experience a water damage emergency at home or work each day, and 98% of basements in the US will suffer from some type of water damage during their lifetime. The most common types of insurance claims filed for water damage are due to slab leaks, a failed water heater, a dishwasher, A/C leak, a failed pipe in ceiling or wall, leak under kitchen and bathroom sinks, roof leaks, window leaks, and flooding, etc. If these types of claims are not addressed in a timely manner, other issues can occur such as microbial growth, mold, and rot. These issues can drive up the cost of a claim for both the homeowner and the insurance company.

Residential Water Damage

• The average homeowners’ insurance water damage claim was around $11,098. [gitnux.org]
• Annual payouts by insurance companies for residential plumbing-related water damage exceeded $13 billion. [gitnux.org]

Restoration Costs

• Water damage restoration typically ranged from $3.75 to $7.00 per square foot. [gitnux.org]
• Fixing simple burst-pipe incidents could cost upwards of $15,000, depending on location and severity. [gitnux.org]

Commercial Water Damage

• Average commercial property water damage claim cost was three times higher than residential claims. [gitnux.org]

On March 28, 2024, the Consumer Affairs posted some statistics which stated in 2021 the Insurance Information Institute found the frequency of water damage claims being filed each year was approximately 1 in 60 homes. The costs are just as staggering as the frequency. In fact, the National Association of Insurance Commissioners in part estimates water damage restoration and mold remediation cost insurers between $2.5 billion to $13 billion dollars per year. The data from 2017 through 2021 found the average cost of a home water damage insurance claim was approximately $12,514.

More recently, a 2025 report also from the Insurance Information Institute, which is based on 2023 data, water damage accounted for 22.6% of all home insurance claims. The data went on to say that 1 in every 67 insureds homeowners filed a claim due to water damage.

Residential Claims & Restoration

• Homeowner insurance payouts for water damage and freezing averaged $13,954 per claim. [ipropertym…gement.com], [rainbowrestores.com]
• Minor water damage restoration (e.g., leaks) cost $500–$1,200, while mid-level damage could reach $2,500–$6,000, and extensive damage (structural/mold issues) often exceeded $10,000–$20,000+. [uacwater.com]
• Typical restoration range: $1,200–$5,500, with extreme cases up to $20,000+. [uacwater.com]

Commercial Claims

• Commercial property water damage claims averaged around $35,000 per incident. [wifitalents.com], [gitnux.org]

Market Outlook

• The global water damage restoration market was projected to reach approximately $11.14 billion by 2025. [inquirly.com]

Key Insights

• Residential water damage claims steadily rose from about $11k (2024) to $14k (2025) on average.
• Commercial water damage claims remained consistently higher—average ~$35k per event.
• Restoration costs for homes varied widely, reflecting differences in damage severity and mitigation timelines.

BCSI can effectively identify allegedly inflated and excessive charges on invoices from contractors that are or have performed water damage mitigation, mold remediation, or smoke & fire damage restoration work for policyholders.

Effective Water Mitigation and Dry-Out Cost Review

Effective Water Damage Restoration Cost Review

BCSI experienced IICRC water mitigation and mold remediation professional consultants are available to assist with the review and auditing of these estimates and invoices.

BCSI will audit each estimate/invoice and ensure the mitigation and remediation charges are fair and accurate and based on industry standards and pricing.

BCSI Offers:

• Desk review without a site inspection
• Complete review with a site inspection

The first key to an effective review of water mitigation, restoration, mold testing, and remediation estimates and invoices is to get BCSI professional consultants involved at the beginning. The response time is critical, as this would allow BCSI, if possible, to arrive at the claim scene (property) within 24-48 hours of the loss being reported. It is important for BCSI to access the loss either before the insured contractors start the work or no later than the 2^nd day of work. Obtaining an agreed scope of work at the beginning with the contractor could slow down or maybe even stop any alleged deceptive and Unfair Trade Practice.

BCSI will always bring an honest and a balanced approach to the Insurance claims investigation Industry. “Trust, Truth, and Facts Matter” Our clients TRUST BCSI to tell the TRUTH about the FACTS obtained during our investigations. We would like to be considered a continued resource you can always count on.

Submitting new assignments is easy and can be done in about two minutes. Just visit www.mybcsi.com, select Submit Assignment and answer a few questions, drag and drop the claim documents, and select submit. You can also submit a new assignment by simply emailing them to assignment@mybcsi.com.

For more information BCSI and the services we provide visit www.mybcsi.com or call us direct at 954-873-1075.

Source

Water Damage Insurance Claims Statistics 2025 | ConsumerAffairs®