Subscribe to our Construction Newsfeed
UK Construction Directory
Search our 157,481 companies....

Construction News

17/04/2012

Unnecessary Water Pipe Insurance Costs Consumers £100m

Which? has discovered that 10 of the UK's 12 biggest water companies are promoting potentially unnecessary supply pipe insurance, costing consumers more than £100m per year.

Water companies were found to be promoting expensive supply pipe insurance when they offer their own free pipe repair schemes which customers are automatically entitled to use, resulting in millions of people buying insurance they don’t need and will never claim on.

Water companies proactively push this costly third party insurance, and our researchers found nine of the 12 big companies promoting Homeserve’s policy via direct mail promotions. While references to the water companies' free pipe repair schemes are included in some of these letters, their benefits were played down. Some of the firms also promoted third party insurance on their own headed paper, potentially persuading consumers to unnecessarily buy a policy.
-- Advertisement --
hss



None of the letters scrutinised mentioned that home insurance may also cover water supply disruptions. Which? found that 19 of the leading 25 home insurers, including AA, Legal & General and RIAS, will cover burst supply pipe claims to varying degrees.

Which? executive director, Richard Lloyd, said: "It's totally unacceptable that water companies are pushing potentially unnecessary water supply pipe insurance from third-party private companies. Few companies highlight their own assistance schemes, and most fail to tell you that your home buildings insurance may overlap on the key benefits of cover.

"We’re calling on all water companies to use the same free pipe repair scheme so that it’s clear to consumers what they’re covered for. We also want to see the Government and Ofwat take action to stop water companies from confusing consumers by promoting third-party pipe insurance under their own banner."

(CD)

Latest Construction News

10/07/2025
Vistry Group has agreed two major deals with housing provider Abri to enable the delivery of almost 200 affordable homes across Hampshire, marking a significant step forward in addressing local housing needs. In Funtley, near Fareham, Vistry has completed a simultaneous land acquisition and forward
10/07/2025
Caddick Construction has officially completed its first Midlands project with the handover of Mansion House, a six-storey residential development comprising 58 new apartments, to joint venture partners Urban Splash and Places for People. Located on the 43-acre Port Loop island alongside Birmingham
10/07/2025
Lovell has broken ground on a new residential development in Port Sunlight, set to transform a long-vacant brownfield industrial site into a thriving community of 115 high-quality homes. Located on Dock Road North, the development supports the local authority’s strategy to unlock underused land for
10/07/2025
Morgan Sindall Construction's Wales division has officially broken ground on a new state-of-the-art Additional Learning Needs (ALN) school in Clydach Vale, designed to be net zero carbon in operation. Commissioned by Rhondda Cynon Taf County Borough Council, the £37 million school will provide Engl
10/07/2025
HG Construction has announced a £1.2 million investment in Dumarey Green Power's 'Revolution Battery' technology, following successful trials earlier this year aimed at decarbonising crane and hoist operations across its UK sites. The investment marks a significant step in HG Construction's drive t
10/07/2025
M Group has completed a major improvement project at Queenstown Road Station in south-west London, delivering long-awaited upgrades including a new rear entrance designed to ease access for daily commuters. Undertaken on behalf of developer Taylor Wimpey, the project involved significant engineerin
10/07/2025
Helical has appointed McLaren Construction as the main contractor for the £90 million transformation of Brettenham House, an iconic Art Deco building on London's north bank, into a state-of-the-art sustainable office and retail hub. Originally built in 1932 and located within the Savoy Conservation
10/07/2025
Tower Hamlets Council has completed 30 road resurfacing schemes across the borough over the past year, thanks to targeted investment and funding support from central government. The improvements aim to deliver a more resilient road network, reduce disruption, and lower carbon emissions. Part-fund
10/07/2025
Mace has been appointed by Pegasi to deliver the major transformation of Fresh Wharf, a prominent 1980s building located on the banks of the River Thames, into a cutting-edge, sustainability-driven workplace. Situated just minutes from Tower Bridge, the 11-storey structure will be transformed to of
10/07/2025
Morgan Sindall Construction has celebrated a key milestone at Abbeywood Community School with a steel signing ceremony marking the final structural installation of the school's new extension – completed ahead of schedule. Held on 27 June, the event brought together representatives from South Glouce
Stuart CanvasLakeside HireAqua Direct LtdEfco UK LtdWeBuildEcoAlpha Piling LTDBrimar PlasticsLiquid Corporate Financeecomerchant LimitedBert & May Collection by Hyperion Tiles