Escape-of-water damage remains a significant cost for UK property insurers, but connected building technology is changing how the industry approaches the risk. Rather than relying solely on insurance to absorb losses after a leak, insurers and property owners are increasingly exploring ways to identify problems earlier and limit damage before it develops into a claim.
Quensus’ analysis highlights 26,845 escape-of-water claims recorded by Aviva between 2023 and 2025, with an average cost of £11,273 per claim. The figures illustrate why prevention is becoming a more important part of the property insurance conversation, particularly as insurers, landlords and facilities teams look for ways to reduce both the frequency and severity of water-related losses.
Traditionally, property insurance has focused on assessing exposure, pricing risk and responding once an incident occurs. Connected building technology introduces the possibility of a more proactive model. Sensors can monitor water flow and consumption continuously, identify unusual patterns and, in some systems, automatically shut off the supply when a potential leak is detected.
Quensus has developed its LeakNet platform around this approach. The IoT-enabled system continuously monitors water flow and uses AI to identify potential leaks before automatically isolating the water supply. The company is also working with Aviva on proactive water risk mitigation, bringing connected monitoring into the insurer’s approach to preventing property damage.
The value of connected monitoring is not limited to identifying a leak. The data generated by these systems can provide insurers and property owners with a clearer picture of how a building’s water risk is being managed. Consumption records, alerts, response times and remedial action can provide evidence that preventative controls are in place and being actively maintained.
That does not automatically translate into lower insurance premiums. Pricing decisions remain dependent on factors including the insurer, individual property and claims history. But greater visibility into how risk is being managed could give insurers another source of information when assessing property exposure.
For landlords and building operators, there is also a wider business case for collecting this data. Information generated through connected water systems can support water-efficiency initiatives, sustainability reporting and facilities management, potentially making the technology useful beyond its insurance application.
The development reflects a broader shift in InsurTech towards prevention rather than simply improving the response to claims. Connected devices can allow insurers to become more involved in identifying and managing risks before they develop into losses, while giving customers tools to respond to emerging problems.
For that model to work at scale, however, technology alone is not enough. Effective prevention depends on reliable installation, continuous monitoring, performance reporting and integration with existing workflows. Insurers and property operators also need access to the expertise and infrastructure required to respond when systems identify a potential problem.
Escape-of-water risk provides a clear example of where this approach could have an impact. A leak that is detected early and automatically isolated can potentially prevent a relatively contained incident from becoming a major property claim. For insurers, that changes the role of technology from helping manage a loss after the event to helping prevent the loss from occurring in the first place.
As water damage continues to represent a significant cost for property insurers, Quensus’ analysis suggests connected buildings could become an increasingly important part of how that risk is managed. The longer-term opportunity for the insurance industry is not simply to collect more data, but to use it to intervene earlier, reduce losses and develop a more prevention-focused approach to property risk.
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