This article was originally published on Construction Today.
Water damage has surpassed fire as the leading cause of construction insurance claims, accounting for roughly 30% of all builder’s risk losses and an estimated $16 billion in annual losses across the US.
The contractors who consistently avoid these losses adopt water risk management as a company-wide best practice, rather than reacting to incidents after they happen.
Before your next project starts, evaluate whether your organization follows these eight principles.
1. Treat water damage prevention as a company-wide strategy
Every successful water risk program begins with a structured Water Damage Prevention Plan (WDPP).
Establish a repeatable company-wide framework that defines responsibilities, inspection routines, temporary water management, commissioning procedures, emergency response, documentation standards, and communication between trades.
2. Build ownership across the project team
Water risk cannot depend on one individual.
Instead, establish a clear ownership structure with a designated Water Damage Prevention Lead supported by project management, superintendents, MEP teams, commissioning personnel, and subcontractors.
Everyone should understand both their responsibilities and the escalation process.
3. Every water system deserves equal attention
Domestic water is only one part of the picture.
A comprehensive prevention program should include temporary construction water, fire protection, HVAC, cooling towers, pressure zones, and any other system capable of introducing water into the building.
Many of the industry’s largest losses originate from systems that weren’t considered part of the original water risk assessment.
4. Know your deductible before you need it
Review your Builder’s Risk policy, deductibles, exclusions, and insurer requirements before an incident occurs.
This matters far more today than it did only a few years ago. Deductibles that once ranged from $25,000–$50,000 now commonly reach $150,000–$250,000 for a first water loss, while major claims above $500,000 have doubled since 2015 and claims exceeding $1 million have tripled.
5. Building codes are shifting earlier in the project timeline
Water monitoring requirements are no longer limited to building operations after occupancy.
Today, evolving standards, including LEED v5, expect water monitoring, leak detection, and documented risk management to be considered much earlier, during design, construction, and commissioning.
Forward-thinking contractors are already treating these requirements as part of project delivery rather than post-handover operations.
6. Buildings don’t occupy themselves all at once
Modern developments often involve phased turnover, mixed-use spaces, multiple contractors, and occupied areas beside active construction. These conditions significantly increase water risk.
Plan water protection for every phase independently, and continue those controls throughout the warranty period.
7. Water risk doesn’t end at handover
Most contractors remain responsible for water-related issues long after construction is complete.
Warranty periods commonly extend one to five years, and many significant water events occur during the first year of occupancy while systems continue to be commissioned, adjusted, and modified.
Maintaining documentation throughout the warranty period reduces liability and accelerates investigations if an incident occurs.
8. Stop managing water risk manually
Automation ensures that a Water Damage Prevention Plan is consistently executed, regardless of staffing levels, shift changes, or human error.
Today’s water management platforms continuously monitor water systems 24/7, automatically detect leaks, notify teams immediately, and can even shut off water automatically before damage spreads.
It reduces dependence on manual processes, strengthens compliance, and provides confidence that your protection strategy is working even when no one is on site.
Going deeper on water risk
This checklist summarizes the principles that leading contractors increasingly treat as industry best practice.
For a deeper look at why water has become construction’s largest financial risk, and how leading contractors are reducing claims, controlling costs, and improving project resilience, we prepared From Risk to Resilience: The Guide to Eliminating Leaks in Construction. Download it here.
Wint is an AI-powered water intelligence platform used on construction sites and in commercial buildings to detect leaks in real time and shut off water automatically before damage spreads. It covers everything from domestic water lines to HVAC and risers in one dashboard, works over cellular so it does not depend on site infrastructure being finished, and is backed by a performance warranty through HSB and Munich Re. Learn more at wint.ai.
