16 March 2025 | See disclaimer
We surveyed 1018 Australians aged 18+ to understand how much they know about Escape of Liquid, and what they think an insurer considers an Escape of Liquid event.
Quick Stats
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Only 14% of Australian respondents have made a claim related to Escape of Liquid.
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Nearly 77% of Australian respondents think it’s the owner’s job to inspect flexi-hoses for damage in rental homes.
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More than 30% of Australian respondents think Escape of Liquid is one of the leading causes of home insurance claims costs in Australia.
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Budget Direct data reveals that Escape of Liquid was the second most common claim type between July 2024 and May 2026, making up 19% of claims
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36% of Escape of Liquid claims have recently been made in Victoria, followed by 20% in Queensland
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On average, the total claim cost is $23,843, with average building costs coming to $30,418 and average contents costs coming to $7,784
Escape of Liquid Definition
Budget Direct’s Product Disclosure Statement (PDS) refers to Escape of Liquid as:
“Loss or damage at the insured address caused by the sudden Escape of Liquid. You are also covered for damage from liquid that has escaped slowly over time that you couldn’t be reasonably aware of”.
Understanding Escape of Liquid
Escape of Liquid Cover
You should find out what’s considered “Escape of Liquid” by your insurer. Escape of Liquid should not be confused with flood cover, which, for some insurers, is an optional cover you can add to your policy.
Knowing the Risks
Make sure you know where liquid can escape in your home. This may include flexi-hoses and other liquid-filled items around the home. Find out how you can proactively take measures to decrease their risk of leaking.
Escape of Liquid Survey Results
What is your home ownership status?
Australia
| Home Owner | 70.04% |
| Renter | 25.44% |
| Boarding | 1.47% |
| Other | 3.05% |
There are 70% of Australian respondents who are homeowners. While a quarter of respondents said they were renters.
What type of home do you live in?
Australia
| Apartment | 19.35% |
| Semi-detached house | 6.39% |
| House | 66.50% |
| Townhouse | 7.76% |
Two-thirds of Australian respondents live in a house. And nearly 1 in 5 respondents live in an apartment.
When was your home built?
Australia
| 2000+ | 41.75% |
| 1980-1999 | 30.16% |
| 1960-1979 | 17.09% |
| 1940-1959 | 5.60% |
| 1920-1939 | 2.55% |
| Before 1920 | 2.85% |
More than 40% of Australian respondents live in homes built in 2000 or later. This was followed by 30% of respondents’ homes built in 1980-1999 and 17% of homes built in 1960-1979.
In 2023, we used home insurance quote data to find Australia’s oldest homes. According to this data, more than 40% of Australia’s oldest homes (pre-1900s) are found in New South Wales. This was followed by 34% of homes in Victoria. [2]
What is the industry definition of “Escape of Liquid”?
Australia
| When liquid escapes in the home, and causes damage suddenly and unexpectedly. | 75.15% |
| When a large storm event occurs, and water enters the home | 12.18% |
| When a car has a slow-cooling fluid leak | 7.56% |
| When a river bursts its banks and floods the home | 5.11% |
Almost 25% of respondents did not know the correct definition for an Escape of Liquid event.
Home Ownership Status
| Home Owner | Renter | Other | |
|---|---|---|---|
| When liquid escapes in the home, and causes damage suddenly and unexpectedly. | 77.84% | 67.18% | 80.65% |
| When a large storm event occurs, and water enters the home | 10.38% | 17.37% | 9.68% |
| When a car has a slow-cooling fluid leak | 6.87% | 10.04% | 6.45% |
| When a river bursts its banks and floods the home | 4.91% | 5.41% | 3.23% |
More than 75% of Australian respondents (homeowners, renters and others) said the industry definition of Escape of Liquid is when liquid escapes in the home and causes damage suddenly and unexpectedly.
While more than 17% of renters said the industry definition is when a large storm event occurs, and water enters the home.
Do you have insurance on the home you live in?
Home Ownership Status
| Home Owner | Renter | Other | |
|---|---|---|---|
| Home and Contents | 80.08% | 11.20% | 48.39% |
| Contents | 7.15% | 25.87% | 3.23% |
| Home | 8.56% | 6.95% | 9.68% |
| Other | 0.28% | 1.16% | 3.23% |
| No | 3.93% | 54.83% | 35.48% |
More than 80% of Australian home owners have Home and Contents Insurance.
