Trends in water damage mitigation

Key takeaways 

In this article, we’ll explore key strategies you can share with your clients to help prevent water damage and minimize its impact. This includes proactive prevention measures and effective response steps, so property owners are better equipped to protect their assets, minimize disruptions and keep small problems from becoming major losses.

Water damage is one of the most common and costly risks property owners face. Whether it’s a burst pipe in a commercial facility that halts operations and damages inventory or a leaking appliance in a home that ruins flooring and walls, the cost can be significant. Non-weather-related incidents, such as plumbing failures, appliance leaks and roof issues, are a major source of claims for both commercial and personal property insurers — and costs are on the rise.

By guiding clients toward a predict and prevent mindset, agents can help reduce the frequency and severity of claims, improve client satisfaction and strengthen long-term relationships. 

Understanding water damage risks

Water damage can originate from many sources, and both homeowners and business owners face significant exposure. Common causes include: 

• Plumbing and pipe failures: Burst or leaking pipes, failed fittings and corroded lines can release thousands of gallons of water in a short time. 

• Appliance and equipment malfunctions: Leaks from HVAC systems, water heaters, dishwashers, ice machines or manufacturing equipment can cause widespread damage before they’re detected.  

• Roof and building envelope failures: Damaged roofing, clogged gutters and compromised flashing allow water intrusion from rain and snowmelt.  

• Sewer and drain backups: Blocked and overloaded drainage systems can lead to water entering living and workspaces, especially underground storage areas or basements.  

• Weather-related events: Heavy rain, snow and flooding can overwhelm buildings not designed to withstand high water volumes.   

The impact can be substantial. Water can destroy personal belongings, inventory and equipment, weaken structural integrity and lead to costly mold remediation. For businesses, it can also force temporary closure and result in lost revenue.

From a financial perspective, the stakes are high. Non-weather water damage is one of the most frequent sources of property claims at Nationwide. Average losses can approach $14,000 per incident, and severe cases can run much higher.¹  

Tips to mitigate water damage for homeowners

Helping homeowners understand how to prevent water damage can protect their property, reduce the likelihood of a costly claim and provide peace of mind. By sharing these strategies, you can help homeowners take proactive steps to safeguard their homes from one of the most common and expensive types of property damage.

• Encourage routine home maintenance. Advise homeowners to inspect plumbing and fixtures regularly for leaks, check roofs and flashing for signs of wear and ensure gutters and downspouts are clean. Seasonal checks, before winter freezes and after heavy storms, can help catch small issues before they become major repairs.  

• Recommend preventive tools and technology. Suggest installing devices such as sump pumps, water detection sensors and automatic shut-off valves to help catch problems early. Smart home technology programs can also offer discounts and additional tools for preventing costly water damage. Nationwide has a partnership with Insurtech company LeakBot, homeowners are provided a single self-install sensor that monitors the whole of the freshwater plumbing system to find hidden leaks, and providing alerts before they turn into major issues.  LeakBot then provides their own expert technicians to find and fix the root cause of the leak in homes – all provided at no charge to Nationwide customers. Since the partnership’s launch in January 2024, LeakBot has identified and repaired 90 leaks in Nationwide customers’ homes, including 16 that would have caused significant property damage if left unresolved. 

• Clarify coverage and flood insurance options. Encourage homeowners to review their insurance policies to understand what’s covered when it comes to water damage. About 96% of households don’t have flood insurance² despite the fact that flooding is a common and expensive natural disaster and many standard homeowners policies exclude flood damage, which requires separate coverage. Making sure clients understand their options ahead of time helps prevent unexpected expenses during a claim. Nationwide’s E&S/Specialty Programs has partnered with Titan Flood to address this evolving risk. 

Tips to mitigate water damage for businesses

For businesses, water damage can be more than a repair bill — it can disrupt operations, halt production and cause long-term reputational harm. Proactive prevention and planning can greatly reduce the risk of losses and keep operations running smoothly. Here are key strategies you can share with your commercial clients to help them identify vulnerabilities and minimize exposure.

• Conduct regular risk assessments. Schedule periodic inspections of the property to identify vulnerabilities in plumbing, roofing, HVAC systems and other water-dependent infrastructure. A thorough assessment can uncover small issues before they escalate. 

• Develop a water damage mitigation plan. A formal mitigation plan should outline maintenance schedules, inspection checklists and emergency procedures. Emphasize high-risk areas such as HVAC systems, sprinkler systems and plumbing lines. Include steps for winterizing pipes, monitoring equipment and quickly shutting off water in an emergency. Our Water Mitigation Program can help Nationwide commercial clients reduce the potential for loss due to water damage from a variety of sources. 

• Implement routine maintenance. Create a proactive maintenance schedule for plumbing, roofing and drainage systems. This includes roof inspections, cleaning gutters and downspouts and ensuring proper drainage away from the building. 

• Install monitoring and detection systems. Water monitoring systems can alert facility managers to leaks or flooding in real time, allowing for rapid response before damage escalates. Place sensors near high-value equipment, mechanical rooms and vulnerable areas. 

• Train employees to spot early warning signs. Encourage staff and maintenance crews to report leaks, drips, unusual odors or damp spots immediately. A culture of awareness can significantly reduce response times. 

• Maintain sewer and drainage systems. Schedule periodic inspections and cleanings to prevent blockages and backups that could result in significant property damage. 

• Plan for business continuity. Recommend business interruption insurance to cover lost income and operating expenses if the company is forced to close due to water damage. Include contact information for restoration vendors in an emergency response plan so recovery efforts can start immediately.

Find additional insights into creating tailored prevention strategies for the following industries: senior living facilities, human services organizations and contractors of all sizes and trades.  

Tools and resources for insurance agents

There are many resources available to property owners for mitigating water damage. Here are a few to share with your clients: 

• Nationwide’s water mitigation closing checklist: A practical guide to help businesses identify and mitigate potential high-risk areas before they leave the job for the night, weekend or extended shutdown period.  

• FEMA’s know your flood risk: Helps property owners assess their flood exposure, understand flood maps and determine if additional coverage is needed.  

• FEMA’s protect your home from flooding: A brochure with practical mitigation steps such as sealing foundations, installing flood vents and using flood-resistant materials.  

• CDC’s guidelines for septic and onsite wastewater systems: Recommendations to protect septic systems during flooding and prevent system failures.  

We also recommend talking to your clients about technology solutions such as AI-driven risk analytics, which can help identify high-risk properties by analyzing claims history, geographic data and property characteristics. This information can guide targeted prevention advice and proactive maintenance strategies, reducing both claim frequency and severity.  

Nationwide E&S/Specialty Programs has partnered with Titan Flood, a company using artificial intelligence, enhanced data, and evolved modeling for more accurate risk assessments, significantly improving loss ratios.   

The benefits of proactive water damage mitigation

When clients are proactive, it can lead to fewer and less severe claims, which supports overall profitability and enables more competitive rates. It also builds trust and strengthens relationships, as your clients view you as a knowledgeable partner who helps protect their assets.   

By making water damage prevention a consistent part of client conversations, agents can deliver real value — reducing risk, improving outcomes and fostering long-term loyalty.