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Mercury highlights maintenance gaps as a driver of disputed water claims
Mercury said water damage accounts for about 22.6% of homeowners claims by frequency and carries an estimated 10% denial rate, fueled by disputes over whether losses were sudden or gradual.
Mercury Insurance is urging homeowners to address maintenance issues before they escalate into water-related damage that may be harder to cover. In guidance shared through Insurance Business, the carrier pointed to common failure points such as roof shingle problems, plumbing drips, clogged gutters, cracked caulk, HVAC upkeep lapses, and overhanging branches.
Mercury framed the message around prevention, saying many problems are easy to delay because early signs may not look serious, while water and weather can keep damaging areas homeowners cannot readily see. For insurance professionals, the focus also mirrors where standard homeowners policies draw the line between sudden, accidental water damage and exclusions tied to gradual leaks, seepage, or deferred maintenance, according to the outlet.
Insurance Business cited Insurance Information Institute data for 2023-based figures, saying water damage is the second most common homeowners claim type after wind and hail, at about 22.6% by frequency. The outlet also reported that the average private homeowners insurance claim for water damage is $15,400 across the 2019 to 2023 period, and that water damage has the highest denial rate of any homeowners claim category at roughly 10% based on industry estimates.
The carrier also said claims teams have observed that a significant share of weather-related losses trace back to maintenance failures rather than external storm damage. Insurance Business added that litigation can turn on the distinction between legitimate maintenance denials and alleged bad-faith claims, including a recent Pennsylvania case where policyholders sued after an insurer classified a water supply line failure as vandalism instead of a covered loss.