More than 50% of Australian renters do not insure the Contents in the home they live in. Only 26% of renters said they have Contents Insurance.
Have you ever made a claim on your home and/or contents insurance?*
Australia
| Yes | 35.89% |
| No | 64.11% |
Home Ownership Status
| Home Owner | Renter | Other | |
|---|---|---|---|
| Yes | 38.25% | 28.21% | 15.0% |
| No | 61.75% | 71.79% | 85.0% |
*Respondents only answered if they said their home is insured in the previous question.
Nearly 36% of Australian respondents said they’ve made a claim on their insurance.
Homeowners were most likely to have made an insurance claim over renters and others.
Have you ever made a claim related to Escape of Liquid?*
Australia
| No, I've never claimed for Escape of Liquid | 53.18% |
| I don't think I've made a claim relating to Escape of Liquid | 12.37% |
| I honestly don't know | 11.71% |
| I think I might have claimed for Escape of Liquid | 8.70% |
| Yes, I've made an Escape of Liquid claim | 14.05% |
Home Ownership Status
| Home Owner | Renter | |
|---|---|---|
| No, I've never claimed for Escape of Liquid | 56.49% | 27.27% |
| I don't think I've made a claim relating to Escape of Liquid | 11.83% | 18.18% |
| I honestly don't know | 9.92% | 27.27% |
| I think I might have claimed for Escape of Liquid | 7.63% | 12.12% |
| Yes, I've made an Escape of Liquid claim | 14.12% | 15.15% |
Building Period For The Home
| 2000+ | 1980-1999 | 1960-1979 | |
|---|---|---|---|
| No, I've never claimed for Escape of Liquid | 46.22% | 55.45% | 58.70% |
| I don't think I've made a claim relating to Escape of Liquid | 13.45% | 11.88% | 15.22% |
| I honestly don't know | 10.08% | 13.86% | 8.70% |
| I think I might have claimed for Escape of Liquid | 10.92% | 7.92% | 8.70% |
| Yes, I've made an Escape of Liquid claim | 19.33% | 10.89% | 8.70% |
*Respondents only answered if they said they’d made an insurance claim in the previous question.
Only 14% of Australian respondents have made a claim related to Escape of Liquid.
While 27% of renters honestly didn’t know if they’d made this type of claim.
And respondents who lived in homes built in 2000 or later were most likely to have made an Escape of Liquid claim, showing an increasing trend for this type of claim.
Which of the following situations might indicate there has been an Escape of Liquid (that may cause damage) in a home?*
Australia
| 1 | Rotting skirting boards or floorboards | 71.02% |
| 2 | Paint appearing to bubble on the inside walls | 68.17% |
| 3 | Brown spots appearing on the downstairs ceiling of a 2-storey home | 64.93% |
| 4 | Colour changes in carpet | 59.53% |
| 5 | Discoloured shower/bath seals and bases | 54.32% |
| 6 | None of the above | 9.04% |
*Respondents could select multiple options (except if they selected “None of the above”). This means results may not add up to 100%.
Each of these situations could present as a possible sign of Escape of Liquid.
However, 9% of Australian respondents said none of these situations would indicate an Escape of Liquid in the home.
It’s important if you see any of these signs of Escape of Liquid, it’s best to contact your insurer to enquire about making a claim.
Which of the following options would an insurance company consider an Escape of Liquid?*
Australia
| A sink pipe bursting, leaking water throughout the kitchen | 71.02% |
| A severe storm blows a tile off the roof, letting rain in and causing damage to a home's ceilings | 50.69% |
| A waterbed bursting in a home, leaking and causing damage | 51.28% |
| A leaking shower floor and wall causing damage to the home | 63.26% |
| An old fixed oil heater leaking oil onto the carpet, causing damage | 34.77% |
| An action of the sea (such as a tidal wave) | 20.04% |
| None of the above | 4.13% |
*Respondents could select multiple options (except if they selected “None of the above”). This means results may not add up to 100%.
More than 50% of respondents believed that storm damage to a roof that lets rain into a ceiling would be considered an Escape of Liquid event. While this scenario would be covered by storms and rainwater in a Home and Contents Insurance policy, it’s not covered as Escape of Liquid, showing a large gap in consumer understanding.
