Water damage costs growing

The cost of household water damage in California continues to grow at a fast pace, while the volume of insurance claims for such damage is climbing modestly, a study by the nonprofit Insurance Information Network of California has found.

Remediation and construction costs largely accounted for the $66-million increase in water damage losses from 2001 to 2002, according to the survey.

By comparison, all other homeowner insurance losses increased by $58 million last year, about $8 million less than increased water losses.

The survey found that insurers have paid more than $2.3 billion in household water claims since 1997.

On average, individual water claims cost surveyed insurers $4,925 in 2002, nearly double the $2,537 average water claim at the beginning of the five-year survey period.