Australians Dangerously Unaware of ‘Escape of Liquid’ Risk as School Holidays Approach

As Australian families prepare to lock up and head off on school holidays, Budget Direct warns customers of the silent saboteur responsible for 19% of its home claims over the past two years - escape of liquid.

Budget Direct data reveals escape of liquid as the second most common home and contents claim type making up 19% of claims. With an average cost of $23,843, these claims are most prevalent in Victoria (36%) followed by Queensland (20%).

The insurer’s latest survey with more than 1,000 Australians also uncovers a potential reason why, with almost 25% of respondents saying they don’t actually understand what escape of liquid is, or what puts them at risk.

Escape of liquid refers to damage caused by a sudden escape of liquid, or liquid that has escaped slowly over time, as long as you couldn’t reasonably be aware of it. Examples include a pipe bursting unexpectedly, a leak from a pipe inside a wall that has built up over time or burst drain hose in your washing machine.

One of the leading causes of escape of liquid claims are flexi-hoses, which are found in many Australian households across bathrooms, kitchens, and laundries. When asked how often they should be checked, 28.4% of respondents did not even know what a flexi-hose was, and 29.6% thought once a year was enough.

Catherine Harty, Senior Product Marketing Manager at Budget Direct, said the data highlights a concerning risk for Australian homeowners heading into school holidays with this potential threat lurking under sinks.

“Flexi-hoses fail silently and catastrophically. They can burst or crack without warning, and if no one’s home - like during school holidays - the damage is extensive before anyone knows there’s a problem,” said Harty.

“Opening the door to a burst flexi-hose would have to be one of the worst ways to be welcomed home.”

Surprisingly, newer homes are not immune to escape of liquid risks and could even be more vulnerable. Budget Direct’s survey found that 1 in 5 respondents with homes built after 2000 have made an escape of liquid claim, compared to 1 in 7 overall.

“This challenges the assumption that newer homes are problem-free,” commented Harty.

“Modern homes have more complex plumbing systems and appliances, which means there are more things that can go wrong. Families with newer homes often assume they’re protected by building standards, but they’re just as vulnerable to escape of liquid as older properties, if not more so.”

To ensure your home is protected when on holidays, Harty shared these essential steps.

1. Turn off water at the mains: Turn the valve handle completely clockwise before heading away on holidays. This will prevent water from reaching the home, and saves you from the potentially catastrophic damage of burst pipes.
2. Inspect your flexi-hose every six months: Run a hand along the external braiding. If you feel anything rough, spiky, or bulging, this could indicate it’s fraying or unravelling, and is worth getting your tradesperson or plumber to replace the hose.
3. Check manufacture dates for water systems: Check manufacture dates for any water systems, including hoses and heating. Many flexi-hoses have a five-year warranty, meaning manufacturers expect them to only last that long. Expired hoses need to be replaced to avoid the possibility of a leak.
4. Watch for signs of damage: Look for dampness or droplets under the sink, paint bubbling on inside walls, rotting skirting boards or floorboards, colour changes to carpet, and discoloured shower/bath seals and bases. These are early warning signs that something needs attention before you head away.

This handy guide provides more detail on preventing water damage in the home, common insurance cover and how to make a claim.

“We want to empower Australians to better manage their risk and protect their home and contents while away,” added Harty.

Read the full Escape of Liquid Survey and Statistics 2025