Budget Direct would consider the following to be Escape of Liquid:
- A sink pipe bursting, leaking water throughout the kitchen
- A waterbed bursting in a home, leaking and causing damage
- An old fixed oil heater leaking oil onto carpet, causing damage
Whose job should it be to inspect flexi-hoses in rental homes for damage?
Australia
| I live rent-free | 7.47% |
| Owner | 76.72% |
| Renter | 15.82% |
Home Ownership Status
| Home Owner | Renter | Other | |
|---|---|---|---|
| I live rent-free | 6.73% | 2.32% | 45.16% |
| Owner | 85.97% | 56.37% | 51.61% |
| Renter | 7.29% | 41.31% | 3.23% |
Nearly 77% of Australian respondents think it’s the owner’s job to inspect flexi-hoses in rental homes for damage.
While it’s the owner’s responsibility to keep all appliances and fixtures supplied with the property in a good state of repair, as a renter, it’s best to stay aware. By checking on the condition of the flexi-hoses and letting your landlord know about any potential issues, this may prevent costly water damage to the property and your belongings. [3]
How often should you check your flexi-hoses?
Australia
| Once a year | 29.57% |
| Once every 6 months | 35.56% |
| Only when you buy a house | 5.40% |
| Only when you sell a house | 1.08% |
| I don't know what a flexi-hose is | 28.39% |
Home Ownership Status
| Home Owner | Renter | Other | |
|---|---|---|---|
| Once a year | 32.96% | 22.78% | 22.58% |
| Once every 6 months | 38.01% | 30.12% | 25.81% |
| Only when you buy a house | 4.77% | 8.11% | 0.0% |
| Only when you sell a house | 1.26% | 0.77% | 0.0% |
| I don't know what a flexi-hose is | 23.0% | 38.22% | 51.61% |
More than 35% of Australian respondents think you should check your flexi-hoses once every six months. This was followed by nearly 30% of respondents who thought you should check them once a year.
Homeowners were more likely than renters to check their flexi-hoses once every six months. Meanwhile, renters are less likely to know what a flexi-hose is.
Regularly checking your flexi-hoses every six months for wear or leaks can help in maintaining your home and prevent potential loss or damage to your home and contents from water damage.
What are the water pipes made of in your home?
Australia
| Copper | 33.01% |
| Plastic | 20.92% |
| Iron | 4.91% |
| Brass | 6.09% |
| I don't know | 35.07% |
Building Period
| 2000+ | 1980-1999 | 1960-1979 | 1940-1959 | 1920-1939 | Before 1920 | |
|---|---|---|---|---|---|---|
| Copper | 24.94% | 37.46% | 39.08% | 47.37% | 30.77% | 41.38% |
| Plastic | 29.41% | 15.96% | 16.09% | 14.04% | 7.69% | 3.45% |
| Iron | 6.12% | 4.89% | 2.87% | 1.75% | 7.69% | 3.45% |
| Brass | 6.82% | 5.54% | 6.90% | 5.26% | 3.85% | 0.0% |
| I don't know | 32.71% | 36.16% | 35.06% | 31.58% | 50.0% | 51.72% |
A third of Australian respondents said that their pipes are made of copper in their homes. While 20% of respondents said their pipes were plastic.
Nearly 50% of Australians who live in houses built from 1940-1959 said they have copper pipes in their home, much higher than the national average in this survey.
More than 35% of respondents didn’t know what their water pipes are made of in their home.
Respondents who live in homes built before 1920 were least likely to know what their house pipes were made of.
What are the leading causes of home insurance claims costs in Australia?*
Australians estimates
| Earthquakes | 1.67% |
| Floods | 25.05% |
| Storms | 24.46% |
| Escape of Liquid | 32.32% |
| Theft | 16.50% |
*Respondents could select multiple options. This means results may not add up to 100%.
More than 30% of Australian respondents believe that the Escape of Liquid is one of the leading causes of home insurance claims costs in Australia. This was followed by 25% of respondents who selected floods and 25% who selected storms.
Actual Leading Causes of Home Insurance Claim Costs
| Escape of Liquid | 19% |
| Storms | 38% |
Actual Escape of Liquid Claim Costs
| Average EOL claim cost | $23,843 |
| Average building cost | $30,418 |
| Average contents cost | $7,784 |
