A dangerous flex

Flexible hoses have become a major cause of home water damage, creating a headache for policyholders and insurers alike

By Claire Heaney

They are low-cost pipes that do the heavy lifting under sinks and behind washing machines, toilets and plumbed refrigerators, but when flexi-hoses fail, they can leave homeowners floundering.

Some unsuspecting policyholders have found water damage claims are far from straightforward, and some are rejected under “wear and tear” policy exclusions.

Insurers warn the shift to more open-plan living means water damage is not contained, spreading quickly through houses and between storeys.

Now, insurance companies are moving to educate policyholders, to help them understand how flexi-hoses work and how to maintain them.

Many consumers do not even know the connectors are there behind cisterns, dishwashers and fridges.

Suncorp says that of the 22,000 “escape of liquids claims” it handled last year, about one in 10 were caused by burst flexi-hoses.

In April, it released a study revealing it spent six months inspecting customers’ flexi-hoses and found 30% were at risk of bursting and should be replaced. That’s an average of two flexi-hoses per house.

It says the average cost of a burst flexi-hose claim is more than $27,500. On top of that, a shortage of trades means repairs can take months.

Allianz has pointed to Insurance Statistics Australia data indicating that in a 12-month period to the fourth quarter of last year, the insurance industry reported claims for all burst pipes – not just flexi-hoses – totalling $864 million

Data from NRMA Insurance shows water damage was among the leading reasons for property claims last year, with burst pipes accounting for more than half of all water damage claims.

In August last year, QBE polled 1000 people about water damage, maintenance and flexi-hoses. It found half had experienced water damage or knew someone who had. When it came to flexi-hoses, 31% said they had never checked theirs, 25% had never replaced one, 73% did not know the signs of deterioration and 78% did not know they are designed to last five to 10 years.

Some insurance claims concerning flexi-hoses – a rubber hose reinforced on the outside with stainless steel webbing and clamped at either end with steel fittings – have ended up before the Australian Financial Complaints Authority, with mixed outcomes.

In a ruling in June 2023, AFCA directed an insurer to pay a claim for a burst flexi-hose under a bathroom sink. The insurer had initially denied the bid, saying the hose failed due to rust and corrosion – wear and tear that was excluded by the policy.

AFCA was not satisfied rust on the outer braided layer was enough to establish it as the proximate cause of the loss. It said the onus was on the insurer to show how rust had started the chain of events.

The authority noted flexi-hoses had been known to fail for various reasons, not just the presence of rust.

In July 2023, a General Insurance Code Governance Committee report called Making Better Claims Decisions said insurance companies were putting undue weight on maintenance and wear and tear exclusions to reject claims. It said poor-quality expert reports failed to “provide a clear and demonstrable link between the cause of damage and the loss”.

The plumbing industry has warned flexi-hoses, which have become widely used over the past 30 years, need to be checked regularly.

A Suncorp spokeswoman tells Insurance News: “Flexi-hoses are generally in high-usage areas such as kitchens, laundries and bathrooms, and can usually be seen by popping your head under the sink.

“Unfortunately, some flexi-hoses may be harder to see as they can be inside toilet cisterns and behind heavy appliances such as washing machines, making them more challenging to inspect. We understand it’s not always possible to inspect every flexi-hose, particularly when hidden behind walls.”

Suncorp says water claims caused by burst flexi-hoses are assessed on a case-by-case basis to see whether policy exclusions apply.

“As part of the Suncorp Insurance flexi-hose study, we are looking at water pressure valves to limit water pressures in areas where these are high and may be contributing to damage from a burst flexi-hose,” the spokeswoman says.

When launching in a blaze of publicity last year, Aldi Insurance made much of its free sensors, designed to alert policyholders to issues such as water leaks.

When people take out home and contents cover, they can opt to receive three smart home sensors valued at $250. The devices, provided by Aldi’s insurance partner Honey, send smartphone alerts of leaks, open doors and windows, temperature changes and alarms. People opting in can get an 8% discount on their premiums.

The Aldi product disclosure statement says the sensors need to be activated throughout the policy period, and Honey monitors whether they are to ensure eligibility for the discount. Honey has not commented for this story.

Another insurance company has told Insurance News it is examining sensors but is unconvinced they will help with concealed leaks.

“Our research revealed that flexi-hose failures were most common in bathroom vanity cabinets”
NRMA Insurance

Suncorp says it has “looked at sensors and shut-off valves and continues to monitor the effectiveness of these in the market”.

Like some other insurers, QBE is not sold on sensor technology.

“While some insurers have explored sensor technology to help detect water leaks, it hasn’t yet shown strong enough results to meaningfully reduce the risk at scale,” QBE chief claims officer for Australia and Pacific Julie Starley says.

“For now, practical steps, like regular inspections, remain the most reliable way to protect your home.

“Some maintenance tasks are simple, while others are best left to the professionals. Having a licensed plumber inspect key areas like flexi-hoses, pipes, tap fittings, plumbed appliances and toilet cisterns at least once a year can help catch and address issues early.”

According to the Aldi website, smart home sensor data is not used in the processing of claims.

NRMA says it has been looking at flexi-hoses for a decade, to understand the key causes of incidents.

“Flexi-hoses typically fail or burst due to corrosion, wear and tear, and fatigue over time. The amount of water damage to a property can be extensive,” its spokesperson says.

“Our research revealed that flexi-hose failures were most common in bathroom vanity cabinets. Some of the key contributing factors include water main pressure, lack of ventilation, high humidity, condensation and steam, which can cause the flexi-hose to corrode.”

NRMA’s checklist for regular home maintenance includes looking for fraying, rust or corrosion. If a hose is stiff, it may need replacing. It also recommends searching for drips around the hose and advises customers to opt for flexi-hoses with water stops fitted.

Like other insurers, QBE Australia is working with policyholders to minimise risks. Ms Starley says wear and tear refers to gradual deterioration from regular use or age, possibly causing a slow leak. It may not be covered under many home and contents covers, she says.

“However, many home and contents policies may provide cover for damage caused by the sudden escape of water, such as from a burst flexi-hose.

“Regular maintenance is one of the most effective ways to reduce the risk of water damage. While wear and tear is a normal part of owning a home, it can also be an early warning sign of more serious issues, such as hidden water leaks.”

Ms Starley urges homeowners to check flexi-hoses every few months for moisture, bulges and exposed wires. “It’s also important to remember that flexi-hoses have expiry dates and generally have a lifespan of five to 10 years,” she says.

Insurers have also warned against a DIY approach to repairs and replacing hoses. Allianz says its claims are assessed case-by-case and consider specific circumstances.

“Generally speaking, wear and tear is not covered under standard home and landlord insurance policies, which is why it’s so important for Australians to conduct regular maintenance checks of their property and fix issues when they see them,” a spokesperson says.

“However, every insurer is different, and we would encourage customers to read their PDS and speak to their insurance provider to understand the specific details of what’s covered under their policy.”

Allianz is encouraging proactive maintenance and it has teamed up with media personalities such as The Block’s Scott Cam to make educational videos.