Summer Drought, Burst Pipes & Water Damage: Insurance Gaps You Might Overlook

Why Water Claims Spike in Los Angeles and Across California, Even in the Dry Months

​When Californians think of property damage, wildfires and earthquakes often come to mind. But there's another year-round threat that quietly costs homeowners thousands, especially during the hot, dry summer months: water damage. This article explains why water claims are so frequent in California, particularly in the Los Angeles area, and what homeowners can do to better protect their property.

Why Water Damage Spikes in the Summer​

​It may sound counterintuitive, but summer is a peak season for water damage claims. Heat causes pipes to expand and contract, making older systems vulnerable to cracks or ruptures. At the same time, water use increases—irrigation, showers, pools—putting even more stress on aging plumbing. Combined with high water pressure and Southern California’s mineral-rich hard water, the risk of pipe failure is surprisingly high during the driest part of the year.

Why Water Damage Is So Common in Los Angeles

​Southern California, and Los Angeles in particular, has some beautiful architecture, from Spanish Colonial Revival and Craftsman homes to Mid-Century Modern and Art Deco gems. These styles are found in neighborhoods like Hancock Park, Los Feliz, Pasadena, West Adams, and Culver City. While we admire these historic homes, preserving their value means investing in proactive upkeep, especially when it comes to plumbing.

Water damage is one of the top causes of insurance claims in California, and Los Angeles leads the pack. According to the California Department of Insurance, ZIP codes in greater L.A. report between 19 and 83 water claims per 1,000 exposure years, significantly higher than in other parts of the state.

What Makes L.A. Homes Especially Vulnerable

• Aging plumbing systems – Many homes still have galvanized steel pipes that corrode and fail over time, especially those in neighborhoods like Hancock Park, West Adams, and Echo Park.
• High water pressure – In hillside areas like Bel Air and the Hollywood Hills, water pressure often exceeds 80 PSI, well above the recommended range, placing extra stress on aging pipes.
• Slab foundations – Homes built after World War II often have pipes encased in concrete slabs, making leaks harder to detect and more costly to repair.
• Hard water and mineral buildup – The mineral-rich water supply in Southern California causes internal scale that can restrict flow and accelerate deterioration.
• Temperature swings and heavy use – Frequent temperature shifts and high occupancy in many L.A. homes increase daily wear and tear on plumbing systems.
• Delayed detection during summer travel – Vacant homes during vacation season mean small leaks can go undetected, resulting in major damage.

Together, these conditions make Los Angeles one of the most water-damage-prone housing markets in the country. Regular plumbing inspections and a well-structured insurance policy are essential to help prevent and mitigate losses.

Why Burst Pipes Happen in Warm Climates

Most people associate burst pipes with freezing temperatures, but in California, the risk comes from a different set of factors: drought stress, aging infrastructure, and extreme temperature shifts. While many of these causes were introduced earlier, this section focuses on how warm-weather risks lead to sudden pipe failures.

• Old pipe materials – Galvanized steel and polybutylene pipes are prone to failure from corrosion or cracking, especially in homes built before the 1980s.
• Temperature swings – Large day-to-night shifts cause pipes to expand and contract, putting stress on joints and materials.
• Overloaded systems – Multi-generational homes or high-occupancy properties put extra strain on fixtures and pipes.
• Slab leak vulnerabilities – Pipes installed under concrete slab foundations also present additional challenges. These slab leaks are harder to detect and often more expensive to repair. A single line break under a slab can go unnoticed for days.  Homeowners should be aware that leaks in these systems typically require invasive repairs and can contribute to substantial claims.

Water Damage vs. Fire: Which Is More Common?

Despite California’s wildfire reputation, water damage is a more frequent and often overlooked source of homeowner claims. Small plumbing issues such as hidden leaks or aging connections are far more common than large fires—and they often go unnoticed for days or even weeks:

• 1 in 60 homes files a water damage claim annually, compared to 1 in 425 for fire (Insurance Information Institute)
• Water damage accounts for 24% of homeowner claims, while fire is slightly lower (Bankrate)
• The average water damage claim costs over $13,000, and in California’s high-cost housing market, that number is often higher (Quicken Loans)

What’s Covered (and What’s Not)

Typically Covered:

• Sudden pipe bursts: Caused by unexpected breaks or ruptures in plumbing
• Overflow from appliances or plumbing fixtures: Includes dishwashers, washing machines, bathtubs, and sinks

Often Excluded or Limited (Unless Endorsed):

• Gradual or hidden leaks: May require a hidden water damage endorsement
• Mold remediation: Requires a separate mold endorsement or rider
• Sewer or drain backups: Typically excluded unless you’ve added a backup endorsement
• Seepage through walls or foundations: Often not covered under standard policies
• Flooding: Requires a separate flood insurance policy
• Underground service line damage: May be available through a specific endorsement

FAIR Plan + DIC Policies Still Have Gaps

​In wildfire-prone areas, many Californians rely on the California FAIR Plan paired with a DIC (Difference in Conditions) policy. While this combination offers broader protection, it still often excludes key causes of water damage:

• Gradual leaks
• Sewer or drain backups
• Slab leaks

Even with add-ons like a DIC policy, many water-related risks remain uncovered, particularly those involving gradual damage or long-term maintenance issues. Homeowners should review these gaps carefully and ask their agent whether additional endorsements are available.

Water Claims and Insurability

​Filing a water damage claim can have long-term effects:

• Multiple claims may trigger non-renewal by your current carrier
• Claim history may affect your ability to insure a new home, even if you're not the owner at the time of the loss

What if you're buying a home that had a water damage claim?
A prior claim can impact your ability to get coverage or increase your insurance premiums. The claim may appear on the property’s CLUE (Comprehensive Loss Underwriting Exchange) report. Ask your real estate agent or insurance advisor to review this history before closing. Just as important, ask whether the underlying issue was fully repaired. A burst pipe may signal broader system failure. While an insurance agent can’t inspect plumbing, we recommend buyers confirm repairs were made and documented. Your insurance advisor can help you understand how the property’s claim history may affect homeowners insurance coverage options.

An insurance review can clarify whether prior losses impact your options as a buyer.

4 Ways to Prevent Costly Water Damage

​While insurance helps cover the unexpected, prevention is still the best defense. Here are four simple steps every homeowner can take to lower their risk of water damage:
1. Review your insurance policy
Understand what’s covered and where gaps may exist.
2. Have your plumbing inspected
Homes over 20 years old should have pipes and shut-off valves checked regularly.
3. Install smart leak detectors
These devices can identify water problems early and may qualify you for premium discounts.
4. Turn off your main water supply when traveling
This simple step can prevent a major loss while you're away.

Final Thoughts

​Water damage is one of the most frequent and expensive homeowner claims in California, especially in Los Angeles. And it often strikes when you least expect it: during summer, during a trip, or after years of unnoticed wear and tear.
To protect your home:

• Understand your risk
• Ask your agent about available endorsements
• Stay ahead of maintenance issues

Your home might survive the drought. But can your plumbing?

Need help reviewing your coverage or identifying policy gaps? Contact our team today.