Escape of Liquid (EOL) is one of Australia’s most common insurance claims, however, it is a little-known concept to most of us. EOL is when a liquid substance accidentally leaks or spills from where it’s supposed to be, resulting in water damage. Data from the Australia Federation of Travel Agents (AFTA) show that in 2018, the average cost of a water damage claim (excluding a natural disaster) was over $30,000 AUD. 

Water damage can be caused by a range of different situations, including:

  • A burst pipe

  • Plumbing leak
  • A ruptured aquarium/waterbed

  • External events such as floods and storms.

Water Leak

Budget Direct conducted a survey in 2022 of 960 Australians and the results show that:

  • 12% of participants couldn’t identify what would be a sign of possible Escape of Liquid in the home

  • Only 1.4% of participants could accurately identify which circumstances would count as EOL

  • 58% of Australian respondents couldn’t pick the industry EOL relates to

Keep reading to discover how you can reduce your risk of an EOL claim. 
Depositphotos 25630745 Stock Photo Plumber Sink

Inspect and Maintain Your Plumbing

Regularly inspecting your plumbing system is crucial for preventing water damage. Look for signs of leaks, such as damp spots, water stains, or unexplained increases in water bills. It is also a good rule of thumb to replace your flexi-hose every 5 years and inspect it every 6 months.


What Are Flexi-Hoses?

A Flexi-hose is a flexible plumbing connector made out of rubber and braided stainless steel outer covering. It allows for easy installation and connects fixtures and appliances to water supply lines. Flexi-hoses are widely used in Australia and have been around for 25 + years.

Where Are Flexi-Hoses Installed?

Warning Signs To Look Out For

  • Underneath sinks

  • Behind toilets

  • Behind washing machine

  • Behind dishwashers

  • Near water heaters

  • Fridges with ice/water supply

  • Visible wear & tear

  • Corrosion or rust

  • Persistent dripping or leaking

  • Reduced water pressure

  • Age of the hose

  • Unusual sounds

  • Bulging areas on the pipe

  • Fraying or kinking

Close Up Of Water Is Leaking From The White Sink Pipe

Be Mindful of Appliances

Appliances like washing machines, dishwashers, and refrigerators with water lines can be potential sources of leaks. Consider installing water leak detectors near these appliances to provide early warning in case of lea


Maintain Your Roof

A well-maintained roof is your first line of defence against water damage. Inspect your roof for damaged or missing shingles, cracked flashing, or clogged gutters. Repair or replace damaged components promptly and ensure gutters and downspouts are clear of debris to allow proper water drainage. Consider regular roof inspections by professionals to detect and address any hidden issues

If you do encounter EOL, such as a leak or a flood, take immediate action. Turn off the source of the water if possible, remove standing water, and dry out the affected area. Use fans and dehumidifiers to prevent mould growth. Contact your insurance company if the damage is extensive or beyond your capability to handle.