Take a look at your home insurance providers policy on gradual damage. Below are excerpts from some home insurance providers here in New Zealand, as well as a statement from the Insurance Council of New Zealand (ICNZ). Although some of these may look like they are offering you coverage, they are carefully worded as to make it difficult to get a claim on hidden water leaks.
Look at AMI’s claim checklist above. Can you prove hidden water leak damage occurred when you owned the house and that it was not already there at the of purchase? Even if you had a moisture survey carried out when you bought, they will only pay up to $1500 minus excess. This pales in comparison to the cost of having to replace a shower and some flooring, or a whole bathroom rebuild in a worst case scenario.
A statement from the ICNZ regarding gradual deterioration cover and how it is usually listed as an exclusion in insurance policies. Many people are not aware of this and are caught out with a large repair bill.
“Insurance doesn’t cover gradual damage but most insurance policies will pay a small contribution to gradual damage if it is hidden water damage.” “it is often just a small contribution to the actual damage”
– Sarah, ICNZ
Here is a GIF from AA insurance explaining how gradual damage cover is excluded industry wide.
Yet more of the same from another well known NZ insurance provider, Tower. Be sure to check your own insurance policies to know what gaps in protection there are.